The Road Ahead for the Latin American Auto Care Industry

Unlock the secrets of the Latin American auto care industry's rise to prominence with insights from Evaristo Garcia, CEO of Integrate Data Facts (IDF). Discover how Stellantis is spearheading efforts to decarbonize mobility in the region and why countries like Mexico and Brazil are now major players in vehicle manufacturing. We explore the unique challenges of maintaining vehicles in diverse landscapes, from high altitudes to mountainous terrains and the critical role of medium and heavy trucks due to limited rail networks. 

Immerse yourself in the transformative impact of the Auto Care Association's ACES and PIES data standards, which are revolutionizing communication in the automotive aftermarket industry. By creating a universal language for vehicle parts, these standards are breaking down barriers for businesses expanding across Latin America. The remarkable growth of the Vehicle Dictionary across 29 countries is enhancing operational efficiency and customer experience for nearly 200 million vehicles, making the region's automotive landscape more navigable than ever before. 

Gain firsthand insights into the opportunities and challenges for companies embracing these standards in Latin America. Hear how firms like AutoZone and Amazon are accelerating their market presence by integrating vehicle data seamlessly. We also tackle the influence of global disruptions and the growing presence of Chinese automotive manufacturers in the region. With expert knowledge and exciting developments, this episode offers a comprehensive look at the dynamic forces shaping the future of the Latin American auto care industry.

To learn more about the Auto Care Association visit autocare.org.

To learn more about our show and suggest future topics and guests, visit autocare.org/podcast

Transcript

Latin American Auto Care Industry Overview

Stacey Miller 0:13

Welcome to Auto Care ON AIR , a candid podcast for a curious industry . I'm Stacey Miller , Vice President of Communications at the Auto Care Association , and this is Traction Control , where we chat about recent news from the global to the local level and what it may mean to the industry , featuring guests on the front lines . Let's roll .

Stacey Miller 0:35

Welcome back to another episode of Traction Control . Some really interesting news coming out of Frost and Sullivan , the analyst firm . Earlier this year , leading automaker Stellantis , which owns Fiat , Alfa Romeo , Maserati , Peugeot , Chrysler , Ram , Jeep , Dodge , just to name a few they announced the largest investment in the history of the Brazilian and South American automotive industry . So what was that investment ? So what was that investment ? They have a five-year strategic plan from 2025 to 2030 , which is focusing on decarbonizing mobility in the region , and it's something to the tune of over $5's automotive industry which is set to register a 4.8% year-over-year growth in 2024 . Really amazing growth . So when we saw this piece of news , we could think of no one else to talk to other than our friend Evaristo Garcia . Evaristo is the CEO of IDF Integrate Data Facts and I'd like to welcome him to the studio today . Welcome , Everisto .

Evaristo Garcia 1:47

Hi Stacey , Thank you for having me .

Stacey Miller 1:50

We're so excited to have you and you know .

Evaristo Garcia 2:00

My first question to you is why Latin America , and why is it so hot right now ? Well , I think there has been a lot of manufacturing in Latin America . Going back to your comment about Celantis building cars in Latin America , there are a lot of companies that build cars in Latin America and it's been a manufacturing hub for decades , decades In Mexico , I think you know Ford , nissan , kia , hyundai , toyota there are so many companies that build cars down there and also in Brazil . In Brazil , most of the cars are actually built in Brazil , which is kind of exceptional because , for example , mexico , there are a lot of companies that sell cars in Mexico and they're imported from China or Europe or Brazil or Canada , but in Brazil , most of the vehicles sold in Brazil are actually all produced in Brazil for the most part , which is really exceptional .

Stacey Miller 3:00

It really is . I didn't know that all of those makes were being produced in those countries . What about the aftermarket and the auto parts ? What does the manufacturing look like in Latin America from your perspective ?

