Siuma Capital advised on the sale of 100% of Petroautos S.A., the exclusive Hyundai distributor in Panama, to Sojitz Corporation, marking a significant investment in the Panamanian automotive industry.

Target Information

Petroautos S.A. is a prominent player in Panama's automotive industry, renowned for being the exclusive distributor of Hyundai vehicles within the country. Established as a key participant in the automotive market, Petroautos has significantly contributed to Hyundai's growth, increasing its market share from a mere 4% in 2004 to consistently securing the #2 and #3 positions over the past decade. At the time of the acquisition, Petroautos stood as the largest locally owned automotive group in Panama, boasting not only the distribution of Hyundai vehicles but also an integrated retail and aftersales operation, an auto insurance brokerage, and a portfolio of strategically located properties nationwide.

Industry Overview

The automotive industry in Panama has experienced significant transformation in recent years, driven by robust economic growth and increased consumer demand. The market is characterized by a competitive landscape, with several global and local players vying for market share. Automotive sales in the country have been buoyed by favorable financing conditions, rising disposable incomes, and a growing population. Furthermore, the government's focus on infrastructure development is expected to enhance the logistics and distribution capabilities of automotive companies.

With the third-largest automotive brand being Hyundai, the competitive dynamics in the sector continue to evolve. The introduction of electric vehicles (EVs) and hybrid technologies has started to reshape consumers’ preferences, enc