Mexico Motorcycles Market fast recovered in the second half 2020 following the difficulties found in the first part of the year, due to new emission standard introduction, short supply from China and covid19. However, the year ended for the third consecutive time above the 1 million units.
In the last decade, the motorcycles industry pumped up in Mexico from very low level to become one of the largest in the World and one of the few over 1 million annual sales.
The market growth was correlated with the outstanding growth of the local manufacturers, led by Italika, a giant with over three quarter of million annual production, which dominate the market with over 70% market share.
The uniqueness of this market is represented by the current sales mix, in which the local brand represent over 85% of sales, with Japanese brands not dominating as in the rest of the World and with premium brands marginal with less than 2% of market share.
The 2020 was hard here as in almost all the Latin America, but after difficulties found in the second quarter, the sales recovered in the second half, with double-digit scores in the last months.
At the end the year was again positive with the third consecutive score above the 1 million, at 1.080.000 (+3%), mainly thanks to the great Italika performance.
However, Italika is not the only local producer, as other brands on top of the local competition are made in Mexico, like Caravela and the second best seller, Vento, which is a company based in US, but selling in Latin America.
Together with the market leader, even the Indian Bajaj Auto contributed to support the market, rapidly expanding the presence in the market, thanks to the new local plant.
The new factory in Lerma, State of Mexico have a capacity of 50,000 units a year which can be doubled in five years to supply Mexican and other Central American markets.
Bajaj will not be the first foreign manufacturer to produce in Mexico. Honda motor has a capacity of 100.000 units in the Guadalajara plant, opened in 1985, with main production focused on GL150, CGL125, XR150L, DIO, CB190R models.
Main 2020 fact was the introduction of Euro 4 emission level standard, which is reducing the technologic gap over the most advance countries (Europe is at euro 5 stage) creating opportunities for local manufacturers to improve their technology and export in the surrounding countries.