Evaristo Garcia 3:12

Well , the aftermarket in Latin America is huge because the vehicle average age is relatively high . For example , a country like Mexico , the average age is around 16 years , but for the whole of Latin America the average age is around 15 years , which is really high . People tend to keep the cars a lot longer . I think you were asking me the other day about like weather in Latin America , and that helps as well . We normally , you know , in Mexico City or Sao Paulo or Buenos Aires , in Argentina , you don't get those snows that we get in the north of the US , so the vehicles don't get salt like we get here on the roads . That helps as well , so the weather is a bit milder no-transcript .

Stacey Miller 4:34

I really love that you brought up those economic indicators . So you talked about weather being a factor , income being a factor very , very different from the US . The US average age of the vehicles is something like 12.7 or 12.9 years . We said 15 to 16 years in Latin America a really long life of the vehicle , so important for that repair and maintenance . And the weather , that's also really interesting . I didn't think about the snow , the salt , but what about the road conditions in Latin America ? Like that's ?

Evaristo Garcia 5:04

that could be a factor too , right , like the actual physical roads , potholes , road trip and in general , the roads were in great condition , but also the roads were kind of flat and straight , because we have , you know , great plains in the US and if you go to Mexico or you go to Colombia , you're not going to find a straight road like that or a flat road . So I think the conditions are a factor , but the orography of the country , which means the mountains and the shape of the mountains all over the place . Imagine where you are going up from , say , mexico City that is at 7,000 feet above sea level , and you're driving 45 minutes to go to Toluca , which is another major city just outside of Mexico , and you go up to 10,000 feet . So your car needs to have brakes in great condition because there's a lot of curves . You're going to be going up and down and your brakes need to be really good and the acceleration also needs to be good , otherwise you cannot go up 10,000 feet and then come down . So I think the road conditions can be different . But I think the orography , the altitude I mean you have places obviously in Peru , like Machu Picchu , that are also very , very high , and Bogota I think Bogota is 8,000 feet above sea level . So also going around Bogota , there's a lot of ups and downs and curves and things like that . So a challenge for sure , things like that , so a challenge for sure .

Evaristo Garcia 7:04

And you can add to that the train , for example , because medium and heavy trucks are also a very important part of the aftermarket . But the moving of cargo by train , for example , in a country like Colombia the train is not as prevalent as here in the US . Here in the US , you know , you can move a train box from New York to Los Angeles and it's a relatively economic thing to do because the train is being , you know , developed for a really long time , for a really long time . But in a place that has so many mountains , like Colombia , for example , it's almost a nightmare to create that railroad network . So there is a huge reliance on cargo trucks to move merchandise all over Latin America . So , as an example , the penetration of medium and heavy duty in Colombia is like double the percent , like in Mexico , for example , because they are so important in medium and heavy trucks . So all of that , just because of the road conditions , the orography , things like that , you don't think that it impacts the way that the whole economy moves , but it really does .

Stacey Miller 8:27

Yeah , I mean it's shaping up . I didn't know that about the trains . That really are some different economic factors to consider . If there's fewer trains , there's more heavy-duty trucks on the roads . That's more maintenance opportunities with fleets . But when you talked about the wear and tear on the vehicles , they have wear and tear . It's just a different type of wear and tear . So , like the parts , proliferation and what type of parts need to be replaced more often is probably a little bit different than you would see in the US or other countries . Perhaps you know brakes . You mentioned brakes . That immediately comes to mind when we talk about going up the hills and around the curves . I'm thinking shocks and struts because you know , I come from Trinidad and Tobago . I know the condition of those roads and shocks and struts in each place all the time . Are there other parts that are more ? You're seeing them . Those replacement rates are higher in Latin America just due to the geographical nature of it .

Evaristo Garcia 9:25

I think , as you say , shock absorbers for sure , brake pads is very important . Filters , like air filters for the cabin or air filters for the engine , or fuel filters . The quality of the fuel can be different from one country to the other , so having a great fuel filter is always very important . And then fuel pumps , for example . Imagine a fuel pump is not going to work at the same rate in , you know , 10,000 feet above sea level than when it is at sea level . So those are also important , you know .

