LAS VEGAS (Oct. 31, 2007) — The international market for automotive parts is poised for significant growth, as Russia, China and developing countries around the world have begun importing American automobiles. U.S.-based companies hoping to export their products overseas often find it challenging to identify prospective distribution partners in other countries, but there are a number of industry and government resources available to help make these connections.
According to Anthony Cardez, executive director of OAC, U.S. parts exports reached $58 billion in 2006, and will only continue to grow. U.S. parts manufacturers stand to profit significantly in developing markets where car ownership is low, but demand for U.S. automobiles is growing.
"We must diversify where we sell, who we sell to, and how we sell," Cardez told the audience, which included OAC members from several countries.
Cardez provided an overview of the OAC's member services, which include access to market research reports, discounts to industry trade shows, and "matchmaking" services to help connect members with potential buyers.
"We have a network of contacts in 50 countries," Cardez says. "Our goal is to put a buyer in front of you that can help you increase your business."
The U.S. Department of Commerce's Commercial Service also provides exporters with a number of services via their assistance centers across the U.S. and abroad. The agency provides free research reports on specific countries and industrial sectors, as well as paid reports on specific markets and companies.
Among the more popular services the department offers, though, are fee-based networking services. Through the Gold Key Matching Service offerings, the agency will help set up meetings with potential distribution partners overseas, to which can save significant time and expense for exporters.
Information on export assistance programs is available online through a federal Web site that offers export assistance programs.
The Commercial Service also promotes U.S.-based trade shows (including AAPEX and SEMA) through their overseas agencies, and brings groups of buyers to the U.S. to attend these shows. At the current AAPEX show, for example, Commercial Service representatives are leading delegations of buyers from Kuwait, Austria, Russia, Spain, Turkey, The Netherlands, Saudi Arabia, Ukraine, Jordan, Mexico, Honduras and nearly a dozen other countries.
One of these delegations is being led by Alexander Kansky, a commercial specialist who works with the U.S. Consulate General in St. Petersburg, Russia. Kansky described the market opportunities for the U.S. automotive industry in Russia, where there are currently only 157 cars per 1,000 population. Auto sales there are expected to grow from $33 billion in 2006 to $50 billion by the end of 2007.
"You cannot ignore Russia," Kansky says. "There is significant room for growth, and a preference for foreign automobiles."
The Russian government has reduced or eliminated import taxes for OEM and Tier 1 parts manufacturers to help meet the growing need for parts. Foreign automakers, including The Big Three, have made significant inroads in Russia, and are overtaking that country's domestic auto manufacturers.
OAC is providing a networking lounge for current prospective members in room 201 at the AAPEX conference. For more information, visit the organization's Web site.
About the Author
Brian AlbrightBrian Albright
Brian Albright is a freelance journalist based in Columbus, Ohio, who has been writing about manufacturing, technology and automotive issues since 1997. As an editor with Frontline Solutions magazine, he covered the supply chain automation industry for nearly eight years, and he has been a regular contributor to both Automotive Body Repair News and Aftermarket Business World.