Argentina. July motorcycles trend fully mirrors the grim economic condition

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Argentine Motorcycles Market
Gilera Motor

Argentine Motorcycles Market turned negative again, despite the previous month’s positive result. July scored a double-digit loss (-23,7%) with 23.410 units, leading to YTD July sales at 130.905, down 39,4%.

Two-Wheeler market in July

From the 18th of July, lockdown restrictions were gradually lifted with a progressive restart of the activities. However, Argentina is still facing Covid19 challenge and the economy is expected to shrink in 2020.

Indeed, despite the previous month’s positive trend, two-wheelers sales turned negative again in July. Argentinian new registrations were 23.410 all over the month, down 23,7%. This double-digit fall leads to YTD July figures at 130.905, down 39,4%.

Rearranging data by categories, both Motorcycles +50 and Scooters +50 are closing matching the YTD market trend, falling down 39,4% and 39% respectively.

Our analysis related to CC-Class differentiation reveals a strong growth (+114,6%) of 2-50cc and an interesting positive trend of the electric class (+62,5%).

Brand-wise, Honda is leading the market with 32.165 units YTD (-33,6%), followed by Corwen, who is falling at the same pace, with 16.750 units. Motomel, placed third, recorded 16.441 units (-43%), Gilera with 12.954 units is down 18,5%, Yamaha with 9.067 units (-33,5%) and Keller with 8.732 units (-40.3%).

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%).

In June figures were positive with 23.134 sales, up 9.3%.

Of course, the first half was deeply negative with total motorcycles sales at 107.495, down 41.8%

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.

July negative effect on the outlook of the market drives the full 2020 sales projection at 238.000 units, down 25,5%.

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.

Argentine Motorcycles Market
motomel M8