Stacey Miller 10:03

Incredibly important . I didn't even think about that .

Evaristo Garcia 10:06

Of course , because if you're in Sao Paulo and you're like at 100 degrees , your air conditioning is going to be running all day long .

Stacey Miller 10:15

Oh yeah , if you have air conditioning . I hope you do , I really hope you do .

Evaristo Garcia 10:34

I appreciate my crank windows and the ability to do that , and for all of the reasons we already said . You know the weather is much milder in much of the great cities like Mexico City , Bogota , Sao Paulo , or even Santiago , Chile or Lima , Peru . So the weather conditions allow for you to ride your motorcycle almost any day of the year , if you don't mind the rain , of course , but you're probably not going to get snow . We already said that the average per capita might be under $10,000 in most of those countries . So purchasing a really great motorcycle for $5,000 or $4,000 or $6,000 , that allows you the freedom to go to work or to go to visit your family or go to the supermarket without having to wait hours for the public transportation , it's a great business proposition . It makes a lot of sense .

Evaristo Garcia 11:46

So there are in Latin America about 220 million vehicles . Out of those , almost 75 million are motorcycles . Wow , you know you're talking about which spare parts are important . Well , one of them , for example , is helmets for motorcycles , which maybe you never thought about that as a spare part , but a helmet is important . Or boots for the motorcycles . Or , obviously , tires for the motorcycles , brakes that we already mentioned spark plugs , chains , belts I mean everything that you would think for a motorcycle the light bulbs , of course . So motorcycles are just a huge part of the environment down there and it's really important to include them in your aftermarket strategy , because if you're selling spark plugs , for example , for cars , hey , maybe you have a few spark plugs that also fit motorcycles , or you can develop just a few and you can help people that rely on the motorcycle every day in Latin America .

Stacey Miller 12:58

Absolutely . I mean 75 million . When you were starting that sentence , I didn't think the number was going to be anywhere close to that . I'm going to have to look up the stats for America to figure out how much you're in America , because I don't think it's anywhere . It's anywhere close . Yeah , I mean we talk about . You just talked about how the VIO is so different , the vehicles in operation so heavy duty vehicles being more prevalent , motorcycles and , I would assume , some other off-road vehicles like , so their parts are maybe a little bit cheaper than those that we would typically see in our VIO here in the States . Maybe .

Evaristo Garcia 13:52

Well , I don't know that they're necessarily cheaper . You need a greater variety , you need a longer shelf on your store because you're going to get a client that is coming for an oil filter for a 2023 vehicle , but you're also going to get a similar client also coming for a filter for a 1978 vehicle . So you just need like a larger catalog of parts that goes back to 1970s , maybe 1980s , for sure 1990s , so that you can cover all of your clients and pricing . I don't know . Maybe some of the older parts you can probably even demand a little bit more because they're becoming hard to find . They're almost like a classic , you know that's a little scary . 1990,'re becoming hard to find . They're almost like a classic , you know .

Stacey Miller 14:46

That's a little scary . It's 1990 . It's a classic now . Oh boy Does that mean I'm classic because I'm before . I guess we're both classic because we're before 1990 . You're a classic , stacey , you are too . So what about areas in Latin America Like it's massive ? Right , we've got Mexico , we've got Central America . South America is massive . Are there some key markets ? You talked about Brazil . Stellantis obviously seems to have a focus on Brazil . What other countries are you really seeing that are driving this kind of growth ?

