Latin America motorcycles market in the 2019 was almost negative with sales at 3.2 million, down 6.4% from the previous year, despite the two largest markets, Brazil and Colombia grew up in double-digit. Unfortunately all the other 14 countries we track have reported a negative performance. While original outlook for the 2020 was positive, the Covid19 arrival in the region is now deteriorating all the economic indicators, severely hurting the industry
Latin American GDP in 2019 grew up a moderate 0.7%. In addition to the less favorable global context the higher uncertainty on both the political environment and economic policies in most countries of the region have affect economic activity.
Growth slowed down in all the economies of the region, with the exception of Colombia where GDP expansion converged to 3% from 2.8% in 2018. The recession was more intense than expected in Argentina and GDP grew less than 1% in Mexico, Brazil and Uruguay. Despite the expected moderation and downward revisions, Peru and Chile showed some resilience; in both growth reached 2.5% in 2019.
Motorcycles Industry Perimeter
As far as the Latin America two-wheeler market, we actually cover a wide range of 16 countries, Brazil, Bolivia, Argentina, Colombia, Peru, Guatemala, Paraguay, Ecuador, Costa Rica, Honduras, Nicaragua, Chile, Uruguay, El Salvador, Panama and Belize. So when reporting data on the region, we mean the total of these countries.
Said this, in all the Latam the motorcycles industry has a relevance both in terms of local production, when thousand people are employed in the industry, and market, as the two-wheelers still have a key rule as low-cost mobility device for millions people.
There are production plants in Brazil, Colombia, Argentina, Ecuador, Guatemala and Paraguay with over 250 manufacturers in competition.
The economic difficulties actually emerged in several countries are deeply hitting the motorcycles industry in the Latin America. The fact that top markets, like Brazil and Colombia are growing in double-digit, minimize the regional negative outlook. However, when reading data, country-by-country the fall is really impressive.
In the 2019 the new motorcycles sold in the region have been 3.2 million, down 6.5% from the correspondent period last year.
As said, the largest market in the regions is Brazil representing near 28% of total regional sales and in the 2019 was fast growing with a double-digit growth. Similar trend for the second country, Colombia which overtook Argentina which has lost 44%.
Indeed, a part Brazil and Colombia, all the others 14 markets in the region in the 2019 have lost terrain with some, like Chile, Ecuador, the already mentioned Argentina, Peru and Guatemala and the others.