Colombia | Automotive Outlook 2025

Summary

Colombia’s automotive sector showed signs of recovery in 2024, with a 7.9% sales increase driven by utility vehicles and taxis. Domestic production declined significantly, while imports grew. Improved macroeconomic conditions are expected to further boost the sector in 2025 and 2026.

Key points

• Key points:
• The hybrid and electric vehicle market has grown significantly, representing 26% of sales in 2024, up from 11% in 2022. Globally, electric vehicles made up nearly 15% of sales in 2023, led by China, followed by Europe and the U.S. Projections for 2030 suggest electric vehicles could reach 35% of global market share. In Colombia, adoption is progressing, though infrastructure and cost barriers remain.
• China has become Colombia’s top source of automotive imports (including vehicles, auto parts, bodywork, and key assembly components), surpassing Brazil and Mexico in several segments. While China leads in total imports, Mexico remains the main supplier of vehicles, especially in the mid- and high-range segments. Globally, China has also expanded its leadership in vehicle production, accounting for over 30% of global output, driven by electric models and a highly efficient manufacturing base.
• The motorcycle market continues to expand, with 833,000 units sold in 2024—four times the volume of new car sales. The popularity of motorcycles is driven by their affordability, efficiency in urban mobility, rising fuel prices, and access to credit and financing options.
• Macroeconomic conditions have supported the rebound in vehicle demand. Falling interest rates and easing inflation have strengthened household purchasing power. Alongside employment stability and growing consumer confidence, these conditions have revived spending on durable goods.
• Automobile and utility vehicle sales are expected to accelerate in 2025 and 2026, driven by a more favorable financial environment and stronger consumer confidence. Continued job growth, real income recovery, and exchange rate stability will be key to sustaining this momentum.

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