Evaristo Garcia 15:23

Well , I mean the giants in Latin America for sure are Brazil , which almost has , just in light vehicles , almost 50 million vehicles . Mexico is getting close to having 34 million light vehicles . So those two countries really are very important because of the variety of vehicles they have . For example , if you go to Chile , they have every single make in the world , every single model . It's a much smaller market than Brazil it's like a tenth of the size of Brazil , but you will have diesel vehicles , you will have alcohol vehicles , you will have gasoline vehicles , you will have vehicles from China , vehicles from Korea , vehicles from any corner of the world . So medium-sized markets in Latin America , besides Chile could be Peru , ecuador , colombia , guatemala , maybe in the Caribbean , for example , puerto Rico or the Dominican Republic .

Stacey Miller 16:35

All of those are , say , more medium-sized .

Expanding Data Standard in Latin America

Stacey Miller 16:40

I mean this is a lot to digest , because it seems like if you're operating in Latin America , you need to be prepared to service probably more vehicles than you ever really knew existed and also have all the parts on your shelf , have a longer shelf , as you said . So you know we've been working with you for over . Auto Care Association has been working with you for over 10 years now when it comes to data standards , aces and PIs , and can you just explain for our audience what is it and why is it so , so important ? Because you've kind of been with us , you know , not , you know for a very long time , almost since the beginning of this project , and the coverage in Latin America has expanded and how important it is kind of to the operations of the aftermarket .

Evaristo Garcia 17:21

Well , aces and PICE is a communications protocol . This is a communications protocol and it's extremely important that we can communicate our catalogs in Mexico , or we can communicate our catalogs in Brazil or in Panama or Costa Rica or Bolivia , all over the region you mentioned . You are from Trinidad and Tobago . I mean it's awesome because now Trinidad and Tobago is also part of the ACES standard . It's awesome because now Trinidad and Tobago is also part of the ACEs standard .

Evaristo Garcia 17:53

When we started 10 years ago , as you mentioned , the Outdoor Care Association had just started building the BCDB . You know the Bay Cold Dictionary for Mexico , but it was on a relatively young age , it was not very complete yet and a lot of effort still needed to be done to make sure that the BCDB for Mexico was at like a hundred percent , which today we can say it is . And there was besides Mexico . That was the end of it . There was no ACES for Guatemala , which is the next country after Mexico . There was no BCDB for Colombia , let alone Brazil , which is so important . So today there is the BCDB .

Evaristo Garcia 18:36

The Vehicle Dictionary is available in 29 countries . So every country almost in Latin America is included . I mean Uruguay , paraguay , bolivia , ecuador , peru , even Venezuela . Some people are like hey , really Venezuela , yeah , even Venezuela and in the Caribbean Bahamas , barbados , dominican Republic , jamaica , trinidad and Tobago . So I think the Auto Care Association has made a huge effort to make sure that we can all communicate in the Americas . Whether you are in Quebec or you are in Buenos Aires , argentina , or in Central America or the Caribbean , you can communicate .

Evaristo Garcia 19:24

And I checked something that I think it's a really interesting data point . There is a key in the database that is called vehicle to engine that just tells you you know what's the vehicle name , the year , the model and also then the engine , and that's the vehicle to engine For Latin America . I think now it's like at 97,000 rows , which is incredible . I think probably by next month it's going to hit 100,000 IDs for vehicle toengine for Latin America , which pretty much means that you can catalog 90-plus percent of the Latin American market now using the ACES BCDB and , of course , there's more room to grow . It's not complete yet . For some countries , as we said , you know , bahamas or Barbados we only started research a couple of months ago , so it's pretty empty right now . In some countries it's halfway there , in some countries it's at 80% , but it is very , very robust at the moment , you can most likely catalog close to 200 million vehicles for Latin America , which is remarkable , I think .

Stacey Miller 20:51

Yeah , I mean the coverage that we've seen expand is just truly insane . It's hard to wrap your brain around , truly , how many different vehicle types there are out there , how many different vehicle parts there are out there . And then if you're a business and you're trying to expand your business beyond borders and sell these parts into new markets , I imagine it's very hard to determine . Okay , I manufacture these parts or I sell these parts . I don't know if these parts fit on these cars because they're different names , but in the end , they all might be similar chassis and they do fit . But who's demystifying that for you ? Who's translating that for you ? And I know that's where the ACEs and PIES data standard comes in and really helps us all speak the same language .

