Italika dominates the fast growing domestic Mexican market and is the best selling brands in the North American region, selling more than the double of the second player, Honda. However in the 2020 sales are projected to fall down by over 100.000 units, due to Covid19 effects on Latin America economy.
Italika global sales and outlook in 2020
No one can escape from the current crisis and even a manufacturer always a winner since his foundation in 2005, must accept to break the growth and maintain the positions in this environment.
Italika, which last year sold over 740.000 units becoming one of the top 15 motorcycles manufacturer in the World, has been reported with a 22% decline in the first sixth months of the year, due to deep sales lost started in March.
The full year will be negative as well with sales projected at 650.000 units and even the 2021 will be harsh due to the deep crisis in the entire Latin America.
However, the manufacturer keeps investing into the futuro, announcing opening of new dealerships each month in Mexico and scouting fro new distributors in the not yet covered countries in Latam region.
In 2019 Italika scored the sixth record in a row in 2019 outpacing 0.7 million sales
While just few people in the industry know this brand, the pure Mexican Italika is one of the largest company worldwide and leader in the Central America, dominating the domestic market.
Founded only 15 years ago, Italika already produced and sold over 4 million two-wheeler (and some ATVs) thanks to high technology, low cost of labor, a huge line up covering all segments and a unique selling proposition based on the company owners characteristic. In fact, Italika is part of Elektra financial group, a huge conglomerate operating both in the large consumer goods distribution and financial activity correlated.
Since the start, Italika was distributed by a huge network of point of sales (actually over 2.500) not specialized in the two-wheeler sales. Over 95% of Italika sales are financed, almost 100% through the Elektra financial companies.
The Italika growth in this first 15 years of live had been exponential representing a uniqueness in the World, excluding companies in India and in China. Only in one out of the last 15 years the growth was broken – the 2013 – and in the last 6 years a record followed a record, with the 2019 marking a memorable milestone, first time over the 700.000 units, despite the weakness of the export markets. Mexican market keep growing, fueled by the outstanding Italika growth and is already over the 1 million units and within the top largest markets in the World.
Looking at North American region, Italika is the best seller with sales over doubling the global leader, Honda!
In the World, Italika ranks as 15th largest company, despite selling just in one continent. Amazing!
However, the talented people leading Italika are not yet looking in the North, despite Elektra is well operating in several North American States. Italika strategy is focused south and is expanding the activity in the countries in Central America, where is already strong in Guatemala and Honduras, and in South America, with a top presence in Peru.
The Brand Heritage
Italika is a new emerging motorcycles manufacturer headquartered in Toluca, Mexico. Despite this brand is not much known in the rest of the World, in Central America it represents a phenomenal success with an unrivalled performance since the foundation.
The company is born in the 2005 under the umbrella of a large Mexican conglomerate, the Salinas Group, with the idea to local assembly low-cost two-wheels based on Asian technology, design, components and parts.
Indeed the start-up was focused on creating a domestic network to distribute models assembled in the local plant, but designed by the a Korean firm which was producing motorcycles and scooters for the brand Hyosung.
However, already after few years, Italika ambitions grew up and in short-term they have moved inside all the process and the current models line-up has been designed in Mexico and locally produced, in the Toluca factory, which capacity has been expanded at 750.000 units per year.
In the first 15 years of activity, Italika has produced over 4 million motorcycles!
The new plant in Lerma inaugurated in 2019
The new complex, based near the city of Lerma, has 53,000 square meters, of which the production areas covers 10,000 square meters. It has storage for 16,000 motorcycles, distributed in 6 levels. It has 14 ramps to ship a total of 48 units daily, to support this production, the ship is worked for 2 shifts, with 98 people each. This is the sixth production plant opened by the company across the country and when this plant will be fully operative Italika total annual capacity will be closer at the 750.000 units target.