Guatemala Motorcycles Market continues to grow up in the 2020 although the negative economic effects on the economy generated by covid19 spread. The market hit the new all time record – the sixth in a row – increasing over 20% over the previous year.
Guatemalan motorcycles industry is one of the largest in the Latin America and is rolling and outstanding track since a decade and even the economic crisis arrived in the 2020 with covid 19 has not stopped the growth.
According to data released by the Minister of Transportation & Infrastructures, the domestic sales more than tripled in recent years, starting from near 70.000 units sold in the 2012 to an all time record, the sixth in a row, hit in the 2020 with 246.696 sales.
Several are the reasons behind the continue expansion of this market. Probably the most relevant is the increase of pro capita income, grew up US$ 4.460 in the 2019 (from US 3.463 in the 2013) fueling demand for individual mobility, easily satisfied by the two-wheeler industry.
Others factors are a favorable fiscal policy and the still low development of road infrastructures.
In addition, in recent years the number of motorcycles offered in the market grew up considerably. Until 5-6 years ago the offer was predominantly split between Japanese brands (Honda, Suzuki, Yamaha, Kawasaki) and some local manufacturers, frequently utilizing Chinese technology to produce CKD models.
A first “revolution” as represented by the arrival of the Mexican Italika, which was offering a wide range of motorcycles, reliable, sustained by a solid image and offered with a price competitive towards Japanese models. Italika boomed in the market achieving the first place in few years.
However, the arrival on Indian players changed again the competitive landscape. Hero, TVS and – overall – Bajaj Auto, very aggressive in pricing, which grew up very fast achieving the market leadership in 2020, overtaking Honda.
Japanese manufacturers are still strong, with Suzuki in second place, Honda in third and Yamaha in sixth, while Italika ranks in fourth and the best local manufacturer, Freedom ranks fifth.
In the Global scenario, Guatemala is within the Top 25 markets ending the 2020 in 21st place.