AUTOMOTIVE
Colombia has a robust business ecosystem of vehicle assemblers and manufacturers of parts and accessories, with great potential to serve the domestic market and export to the region and the world, contributing to the country's social and economic development.
Gasoline vehicles remain the best-selling segment, yet vehicles featuring environmentally friendly technologies such as hybrids and electrics are experiencing strong growth.
Passenger car sales by type of fuel, 2022
Source: Andemos
ATTRACTIVE DOMESTIC MARKET WITH POTENTIAL FOR AUTOMOTIVE INDUSTRY DEVELOPMENT
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In Latin America, 7.6 million vehicles were manufactured in 2024, and Colombia remained the fourth-largest producer, with 113,000 units manufactured.
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In 2024, the vehicle fleet in Colombia totaled 19.9 million vehicles in circulation, of which 7.3 million, or 37%, were cars.
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In 2024, 201,219 vehicles were sold in Colombia, 7.7% more than in 2023 when sales reached 186,826. It is expected that between 2026 and 2035, sales will grow at an average annual rate of 3.9%.
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The SUV segment is the best-selling one, with a 52% market share, followed by passenger cars at 27% and cargo vehicles at 7% in 2024.
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Colombia's low motorization rate represents potential demand for vehicle assembly companies to cover. The country records approximately 370 vehicles per 1,000 inhabitants in 2024, well below other Latin American countries with smaller populations.
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Some departments with potential for assembly and auto parts activities are Bogotá, Cundinamarca, Antioquia, the Coffee Region, and Valle del Cauca.
COLOMBIA HAS A STRATEGIC LOCATION FOR OPERATIONS WITH REGIONAL AND GLOBAL REACH
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With a strategic position in Latin America, Colombia has become an important hub for passenger and cargo transportation in the continent.
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Companies in Colombia can serve the American market, which imported over USD 399,125 million in vehicles in 2024.
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En 2024, Colombia exported vehicles valued at USD 380.3 million. These are primarily directed to countries with trade agreements in Central and South America, with Mexico, Ecuador, and Argentina as their main destinations.
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The country has a network of trade agreements that allow companies to enter markets in the automotive sector in Europe and North and South America with 0% tariffs.
COMPETITIVE INFRASTRUCTURE OF THE AUTOMOTIVE INDUSTRY IN COLOMBIA
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The country has an extensive network of support companies that facilitate the operations of assembly companies, with around 600 companies engaged in the manufacturing of auto parts and vehicle accessories, more than 6,900 companies dedicated to the trade of auto parts, around 2,300 companies registered in the trade of motor vehicles, and more than 5,100 companies registered in the maintenance and repair of vehicles.
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The automotive parts industry is represented by manufacturers with high potential to supply the automotive industry, certified with the IATF 16946 standard, ISO 9001:2015, ISO14001:2015, among others.
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The country has entrepreneurial initiatives around the automotive sector, such as the Chamber of the Automotive Industry of the National Association of Industrialists (ANDI), the National Association of Sustainable Mobility (ANDEMOS), the Colombian Association of Automotive Parts Manufacturers (ACOLFA), and the Automotive Sector and its Parts Association (ASOPARTES).
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Between 2020 and 2024, Colombia recorded more than 433,000 graduates in engineering programs, ideal for supplying the sector's need for skilled labor.
THE AUTOMOTIVE INDUSTRY HAS INCENTIVES THAT SEEK TO BOOST THE DEVELOPMENT AND COMPETITIVENESS OF THE SECTOR
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A program aimed at vehicle assemblers and automotive parts manufacturers called PROFIA allows for the importation of inputs and pieces to be incorporated in the manufacturing of more complex goods of the automotive industry, with exemption from tariff duties.
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The assembly and transformation regime for the automotive industry allows the temporary duty-free importation of CKD material to produce vehicles and auto-parts, to be assembled in private depots for transformation and assembly, or in free trade zones. Vehicles can be sold to Andean Community countries with 0% customs duty, provided that certain minimum levels of subregional content are met.
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There is also an option to import goods classified as raw materials and capital goods with 0% tariff that do not have domestic production.
INVESTMENT OPPORTUNITIES IN THE VEHICLE INDUSTRY IN COLOMBIA
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Assembly of electric vehicles or the establishment of partnerships with local assemblers to enable technology transfer and workforce training.
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Installation of assembly plants for cargo vehicles to serve the domestic market and export to the region.
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Installation of bus assembly plants to meet replacement demand for buses within integrated public transportation systems.
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