Stacey Miller 21:37

I was thinking about this the other day . I'm again the most boring person at a dinner party . When people ask me what I do or you know what is Auto Care Association most known for , I like to tell them hey , you know , when you go into AutoZone and you know you need windshield wipers for your 2018 Dodge Charger and you flip through a book or you type into a computer , you know here's my vehicle and then it tells you this is exactly the part number that fits on your car . Like we did that , like our members came together to collaborate to create that standard to make sure that you could walk into any store and know what part goes on your car . You're in and out in five minutes and you're good to go and they're like okay , yeah , that's pretty cool , you know .

Stacey Miller 22:16

But the other , the other way I was thinking about it was you know , language we talk about standards is a common language and you know , maybe not everywhere in the world , but you could go to most places in the world and say hello and people know what you're saying . But there are some places where you might say that and it's a different language and you don't know what that is . Aces and Pies helps tell you , tells you this word means hello , in whatever language that may be . So I try to explain it that way to people . I don't know if it's a good analogy , but it seems to make it click with some of my non-automotive friends .

Evaristo Garcia 22:53

Even I understood , Stacey , the way you're explaining it . I'm like , yeah , that's exactly what we do .

Stacey Miller 22:59

It's such an important piece of the puzzle .

Jonathan Larsen 23:02

Hi . I'm Jonathan Larson , Vice President of Digital Products and Standards of the Auto Care Association . Are you getting the right part to the right place at the right time ? If you're not utilizing the Auto Care Association's ACES and PIES data standards , you're not only wasting money , but you're probably duplicating your efforts . Schedule a consultation at autocare . org forward slash standards to learn how to lower your supply chain costs , increase your speed to market and reduce your returns with ACEs and PIEs . We look forward to hearing from you .

Latin American Auto Care Industry Feedback

Stacey Miller 23:34

And I mean do you think that you know companies today are taking advantage of the opportunities in Latin America , or is there just a lot more exploration that needs to be done ? I mean , how prominent are some of these companies getting into Latin America ?

Evaristo Garcia 23:51

I think that the standards , you know , is a communications protocol in a similar manner as your cell phone and you know it was probably designed in mind , as you say , with the members of AutoCare , mainly in North America in mind , as you say , with the members of AutoCare , mainly in North America , with the idea of going into Latin America . And of course , I do see a lot of companies . I mean Autosum , for example . You know they built 800 stores in Mexico and obviously they're using Aces and Pies in Mexico or I think in Brazil they built already over 100 stores , something like that . I think in Brazil they built already over 100 stores , something like that . There are other companies like Amazon in Mexico using ACES and PICE and a lot of companies that are manufacturers of anything from a spark plug , a rotor , a muffler , you know , tires , etc . Already using the standard . The adoption in Mexico , I think , is really really high 70 or 80 percent and it's growing all over Latin America . But also a few companies from Latin America are like coming to the US and starting to use ASAM pies and maybe they're from Argentina or maybe they are from Brazil or maybe they are from Mexico and they're coming to the US and selling their parts from Latin America here in the US , taking advantage of what you mentioned , the common language of aces and pies Autosun store , or you go to whomever is your favorite , you know parts store and you're looking for a part for your car .

Evaristo Garcia 25:32

Well , something that we do a lot is use the VIN number . You know the serial number in your car . I think something that is super cool about the Auto Care Association is that it allows companies , for example , that build VIN decoders , to use this standard to help build applications , for example , vin decoders that you can then utilize to help consumers to find their vehicle , because most consumers they're not sure about their model year . Or , you know , they say they have a Ford Cherokee or they have a Jeep Explorer . They're not sure if the engine is a 4.0 liter engine .

