Colombia. Motorcycles market lost momentum hit by covid19

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Colombian Motorcycles
Photo by Zakaria Zayane on Unsplash

Colombian Motorcycles industry momentum hit by covid19 spread with sales fell 98% in April and 65% in May, following a year start up in double-digit. The outlook is still almost negative and the year will report a significant fall, declining below the half million units.

2020 Motorcycles Market Data & Outlook

Colombian two-wheeler industry was really in a good shape and following the last two years growth, the start of 2020 had been very positive with sales increased 10.4% and 12.3% respectively in January and February. 

Unfortunately, the arrival of Covid19 have forced the government to shut down industrial and commercial activities during March and the industry has reported the first decline, anticipating a very harsh year. In March sales have been 38.791 (-22.5%) ending the first quarter with 148.161, flat from the correspondent period last year.

In April sales have been only 205, down 98% and, after the shutdown period, in May 17.555 (-65.8%) with a very slow recovery.

Our full year projection is at 480.000 units, down significantly.

bajaj-pulsar-rs200
bajaj-pulsar-rs200

In 2019 Motorcycles sales up 6% gaining the 13th place in the World

Colombian Motorcycles industry in 2019 has been one of the few positive in the region (together with Brazil), while the most of the Latam markets have experiencing a crisis, deep in several cases.

Thanks to the current year gain and the simultaneous fall of the Argentine market, in the 2019 Colombia become the second largest motorcycles industry in South America and the 13th in the World, despite sales are not at the best level, achieved in the 2014.

Annual sales have been 612.086, up 11.3%, performing the second consecutive growing year.

The market leader was again the Indian Bajaj Auto which have sold 141.740 units, up 8.0%, with 23.2% of market share. Bajaj also holds the best-selling model, with the Boxer 100 CT.

In second place there was the Japanese Yamaha with 113.780 sales (+12.9%) followed by the archrival Honda with 104.011 (+15.6%) and AKT with 84.743 (+0.2%) at the new record level.

Behind, Suzuki with 50.917 (+18.1%), Hero with 24.697 (+15.8%), the other Indian TVS with the new record sale at 24.550 (+24.8%), the local brand Victory with 23.664 (+12.0%) and the Taiwanese Kymco with 22.959 (+5.2%).

 

Colombian motorcycles industry heritage

In the last decade the Colombian motorcycle industry was completely transformed becoming not just a lifestyle sector, as in the past, but a key factor in the private mobility, thanks to the expansion of product offer, the fall of prices, the increased care for safety and the youngest generation love.

So today there is a wider range of consumers approaching the purchase of a motorcycle to transport themselves to the university, to their workplaces or working for the new fast developing category of delivery-men, people who use motorcycles to fast deliver everything, from food to goods.

Today in Colombia over 50% of vehicles park is on two-wheeler and in average there is a motorcycles each 5 people living in the country. These data allow to explain why motorcycles are actually an important tool for Colombians, for transportation, for lifestyle and for working as well.

To achieve these outstanding performance a brilliant job has been done by the government, which has progressively changed rules to guide the sector evolution, and by the manufacturers, which have made a tremendous effort to create local facilities and produce high quality-good priced vehicles and related products such as accessories, equipment and special clothing.

In Colombia there are six motorcycle manufacturers (the oldest is active since 1942) which operate assembling in partnership with top international firms, like Honda, Kawasaki, KTM, Kymco, Victory, Yamaha, Suzuki, Hero producing both for domestic market and export.

The Colombian motorcycles market is the fourth largest in Latin America after Brazil, Mexico and Argentina.

The market grew up consistently in the decade ended in 2014, when total sales hit the highest level 694.800 units.

The country has been chosen as production hub for the Latin America by several Asian manufacturers and is not a surprise to find as market leader the Indian Bajaj Auto.