Panama Automotive Aftermarket

Panama’s car market is booming! A growing middle class and a strong economy, with an estimated 4.5% GDP growth in 2024, are driving people to buy vehicles. Panama imports over 80% of its car parts which opens opportunities for American companies to sell their high-quality aftermarket parts here.

As Panama’s automotive market grows, there’s a greater need for good replacement parts like brakes and filters, which are seeing about 15% annual growth in sales! People also want upgrades and parts for electric vehicles. Plus, online car part sales are jumping by around 20% every year. Finding a good local partner to help sell your products is very important.

Of course, there’s competition in the market. Asian companies sell many affordable parts and hold about 40% of the market at this time. Panamanians are fairly price-sensitive, so they might choose a cheaper part even if they prefer the American brand. Getting to rural areas can also be difficult, and there are many fake parts being sold, which unfortunately make up about 25% of the market.

To do well in Panama, you need to team up with strong local distributors, prove the authenticity of your parts, and provide great customer service. You’ll also have to keep up with changing trade regulations and do your homework on the market trends.

Big names like NAPA, Bosch (which has won about 30% of the battery market), Michelin, and Brembo are already there, and car manufacturers sell their OEM parts too. You’ll need to deal with new technology, shipping issues, and the ups and downs of the economy. There is a growing number of specialized repair shops in the market, which present even more places to sell your parts!

If you are interested in the Ground Transportation Sector in Panama, contact your U.S. Commercial Service office in the U.S. or Kenneth Delvalle, Commercial Specialist in Panama by email at Kenneth.Delvalle@trade.gov.