Evaristo Garcia 26:18

Do I have the turbo engine ? I'm not sure . Is this engine flex or is this engine gasoline ? Is this engine flex or is this engine gasoline ? Well , so Auto Care Association allows service providers or software providers to catalog the data , et cetera , and there are people like that , obviously , in the US , in Canada , but now that kind of usage is beginning to pop up in Latin America , which I love it because it's creativity using the standards by a software provider in Argentina or a software provider in Ecuador or a software provider in Mexico , and that's really cool .

Stacey Miller 27:14

That is really cool . I mean , just the ingenuity that we find in this industry is pretty . I mean , this is such a perfect example . We don't know what car it is , so we're going to take these data points and decode them in order to tell you what it is . We don't know what car it is , so we're going to take these data points and decode them in order to tell you what it is . We don't speak the same language when it comes to the parts , so we're going to create a common , unified language .

Stacey Miller 27:34

Like . We're just like a bunch of problem solvers and tinkers and I just , I just love that . It just fascinates me some of the solutions and the solution providers that come out with new products every single day in this industry . But this is probably just like one of my favorite because the more you get into it and the more you learn what it enables . You know for me personally as a driver , how easy it makes you know things for me to repair and maintain my car , and then what it enables in the industry . It's such a cool story I mean total , total nerd about . So I have to call you you're like I'm going to crown you just like Mr Automotive Aftermarket Latin America , because you were just truly the ambassador for the Latin American auto care industry and you're , you know , every single week I see you .

Stacey Miller 28:23

You're speaking in Mexico , you're in Panama , you're in Brazil advocating for these standards , telling companies hey , if you implement these standards in your market , you're going to be able to sell these parts at lightning speed , you're going to be able to better serve your customer . And you know some of the numbers that you shared . We're seeing a lot of uptick from that , lots of adoption in Latin America and then lots of coverage to ensure that adoption thanks to your work . So you know one . I want to thank you for that . But two , you know , as you're out and you're speaking to these crowds in Latin America , I mean , what's the feedback that you get from some of these companies as you're introducing ACEs and PIEs to them and they're implementing it in their business ? What did they tell you ?

Evaristo Garcia 29:06

and pies to them and they're implementing it in their business . What did they tell you ? Well , first , thank you for that mention , stacey . I really love aces and pies . I think it's very , very important for Latin America and , as you say , it does enable much better and much efficient business for everybody . Yeah , this year I was in Panama , I was in Brazil , colombia , mexico , I think that's it and I had a few conversations with people in most countries of Latin America . It's really surprising , because when we started this journey of trying to evangelize people in Latin America , to let them know , share the good news of aces and pies and how that helps your business , 10 years ago it was like pieces Pies . How do you eat that ? You know , I mean people have no idea .

Evaristo Garcia 29:55

Yeah , people had no idea what you were talking about . And then you would say , well , it's made by AutoCare and they're like who's AutoCare , what are you talking about ? Because really the brand didn't have the recognition like it does in the US for ACES , for Pythes , for AutoCare .

Automotive Industry Dynamics in Latin America

Evaristo Garcia 30:13

But now I go to some of these places , I make a presentation and the very first question is so Evaristo what do we need to start doing the XML file ? The questions 10 years ago were so basic and they were so challenging because there was absolutely no knowledge .

Evaristo Garcia 30:33

But today some people even lose their patience with me because they're like Aristo I got it , I understand it's electronic files , it's to do catalogs , et cetera . How do I start doing my XML ? How do I start doing my PIS sheet ? How do I start doing my application to the BCDB ? I mean , people are much more aware of why this is important . They're much more aware of exactly how it works . And I can tell you the questions that I get on some of the presentations , some of the seminars , are of much higher level and they are much more challenging than they used to be 10 years ago , which of course bring them on . I'm really happy that that's the case , because the questions are no longer basic . They're great questions .

Stacey Miller 31:22

So Latin America has a much deeper understanding of these standards , and they're all in is what it sounds like .

