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A solution for the global replacement part market. This is how the 11 Colombian auto-part exporters were presented during their participation in APPEX, the most important fair of the industry in America, which was supported by Proexport.
During the three days of this fair in Las Vegas, the Colombian stand was located for the first time on the main floor of the fairground, and it received potential clients from countries such as Italy, Spain, Nigeria, U.S.A. and Mexico, in addition to Central and South America.
Manufacturers, wholesalers, retail distributors, intermediaries, importers and packers were interested for the Colombian offering that included products such as batteries, brakes, suspension, safety parts, filters, steel cables, cables, rims, shock absorbers, and discs.
" This is the first fair since the FTA with the U.S. has been in force. In fact, I got two new clients from that country with which I will trade engine jackets, but the idea is not only to close a sales deal, but rather a long term relationship" , said Olga Patricia Vesga from Industrias Lavco, who also found potential clients from Nigeria, Uruguay and Central America.
Colombian participants who reported business expectations for USD$ 3.1 million, were: American Rubber de Colombia, Guayas B& G, Industrias Lavco, Industrias Partmo, Inversiones Reinoso, Altamax - Castel Motors, Forjin - Sicolsa, Baterias Willard, TNK -Terminales Automotrices, Indymetal and Grupo RHC.
Claudia Pelaez, from American Rubber de Colombia also closed business deals. " I was able to enter two orders of rubber for brakes, one for Mexico and another for Honduras, for a value of around USD$50,000. I also met potential clients in countries where I have no presence, such as Spain and Italy" .
She also ensured that the success of Colombian companies at this type of international fair, is the result of a combination of several factors. " National manufacturers are serious and we have a history, we are not improvising and we know about this topic. We also manufacture with quality and we have been obtaining quality certifications" .
This has allowed her company to compete in markets such as South Korea, where they have been exporting to since two years ago.
Although most of the clients that visited the stand in Colombia were Latin American, Colombian participants could connect to important companies from U.S. such as Kubota, Taurus International, MTD Products and International Brake Industries and Midwest Trucks, which have become their clients.
" We sell parts to Kubota for vehicles that they use in the agricultural sector in the U.S." , explained Luis Betancourt, from Terminales Automotrices TNK, a company that exports suspension parts, tie rod ends and wheel cubes.
Competitiveness abroad
PROCOLOMBIA identified that the trend to transfer the production of vehicles and auto-parts to countries with lower costs such as India, China and South American countries explain Colombia' s opportunities as an auto-part vendor.
Colombia also enjoys a privileged geographic location that allows sending products in less time and with better costs to markets in the region.
Among the markets that offer opportunities according to PROCOLOMBIA, we have the Canadian market where there is a demand for electronic equipment, paint, seats, interior finishings, transmission, brake pads and liners.
The U.S. market was also seen as a country with opportunities with leaf springs, helical springs and pads, liners, seats and interior finishings.
In the northern triangle (Guatemala, Honduras, El Salvador) there are possibilities with tires and pneumatics, batteries, cables, safety belts, transmission systems, cooling systems, filters, accessories, air conditioning and safety windows.
According to information from the Ministry of Trade, Industry and Tourism, and information from DANE (National Statistics Center) Colombian auto-parts have grown 220% during the last 8 years. While in 2004 they represented a total of USD$ 218 million, in 2011 the total was of USD$ 494.4 million and between January and August 2012, this reached a total of USD$ 308 million.
The main destinations in 2011 were Ecuador (USD $119.4 million), Brazil (USD$ 100.9 million), Venezuela (USD$ 67.7 million), Peru (USD$ 36.6 million) and Mexico (USD$ 35.6 million).
Between January and August 2012, the main destinations were Ecuador (USD$ 71.9 million), Venezuela (USD$ 59.7 million), Brazil (USD$ 46.9 million), U.S. (USD$ 23.7 million) and Peru (USD$ 22.8 million).
