Automotive Parts & Service Equipment

This is a best prospect industry sector for this country. Includes a market
overview and trade data.
Last published date: 2019-10-13

The market for new automobiles showed substantial growth in 2014, after
slower growth in the last previous years.  Approximately 60,000 new cars were
sold in 2014, resulting in increased demand for automotive parts and service
equipment.  The automotive inventory in Panama is estimated at over
1,000,000 units.  U.S. participation in the automotive parts and service market is
significant, with a market share of more than 40%.  Main competitors include
Japan, Korea, and Taiwan.  However, the U.S. market position will improve as
sales of U.S. cars increase.  Demand will also remain strong for U.S.-made car
parts and accessories for Japanese models. 
 
It is important to note that cars are not subject to import duties, regardless of
national content of origin.  They are, however, subject to a progressive sales tax
based on the value of the car.  The U.S.–Panama Trade Promotion Agreement
(TPA) does not, therefore, give a competitive advantage to U.S.-made cars. 
But, the TPA does give an advantage to U.S.-made automotive parts, which
enter the market duty-free; there are no import restrictions on these products. 
Sub-sectors offering the best market opportunities are servicing equipment,
tubes and tires, and engine parts.

Sub-Sector Best Prospects                                                              

Good prospects for U.S. exports include engine parts, pumps, filters, batteries,
ignition parts, spark plugs, lamps, body parts, brake parts, shock absorbers,
tires, exhaust components, and used or remanufactured parts especially for
buses, dump trucks, and other commercial vehicles.

Opportunities                                                                           

Panama is experiencing a construction boom, with approximately $15 billion in

outstanding public sector projects alone, in addition to the Panama Canal
expansion project and a number of private commercial and residential
developments.  This activity will bring excellent opportunities for U.S. exporters
of auto and truck parts.  In 2012, the Government of Panama completed
replacement of the entire bus fleet serving Panama City and continues to
impose greater regulations on car inspections, which has generated higher
demand for automotive parts.

Web Resources                                                                            

 American Chamber of Commerce in

Panama:  http://www.panamcham.com
 Business Panama:  http://www.businesspanama.com
 Panama Chamber of Commerce:  http://www.panacamara.com
 Expocomer (Commercial Trade Show):  http://www.expocomer.com