Evaristo Garcia 31:29

Yes , and I think people have understood that . Being able to communicate your catalog , you know , your parts , your price list , whatever , in a standardized manner , it really drives business . Some companies have published data saying you know , if you have your data , you have good pictures , you have it mapped to ACES , etc . Then it reduces devolutions or returns by you know , 80% or something like that , which , in Latin America first , is very , very important .

Stacey Miller 32:03

So huge , huge returns are a big deal in our industry , right , especially fraudulent returns . So that's a podcast for another day , but we've definitely got to touch on that . I have another question for you , and this one's a little off the cuff , but I was thinking about some of the more recent things that we've experienced , like these black swan events . Right , the boat is blocking the Panama Canal , there's a port strike . All these things are happening that are impacting the import of auto parts , and you know we really looked at it from a US perspective . But you know , over the past couple of months , or maybe the past , you know , two to four years , has Latin America experienced , you know , interruptions to the scale that we have in the US , or is it a little less because of the fact that there's , you know , manufacturing in those countries ?

Evaristo Garcia 32:55

Yes , I cannot say that I remember any major interruption of manufacturing in any of those countries . Of course , as an example , mexico or the Caribbean do suffer from hurricanes and things like that , but normally the manufacturing of parts is not by the side of the ocean , so normally that's not impacted by hurricanes , which of course are tremendous powers of the nature . But I can't remember any other thing . I mean , of course , covid , but now it seems like COVID was 100 years ago , but it was only five years ago , right , but other than COVID , for example , I don't see any other Black Swan event , like you mentioned , slowing down Latin American production or manufacturing of parts . Of course there is something we haven't mentioned in this podcast yet , which is , for example , competition from a gigantic power of the world which is China , for example . They have enormous economies of scales and they can produce a million parts maybe in one day , where maybe a factory in a medium-sized Latin American country needs a year to produce a million parts that they can produce in one day . So likewise , there are , for example , chinese vehicles coming into the Latin American market at a much higher rate than they used to be , and you have to be careful because it's like recent , you know the last , maybe four years .

Evaristo Garcia 34:48

The last five years , for example , in Mexico in 2017 , 2018 , 2019 , chinese vehicles were entering the market at 1% of the new vehicles . Prior to that , there was also almost no Chinese vehicles in Mexico , but now , lately , the new vehicles that are coming from Chinese makes into Mexico maybe are 10 or more percent of the new vehicles . Now the VIO for Mexico is about 33 million vehicles or something like that for the light vehicles . Now the VIO for Mexico is about 33 million vehicles or something like that for the light vehicles , but that's vehicles from 1961 to like 2024 . So if the model year 2024 or 2023 has 10% of Chinese makes , well , in the big pie , chinese makes still are a very , very small slice of the pie , even though the trend is changing . But it will take a few years for them to become a larger piece of the pie . So that's an important change .

Evaristo Garcia 35:58

In some markets , like I say in Brazil for example , most of the vehicles sold are domestically produced and I think it's only like 1% of the vehicles down there that are Chinese makes . But you have other places , like Chile . It's almost 30% of the new vehicles that are from China . I mean MG , eaic , byd , jac , you know Chang'an , chang'e . I mean , the list is just so long , it's crazy .

Stacey Miller 36:31

I don't think I've heard of any of those . Do you know what's causing the influx in the Chinese vehicles in the market ?

Evaristo Garcia 36:40

the influx in the Chinese vehicles in the market . Well , I guess , similar to anything , whether it's a spoon or a keyboard or anything , I mean , the manufacturing capability of China is really huge and now they have reached overcapacity , probably domestically , and they're able to export . And most of these markets in latin america are open and allow imports even if you don't produce locally , which , uh , obviously challenges , uh , the few countries where there is local production . Um , so , I would think that's it . And their vehicles now they're okay , you know they are . I've been on a Mexico City . You go on an Uber and a lot of those are like electric BYD vehicles , which I've been on several times , and I've been on a couple of Ubers that I look at the car , I'm like I have no idea what this car is . I mean , what you just mentioned , I never saw it before .

