Indonesian Spare Part Products Compete To Enter Mexico Market, Reach Transaction Potential Of US$4.07 Million

JAKARTA – Indonesian spare parts products have succeeded in attracting visitors to the Expo INA PAACE Automechanika Mexico 2022 in Mexico City.

Through this exhibition, Indonesia can introduce spare parts products to the Mexican market.

In the activity which took place from July 13 to 15, 2022, Indonesian products managed to reap potential transactions of up to 4,074,200 US dollars.

“Indonesian products have reliable quality and competitive prices so they can compete with products from other countries. It is hoped that Indonesian spare parts products can penetrate the Mexican and Latin American automotive markets, where competition is very tight," said the Indonesian Ambassador Extraordinary and Plenipotentiary to Mexico Cheppy T Wartono in a written statement, Tuesday, August 2.

The trade in spare parts products in Mexico is one of the largest in the world, reaching 40 billion US dollars.

This value is a big cake that must be enjoyed by auto parts manufacturers from Indonesia.

Cheppy said, if Indonesia could enjoy 5 to 10 percent of the cake, the Indonesia-Mexico trade would experience a significant increase.

However, the challenge is that the importers of spare parts in Mexico do not know and are not familiar with automotive spare parts products from Indonesia.

Furthermore, Cheppy said, it was proven when Indonesia offered to one of the largest motorcycle manufacturers in Mexico Italika through a virtual meeting, only two companies were selected.

However, continued Cheppy, when other companies from Indonesia participated in the exhibition and were invited to Italika, it turned out that other products were also in demand.

“This proves that Indonesian products are not widely known. There is a saying, don't know, don't love. Therefore, the Indonesian Embassy and ITPC Mexico City are trying to encourage companies in Indonesia to be more aggressive in entering the Mexican and Central and South American markets,” said Cheppy.

Expo INA PAACE Automechanika Mexico 2022 held by Messe Frankfurt GmbH is the largest automotive sector exhibition in South America. This exhibition has been visited by more than 30 thousand visitors and attended by 30 countries.

A number of Indonesian companies participated in the Indonesian pavilion through the facilitation of ITPC Mexico City in the INA PAACE Automechanika Mexico 2022 exhibition. First, PT Aneka Komkar Utama (AKKU) promoted rubber and anti-vibration products for both the OEM (Original Equipment Manufacture) and after sales markets.

Second, PT Astra Otoparts which promotes tire products for motorcycles, cars, commercial vehicles as well as batteries for vehicles and other spare parts.

Finally, Garuda Metalindo promotes fasteners (nuts and bolts) for the automotive industry and other industries. Fourth, PT Indoprima Gemilang which promotes friction products (brake pads, brake shoes, and brake linings), gaskets, and springs for the automotive industry.

In addition, the Head of ITPC Mexico City, Husodo Kuncoro Yaakti, said that his party is also cooperating with Sakura Filter Mexico as a distributor of Sakura brand air filter products from Indonesia.

According to Kuncoro, Indonesia's participation in this activity is one of the efforts of the Indonesian Embassy and ITPC Mexico City to encourage Indonesian spare parts companies to enter the Mexican and Latin American markets.

“The potential of the automotive sector is huge, with around 4 million vehicles being produced annually in Mexico. In addition, of course Mexico is a major supplier of vehicles to the United States and Latin America," he explained.

For your information, during the exhibition, visitors kept coming to the Indonesian pavilion, interested in the various products being promoted.

Spare parts retail companies as well as participants from other countries, suppliers and workshop owners also visited the Indonesian pavilion.

Even after the exhibition was over, exhibitors had the opportunity to visit Italika as one of the largest motorcycle manufacturers in Mexico to present their products.

The total non-oil and gas trade between Indonesia and Mexico in the period January to May 2022 was recorded at 790.9 million US dollars, an increase of 38.7 percent compared to the same period the previous year.

Of this value, Indonesia's exports to Mexico amounted to US$652.8 million. Meanwhile, Indonesia's imports from Mexico amounted to 138.1 million US dollars.