Brazil. In April Motorcycles sales collapsed 94% despite Bolsonaro’s crazy approach to Covid19

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Brazilian Motorcycles Market
Brazilian Motorcycles Market

Brazilian Motorcycles Market collapsed in April reporting one of the worst performance worldwide, losing 94%, despite the government resisted to take any serious actions to counteract Covid19. Indeed, while Bolsonaro’s approach has been to “deny and defy”, people decided to stay home and consumptions dropped down.

In April, motorcycles sales collapsed

Following the double-digit increase reported in the previous year, the Brazilian motorcycles industry started the 2020 with a reduced speed having lost in February (-1.2%) and March (-0.3%) the good advantage taken in January (+12%) ending the first quarter with a volume of 276.759, up 3.1%.

Like ally and US President Donald Trump, Bolsonaro has repeatedly sought to minimise the pandemic, first dismissing it as “fantasy” and then just “a little flu”.  Bolsonaro’s messaging surrounding the pandemic makes one thing clear: He favours an “economy first” approach to tackling the crisis; calculating that the number of deaths will be less costly than the inevitable recession caused by economic shutdown.

However, the regional and distrectual authorities found the huge impact of Covid19 in the real life and were forced to apply the approach recommended by the O.M.S. and have decided to shutdown the most of the activity. People by themselves, ignored the messages from the President and decided to stay home. 

The results for our industry was above any expectations and the sales in April dropped at the third deepest fall in the World after India (-100%) and Italy (-97%) with a -94.2% with only 5.173.

The difference between Brazil and Europe is that the Covid19 is still fast growing here and the recovery curves will be longer than in almost all the rest of the World. 

Analyzing the potential evolution of the pandemic scenario in Brazil, we see motorcycles sales declining 27.7% this year (thanks t the positive Q1) at 784.000 units. However, differently from the evolution curves actually foreseen for the most of top countries which have immediately counteracted the covid19 evolution, the Brazilian market will stay in negative territory in the 2021 as well.

Brazilian Motorcycles Market
Triumph Street Cup 1.3 2017

In 2019 sales up 12% at 1.07 million units, ranking 8th in the World

Brazilian 2-wheeler market is the largest in Latin America and one of the Top 10 in the World. Hit by the economic crisis in the 2014, the market had fallen down rapidly from 1.59 million units achieved in 2013 to  814.440 in 2017.

However starting in the 2018 the market has approached a positive pathway, still in place, fuelled by the growing internal demand. According to data released by the Brazilian Minister of Transportation, the total motorcycles, scooters and ATV sales in the 2019 have been 1.072.391,  up a robust 12.0%, the highest level in the last four years.

At the end of 2019, Brazil ranks as the 8th largest motorcycles market in the World, ahead of Mexico and Taiwan, and a step back to  Thailand and Pakistan.

United States Motorcycles Market

Best selling Brands

For 40 years this market has been literally dominated by the Japanese Honda which ended the 2019 with over 80% of market share, with 775.617 sales. Moto Honda da Amazonia Ltda. (HDA) started operating 43 years ago (November 1976), opening a local plant to produce the CG 125 model with an initial capacity of 2.200 units per year. However, the actual production was close to 1 million units, while the entire production accounts for 25 million units.

In the 2019 Honda sales have been 870.023 (+11.3%) with an impressive 82% of market share.

The second best brand was Yamaha selling “only” 147.302 units (+8.0%) ahead of Suzuki with 11.961 sales (+28.5%) and followed by the best premium brand, BMW with 9.442 units (+24.3%).  

Triumph kept growing (+11.1%), while Harley Davidson gains 2.7% and Ducati accelerates after a slow start, with sales up 44%.