Stacey Miller 37:43

Are they cheaper than the other cars in the market ? I'm trying to wrap my brain around . You know , one is 10% , one is 30% and growing . Why are they so attractive ?

Evaristo Garcia 37:54

Yeah , they do play in multiple segments , but yes , they tend to be much cheaper than the similar vehicles of the segment and at least at the beginning they look okay . So let's see what happens after five years . You know , we don't know . We don't have a 10-year test of a BYD in Mexico . We don't have a 10-year test of a jack vehicle in Mexico or a BAIC or whatever . So let's see . Only time will tell how good they are after 10 years or five years , etc .

Evaristo Garcia 38:30

Finding spare parts can be a challenge , so some of the dealers that sell you those vehicles not always have all of those spare parts . Like you know , you buy a car , you need a spark plug or you need an oil filter or you need something maybe more sophisticated , like the cap for your radiator , which is nothing out of this planet . And sometimes they don't have these spare parts because they brought the vehicle from China but they didn't bring all of these parts . Parts because they brought the vehicles from China but they didn't bring all of these parts . Slowly they are beginning to open parts centers , but not at the same speed that they are bringing new vehicles .

Stacey Miller 39:12

Yeah , that's a lot of ground to cover as a new entrant into a market that's so large to have the parts stocked on the shelves , and what are the replacement rates of those and the longevity of those vehicles to wear and tear ? I'm also looking forward to seeing how that pans out over the next five to 10 years . That is absolutely fascinating . So I think I just have one final question for you , and that is you know , what ? Is there anything about the Latin American auto care industry that most people don't know about , or something that you wish more businesses knew about from all of your time and all of your research there ?

Evaristo Garcia 39:51

Well , I think it's very similar . It sounds like it's very , very different , but it's actually very similar . I mean , we have inventory challenges , like there are all over the world . There are cataloging challenges , like there are all over the world . I think maybe one of the messages is if you haven't checked ACES and PICE for Latin America lately , you better do it , because I think in November we reached the 100,000 rows of the vehicle to engine table for Latin America , which is fantastic , and maybe the translations for ACS and PICE that work really good for Latin America . And , as I said , the understanding of the cataloging processes in Latin America is surprisingly great , which I was not expecting in the last couple of years . When people ask me those questions , sometimes they catch me off guard . I was expecting a more simple question , but they come up with great questions . So the whole understanding , I guess , of the cataloging process in Latin America is really great and the thirst to make this work is also there . So there are too many things to talk about , stacey , sorry about that .

Stacey Miller 41:11

Maybe we need to do a part two .

Evaristo Garcia 41:13

Yeah , we probably need a part two . Yes , Fantastic . Fantastic . Well , alternatively , I want to make sure that people have at idfactscom whatever they want . I mean happy to speak with them . So yeah , there are multiple ways and I always attend a lot of the events of the industry , so that too .

Stacey Miller 41:55

Well , we are really looking forward to it . We thank you so much , evaristo , for all of your time and your expertise in this market . We hope that we help demystify some of the things that are happening there and examine some of those trends , and I think there's going to be more for us to talk about . So if you're interested in anything standards related , you can always visit autocareorg slash standards . We've got tons of resources on Latin America , including the Latin American databases which you can purchase . There's translations , there's courses on how to do it in Spanish , thanks to Evaristo , so you can always find that at AutoCareorg . Thank you so much , evaristo . Thank you so much Stacey .

Stacey Miller 42:35

Thanks for tuning in to another episode of Auto Care ON AIR . Make sure to subscribe to our podcast so that you never miss an episode , and don't forget to leave us a rating and review that helps others discover our content . Auto Care ON AIR is a production of the Auto Care Association , dedicated to advancing the auto care industry and supporting professionals like you . To learn more about the association and its initiatives , visit autocare . org .