The Aftermarket in Latin America and Opportunities at the Virtual AAPEX Experience 2020
Monday, August 31, 2020
By Carolina Arregoces, associate, international affairs, Auto Care Association
This year, the Virtual AAPEX Experience will offer attendees the opportunity to reach the over $1 trillion global automotive aftermarket industry. It will be a unique, interactive way to connect with industry professionals and to identify business opportunities with current and additional international buyers from the comfort and safety of your homes and businesses.
A region with increasing potential in the current global aftermarket outlook is Latin America. Characterized by a rapidly growing base of middle-class consumers with increased purchasing power and continued investment into infrastructure and diversifying industries, Latin America is also one of the most urbanized regions in the world and home to more than 649 million people. Top destinations of U.S. auto parts exports in Latin America are Brazil, Chile and Colombia. Exports to Peru and Dominican Republic also exhibited impressive growth in the last decade with an over 80% increase.
Why Latin America?
- There are growing and aging vehicle populations that require continuous maintenance due to road conditions, heavy traffic and lack of public transportation. In addition, distances traveled in vehicles are increasing due to an accelerated urban expansion.
- The sales of used cars and imported used cars have increased along with more vehicle inspection requirements, which supports enhanced government safety and emissions regulations and are helping drive more demand for maintenance parts.
- The region is significantly reliant on imported auto parts due to low levels of local manufacturing of aftermarket products.
- Vehicle owners and service technicians in this region are increasingly turning to internet retailers to meet the demand for parts and accessories not available at their local stores.
- The United States is the largest and fastest growing trading partner for many countries in Latin America with more than 40% of the U.S. exports going to this region and more than half of all America’s Free Trade Agreement (FTA) partners.
Recognizing these opportunities, exhibitors will have the opportunity to connect with international buyers and distributors through the Virtual AAPEX Experience platform. In addition, the Auto Care Association is offering international buyers a customized service to match them with exhibitors and products of their interest.
If you are interested in exploring and increasing your presence in regions such as Latin America, the Virtual AAPEX Experience is the best platform to connect with industry executives, create business relationships and expand business opportunities in the region.