This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/13/2019

This is a best prospect industry sector for this country. Includes a market overview and trade data.
 

Overview

The outlook for automotive aftermarket products is positive, with an expected 10 percent growth rate over the next three years. An aging car population, coupled with increasing car ownership in major cities, continues to fuel demand for automotive parts and accessories in Honduras. An estimated 70 percent of the total vehicle population, registered at over 1.5 million units in 2016, is at least five years old and in need of repair. The number of motorized vehicles is predicted to double in five years’ time and the distances traveled should also increase due to an accelerated urban expansion. Growing consumer awareness over the importance of scheduled servicing and preventive maintenance is also influencing the market.

Out of the total vehicle population circulating in Honduras in 2016, 37.1 percent are motorcycles, followed by pick-up trucks and jeeps (23.4%); light duty passenger vehicles (19.5%): SUVs (9.1%); trucks (4.1%); buses (3.5%); heavy-duty vehicles (3.2%); Other categories (1.1%).

The introduction of U.S. manufactured vehicles has also increased significantly over recent years, providing greater opportunities for American exporters. Honduras has no local production of automotive parts and accessories. The United States is one of the major suppliers in this sector, along with Japan, Taiwan, Korea, China, Brazil, Mexico, Germany, and the United Kingdom.

Public service transportation units represent one of the major end-users of automotive parts and accessories in Honduras. Most of the Honduran urban transportation fleets use buses of low operational quality, of which 80 percent are obsolete. The replacement needs for urban buses alone is estimated at over $60 million. According to the National Statistics Bureau, buses and other passenger transportation vehicles report an average annual growth of 2,500 units.

There are more than 300 retailers of automotive parts and accessories in Honduras who buy directly from overseas or through local distributors. Major mechanical auto repair industry segments include service stations, specialty repair shops, auto parts stores, vehicle dealers and independent garages. Japanese cars and light trucks dominate the market but parts are often purchased through the United States. With the elimination of import tariffs based on engine size, American-made pickups, SUVs, heavy trucks and buses have stronger shares of the local market. There are several major U.S. automotive dealers present in the Honduran market.
 

 

2015

2016

2017

2018

Total Market Size

530.2

583.2

641.0

705.0

Local Production

n/a

n/a

n/a

n/a

Imports

578.6

636.5

699

768.0

Exports

48.4

53.2

58.5

63.1


Data in USD Millions

Sub-Sector Best Prospects
Overall, most auto care products and service equipment are expected to offer good sales opportunities in the Honduran market. Particularly promising products include:

  • All types of engine spare parts

  • Chemicals, motor oils and additives

  • Tools and equipment

  • Tires and wheels

  • Safety equipment

  • Car care and cleaning

  • Undercar and under hood products

  • Electrical and brake system components

  • Transmission and suspension parts

  • Bumpers, spoilers, and tail lights

  • Mobile electronics, alarms, and sound systems

  • Repair shop, paint, tools, and equipment

  • A/C Repair; refrigerants

  • Emission control services

  • Alignments, diagnostics, spark plugs


Opportunities
U.S. exports of automotive parts, service equipment, and accessories benefit from tariff reductions under the CAFTA-DR trade agreement. Used automobiles and passenger motor vehicles no more than 10 and 13 years old, respectively, may be imported. Major trends in the automotive aftermarket sector in Honduras include increasing car ownership due to rapid urbanization, a strong replacement demand, and a rising average vehicle life. A regulation involving Hazardous Gas Emissions of Automotive Vehicles, aimed at reducing the increasing air pollution levels generated by tailpipe emissions in the largest cities, should also benefit demand for specialty automotive equipment.

The Commercial Service Office in Tegucigalpa annually recruits and leads a delegation of Honduran automotive aftermarket leaders to the AAIW (SEMA/AAPEX) show in Las Vegas, Nevada. It is the most important retail and specialty automotive aftermarket trade event in the United States.

Web Resources
Honduran Association of Automotive Dealers and Distributors of Automotive Parts & Accessories
Regional Trade Statistics
National Statistics Institute
CAFTA-DR Website
U.S. Commercial Service

Trade Events:
Automotive Aftermarket Industry Week 
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.