2005 was a record year for motorcycle sales in Colombia. 270,000 motorcycles were sold throughout the country. This activity can be attributed to an increase in fuel prices, vehicle reduction programs during peek traffic times in main cities, and traffic jams. Also, due to Colombia’s currency revaluation during 2005, motorcycle imports increased, which helped to increase the local demand for those imported products. Additionally, local banks are offering loans with low interest rates, which favor the
buying decisions for new imported motorcycles.
The demand for automotive diagnostic equipment is evident, taking into consideration that the average lifespan of most of the 3.3 million motor vehicles running in Colombia is twelve to fifteen years. Another factor favoring the diagnostic equipment market is the fact that approximately eighty percent of cargo and passenger’s transportation in Colombia is done by land. The high prices of vehicles and their long lifespan, as well as the poor condition of most roads in Colombia, present quite a challenge for keeping the vehicles in good mechanical condition. The approximately 80,000 motor vehicles produced annually by the three major Colombian assembly plants create a demand for after-market service.