Latin America motorcycles market (16 countries) kept recovering in October with sales at 277.278 (+11.6%) further reducing the lost from the correspondent period last year. Year to date October sales were 2.18 million (-11.8%).
Please note data reported regards the motorcycles industry in large extended, including not only 2/3 wheelers as moped, scooter, motorcycles, but even other vehicles, like ATVs, usually included in this industry.
After logging its worst recession in recent history this year due to the Covid-19 blow, Latin America’s economy is poised to recover in 2021 as foreign demand and domestic activity revive. That said, significant risks lie ahead, most notably subdued household incomes, concerns over enormous fiscal gaps, uncertainty regarding the pandemic’s trajectory, and social upheaval.
Regional inflation climbed to a preliminary 6.2% in October (September: 5.9%), primarily driven by stronger price pressures in Brazil. Notably, in Colombia, inflation declined to its lowest in over 50 years amid weak consumer demand. After a noticeable drop this year due to output gaps and low oil prices, regional inflation is seen rising in 2021 in line with the economic recovery.
Motorcycles Industry Perimeter
As far as the Latin America two-wheeler market, we actually cover a wide range of 16 countries, Brazil, Bolivia, Argentina, Colombia, Peru, Guatemala, Paraguay, Ecuador, Costa Rica, Honduras, Nicaragua, Chile, Uruguay, El Salvador, Panama and Belize. So when reporting data on the region, we mean the total of these countries.
Said this, in all the Latam the motorcycles industry has a relevance both in terms of local production, when thousand people are employed in the industry, and market, as the two-wheelers still have a key rule as low-cost mobility device for millions people.
There are production plants in Brazil, Colombia, Argentina, Ecuador, Guatemala, Uruguay and Paraguay with over 250 manufacturers in competition.
The economic difficulties actually emerged in several countries are deeply hitting the motorcycles industry in the region.
The fact that top markets, like Brazil and Colombia are growing in double-digit, minimize the regional negative outlook. However, when reading data, country-by-country the fall is really impressive.
Following the already negative data reported in the 2019, with regional sales at 3.2 million, down 6.5%, the 2020 is widely negative. Sales in the first quarter were in line with the previous trend (-5.3%) while the covid 19 spread pushed sales down 55.1% in the second quarter, with the first half 2020 closed at 1 million units sold, down 28.7%.
A progressively recovery is in place since the Q3, when sales increased in double digit. In October sales have been 277.278 (+11.6%) further reducing the lost from the correspondent period last year. Year to date October sales were 2.18 million (-11.8%).
The model featured in this articles, the Honda CG 160 Fan 2020 is the best-selling model in the region.