Peruvian Motorcycles Market has lost speed in the 2019, following three consecutive all-time records. The market declined 5.7% hit by less positive economic environment and increased taxation. However, it remains one of the largest in the World, ranking in 26th place, with over 200 brands fighting. The leader is Honda, but many brands shines, including Ronco, Italika and KTM.
Peruvian Market Overview
The motorcycles industry is a relevant sector within the Peruvian industrial production with a wide group of manufacturers active with local plant, arrived here from Japan, China and India to challenge the several local brands.
The market could be considered broken down in two different types of customer areas, with the metropolitan zone around the capital Lima, similar to the other South American metropolis, with demand for scooter, moped and tricycles for business purpose. In the rest of the country, characterized for still poor road infrastructure development, the demand is focused on off road/enduro models or ATV four wheels.
In the country the “triciclo” segment is really relevant, counting near 30% of the total 2/3 wheels market which account over 250.000 units per year.
However, we focus our activity in the study of the two wheeler industry (moped, scooter and motorbike) and in this case the industry never reached the 200k in a single year.
In the last decade the trend was positive, with volume grown up to the all-time record established in the 2018 at 181.906 units, driven by the economic development and the correlated growing demand for individual mobility both for business and leisure. As in general all Latin American people, Peruvian love motorcycles and are huge followers of the industry development and racing activities.
Remarkable the growth, the third annual in a row, considering the introduction, in May 2018, of the Impuesto Selectivo al Consumo (ISC) a new tax for all new vehicles sold for private use, with a 10% due for petrol vehicles and a 20% for diesel.
The market is one of the most relevant in South America with an annual volume stable above the 250k. This market ranks as the fifth largest in Latin America after Brazil, Mexico, Colombia, Guatemala, Ecuador and Argentina .
At Global level in the 2019 the market ranked in 26th place.
In the 2019 the Market lost 5.7%
According to data released by the Minister of Transportation & Infrastructures, in the 2019 the market was hit by not positive economic environment, losing terrain month after month ending the year with 171.587 sales (no tricycles included) losing 5.7%.
Over 200 brands are distributed in the country, while the leader is the Japanese giant Honda, with over 22% of market share, a quota lower than usual for them. The second player is a local producer, named Ronco with over 10% of share, followed by the Indian Bajaj Auto, one of the top players in Latin America.
Almost successful is the Mexican brand, Italika and the Chinese Zongshen and Lifan.
The best seller among the premium brand is KTM, which is selling near four time more than the second premium, with an outstanding score of success in recent years. KTM is helped by structural conditions in Peru, but it seems they are overperforming, considering the huge distance on all competitors and the low sales for Harley-Davidson (usually strong in South America), Ducati, Triumph, Kawasaki.