The main spokespersons for the automotive sector spoke about the future of the industry in Colombia, after the closure of Colmotores, a General Motors plant in Colombia.
Little by little, the engine of the automotive industry in Colombia has been turning off. The closure of the Colmotores assembly plant recalled the uphill climb that they had been facing in this industry.
“We had Mazda and it left, Mercedes Benz and it left, and now Colmotores. Then there are Sofasa (Renault) and Inno,” said Camilo Llinás, president of Acolfa.
The causes have been China’s offensive as a large producer, the pandemic, inflation and, of course, the economic opening.
In Colombia they were assembled 120,000 vehicles per year at its peak. This year they expected only 30,000, but now there will be many fewer. A decade ago, the country produced 70% of the cars that Colombians bought.
How many new vehicles were sold from 2014 to now?
In terms of sales it has not been easy either, the figures show a drop from 2014 until now:
- 2014: a peak of 310,000 new vehicles.
- 2020: in pandemic fell to 188,000 new vehicles.
- 2023: the figures fell to 186,000 new vehicles.
- 2024: this year they are expected no more than 160,000 new vehicles.
The consequences will come for the 433 dealerships in the country, representing 54 vehicle brands and generating 190,000 direct jobs.
“When volumes go down and a seller who previously sold 10 cars a month and, due to market reasons, is now selling five, what are you doing? Either he leaves or they kick him out,” said Pedro Quijano, president of Aconautos.
Recently, 35% of car parts were produced in Colombia, This includes tires, batteries, upholstery, glass, wheels, electrical components, plastics, spark plugs, springs, shock absorbers and many more parts.
Strategies must be sought to accelerate production and guarantees for the marketing of cars in the country.
“We have just announced the investment of 100 million dollars in the industrialization of a new product in our Envigado plant, that production begins at the beginning of next year,” said Ariel Montenegro, president of Renault Sofasa.
And Camilo Llinas pointed out that, first, we must “seek markets abroad. We need to be so as not to depend only on the internal market and we also need internal measures so that the consumption of national vehicles can grow.”
Colombia has the potential to sell 500,000 vehicles per year. Promoting the recovery of this sector is urgent and necessary, since, despite the eventful recent history, it is still represents 7% of GDP.
