PANAMA AUTOMOTIVE AFTERMARKET MARKET

Panama automotive aftermarket present significant opportunities, with over millions of passenger vehicles are currently out of warranty in 2023, and the passenger cars with an out of warranty population is projected to grow at a robust CAGR from 2023-2031.

Major Panama Automotive Aftermarket Market Drivers and Emerging Trends

There has been significant growth in Panama automotive aftermarket owing to a surge in number of OEMs and dealership across the region, multiple government initiatives, and rapid infrastructure expansion.

The industry is vital in Panama’s economy and the market is experiencing sustained growth post-covid, which in 2023, passenger car sales surged to 49,000 units. The remarkable growth is driven growing demand for vehicles in Panama coupled with rising per capita income. In 2023, Panama’s per capita GDP is USD 15,643, making it categorized as a robust middle-class economy by the World Bank as it enjoys a higher standard of living and quite moderate inflation compared to other American countries. In addition, positive economic situation and seamless accessibility to financing further drives the growth of Panama automotive aftermarket industry. 

Majority of automotive aftermarket parts in Panama are imported from the United States, South Korea, and China, with the US holds the largest market share of over one-third. Panama automotive parts aftermarket from the US will keep increase as there is a strong demand for US-produced auto parts and accessories such as batteries, body parts, exhaust components, among others.

Panama’s vehicle sector experiences fragmentation in its supply chain, driven by its small market size and diverse brand availability. The United States, Japan, Thailand, and South Korea emerged as the main contributors to vehicle imports. Furthermore, while all major Original Equipment Manufacturers maintain a presence in Panama, the automotive market is primarily dominated by Asian companies such as Hyundai, Toyota, and KIA. While the Chinese Original Equipment Manufacturers are rapidly expanding, they are not currently positioned at the top of the rankings.

This market is witnessing immense opportunities, as there is a surge in the construction activities in Panama, with an investment around USD 15 billion exclusively for public sector initiatives, alongside the Panama Canal expansion endeavor and numerous private commercial and residential projects, which present valuable opportunities for US exporters specializing in auto and truck parts. In 2012, the government replaced the entire bus fleet that served Panama City while continuously imposing stricter regulation for car inspections, which has fueled a surge in demand for automotive parts. However, the inventory shortages, supply chain disruptions, semiconductor scarcities, surging car prices, and high loan interest rates can be the challenges that may hamper the growth of Panama automotive aftermarket.

Segments covered in the Report:

The Panama Automotive Aftermarket Market has been segmented on the basis of certification, vehicle type, replacement part. Based on the vehicle type, the market has been segmented into commercial vehicles and passenger vehicles. By replacement parts, the market is segmented into tire, brake parts, battery, Lighting Components, filters, electronic components, Lubricants, Engine Components, Clutch Parts and others. Based on certification, the market has been segmented into Genuine Parts, Counterfeit Parts, Certified Parts and Others.

Market Segmentation

Panama Automotive Aftermarket by Vehicle Type

• • Commercial Vehicles
  • Passenger Vehicles

Panama Automotive Aftermarket by Replacement Parts

• • Tire
  • Battery
  • Brake Parts
  • Filters
    • Air Filter​
    • Oil Filter​
    • Others​
  • Lighting Components​
  • Electronic components​
  • Lubricants​
  • Clutch Parts​
  • Engine Components
    • Timing Belt​
    • Spark Plugs​
    • Others​
  • Others

Panama Automotive Aftermarket by Certification

• • Genuine Parts
  • Certified Parts
  • Counterfeit Parts
  • Others