This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/17/2019

Overview
Historically, Venezuela was the fourth-largest auto producer in the Americas, after the United States, Canada, and Mexico.  In recent times,  Venezuela slipped  behind Brazil, Mexico, and Argentina in Latin America  A variety of car companies historically assembled cars in Venezuela, including General Motors, Toyota, Ford Motor Company, Chrysler, Mitsubishi, Hyundai, Mack, Chinese brand Chery, and Iranian Venirauto.  Assemblers use locally made or imported chassis and engines.  Venezuela has approximately five million cars, trucks, and buses, plus a significant number of motorcycles. 

Currently, the industry is virtually paralyzed for lack of access to dollars to import parts and inability to repatriate profits.  Auto assembly declined, from 172,418 vehicles produced in 2007 to 1,774 vehicles in 2017 according to the Venezuelan Automotive Chamber (CAVENEZ),  Those vehicles were assembled by just four companies: Ford, Mack, Toyota, and FCA and represented Venezuela’s lowest output since 1962.  A lack of hard currency for imports of components is primarily responsible for the decline, which have resulted in assembly lines frequently being shut down in recent years.  Automakers also struggle with challenging labor laws and price controls.  The auto industry, like other sectors, relies on the Venezuelan government for foreign exchange.  The government owes seven major auto producers billions of dollars for unliquidated foreign exchange authorizations for imports and un-repatriated earnings according to business association Fedecamaras.  The domestic auto parts producers alone owe $400 million to international providers.

In March 2017, the Venezuelan government and the auto sector signed a plan to “re-launch” the Automobile industry called “Venezuela in Motion” (Decree 2.787, Gazette 41.122) with the intended goal of strengthening the national auto sector, specifically vehicles and motorcycle assembly, auto parts manufacturing, and related metallurgical businesses.  There has been no additional updates about the implementation of this plan and the automotive sector continues to decline.  However, the need for spare automotive parts and equipment continues to offer some market opportunities for some exporters.

Web Resources
Venezuelan Chamber of Autoparts Manufacturers – FAVENPA  
Venezuelan Automotive Chamber – CAVENEZ
 

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More Information

Venezuela Automotive Trade Development and Promotion