Argentina. First Half 2020 was the worst out of 25 years

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Argentine Motorcycles Market
Gilera Motor

Argentine Motorcycles Market scored the first positive month of the year in June, when sales figures at 23.029 reported a +7.5%. First half 2020 was deeply negative with total motorcycles sales at 111.505, down 41.3%. The outlook unchanged and is negative with the year projected down 26%.

2020 Motorcycles Market Data & Outlook

The financial and economic crisis which invested the country in the last two years have severely hit the motorcycles industry with sales and production dropped down.

The trend was again negative in the 2020 with sales declined by 38.4% and 34.4% respectively in January and February. In March, the country was still not influenced by constraints due to the fight against Covid19, which was not yet addressed with strong actions. However, sales kept declining with the monthly sales at 19.774 (-38.8%), ending the first quarter at the lowest level out of the last 20 years, with only 67.954 sales, down 37.3%.

According to data released by the Argentine Minister of Infrastructures and Transportation, in April, due to the shut down of commercial and industrial activities, the market lost 85.4%, while with the progressive reopening of activities, May was a bit better (-39.6%).

Only in June figures were positive with 23.029 sales, up 7.5%.

Of course, the first half was deeply negative with total motorcycles sales at 111.505, down 41.3%

Market Outlook 2020-2025 is steady

In the Beyond Covid19 project, we are revising on monthly basis and sharing with our Clients the 2020-2025 motorcycles market outlook. Demand for a more individual mobility and the increased offer of more performing electric scooter is speeding up the industry trend.

The June recovery was expected and has not changed our market outlook, which is confirmed for the full year 2020 with a total sales projection of 210.000 units, down 26.7%.

In 2019 Argentina was the worst motorcycles market in the World (considering the Top 50 markets) as year-on-year score and the sales level was the lowest out of  last 20 years. Within the Latin America region, Argentina was overtaken by  Colombia  while Peru  which is now very close, despite a not positive trend.

Best selling Brands

As far as regard the competitive landscape, after having conquered back the leadership in the last months of 2018, the Japanese Honda is now creating a huge gap over all the others competitors, ending the 2019 with 81.664 sales (-29.5%), the less negative score among the top 5 brands.

In second place the local brand Motomel, which overtook Zanella by few units, selling 46.760 units (-40.6%), holding 13.5% of market share.

In third place the other the local manufacturer, Zanella, which was leader for 8 consecutive years before to lose the head of the market in 2018. Actually Zanella struggles losing 60% in the 2019 with 40.399 units sold.

In the 2018 Zanella has celebrated the 70 years from the foundation. Originally an assembly company for auto produced by Peugeot and Fiat, entered the motorcycles sector at the end of the ’50 of last century, affirming their products as leader in the domestic market and exporting in the entire South America. Zanella was market leader in Argentina between the 2010 and the 2017.

Looking back at the ranking, in 4th place there was Corven Motors with 39.991 sales (-37.3%) followed by Gilera with 24.990 (-33.4%), Keller with 23.521 (-10.5%) and Yamaha with 21.767 (-56.3%). 

In the market there are over 50 brands, including the Indian Bajaj Auto, actually in 9th place, and Hero, in 19th.

Since 2017, the premium brand segment is led by  KTM which sold 2.679 units in the 2019, down 16.5%.

Argentine Motorcycles Market
motomel M8