Colombian Motorcycles Market is fast recovering after the double-digit lost reported last year and is projected to be back near the highest level ever. Sales in the first half 2021 have been 317.714, up 56.7% from the correspondent period in 2020 and 9.4% from 2019.
Motorcycles Market Trend 2021
Following the double-digit lost reported last year, the motorcycles market is projected to a rapid recovery in the 2021 and the first months data confirms this expectation.
In the first quarter sales at 161.997 were up 10.4% from the correspondent period last year and 9.3% from the Q1 2019.
In the second quarter the line was still hot and sales increased substantially, not only cover the shutdown 2020 period but over the pre-covid 2019 as well.
Sales in the first half 2021 have been 317.714, up 56.7% from the correspondent period in 2020 and 9.4% from 2019.
The market leader was again Yamaha with 64.577 sales (+55.1%) followed by Bajaj Auto with 50.071 sales (+8.5%) and Honda with 46.287 (+42.9%).
Outstanding performance for Victory (+213%), Starker (+381%) and TVS (+111%).
The big fact of the year is the difficulties reported by Bajaj, which has been market leader for over 10 years and now is falling down sharply. The reason behind this fall is the strategic changes applied by the Indian companies, which last year shifted the local partnership from Auteco (the largest distributors in the country, which could have done the mistake to become distributor of many brands) to UMA Group.
In addition, aiming to export in the region, Bajaj has just opened a plant in La Tebaida, Quindío. The new plant includes CKD operations for materials imported from the parent company. Operations start with motorcycle assembly lines with Pulsar, Dominar, Boxer, Platina, and Discover.
So we can expect a Bajaj recover in the next months.
In 2020 Bajaj Auto lost the crown after a decade on Top
In the pre-Covid19 era, the Colombian two-wheeler industry was really in a good shape and following the previous years growth have achieved the rule of second largest market in the continent, the first in the Spanish language area, becoming a relevant hub for the industry in the entire Latin America.
Unfortunately, the arrival of Covid19 have forced the government to shut down industrial and commercial activities during the entire year and the industry has reported in 2020 the first decline after three years of growth.
Although partially recovering during the second part of the year, annual sales have been 523.885, down 14.8%.
The ability to react was different, brand by brand. The key fact was the change in the leadership after over a decade, with Bajaj Auto slipped in second place.
Nearly 28 years later, Auteco receives for the first time completely knocked down (CKD) packages from Chakan plant of Bajaj and started to assembly in three lines models which become very popular in Colombia – Boxer, Pulsar and Platina – fueling the industry growth and rapidly becoming the first market outside India and the only one in the World where Bajaj is market leader.
Thanks to a price unrivalled price positioning, plus a deep network distribution and active marketing strategy, Auteco/Bajaj Auto created consolidated in the years a huge gap over all competitors. In the 2013, Bajaj Auto were over double than Yamaha, the second best seller.
However, the growth of Colombian market created high interest on several manufacturers and the competition become hard and hard, with Baja Auto losing market share any year.
In the 2020 the new market leader was Yamaha with 105.202 sales (-7.9%), ahead of Bajaj Auto with 101.800 (-28.2%) and Honda with 83.714 (-19.5%).
Colombian motorcycles industry heritage
In the last decade the Colombian motorcycle industry was completely transformed becoming not just a lifestyle sector, as in the past, but a key factor in the private mobility, thanks to the expansion of product offer, the fall of prices, the increased care for safety and the youngest generation love.
So today there is a wider range of consumers approaching the purchase of a motorcycle to transport themselves to the university, to their workplaces or working for the new fast developing category of delivery-men, people who use motorcycles to fast deliver everything, from food to goods.
Today in Colombia over 50% of vehicles park is on two-wheeler and in average there is a motorcycles each 5 people living in the country. These data allow to explain why motorcycles are actually an important tool for Colombians, for transportation, for lifestyle and for working as well.
To achieve these outstanding performance a brilliant job has been done by the government, which has progressively changed rules to guide the sector evolution, and by the manufacturers, which have made a tremendous effort to create local facilities and produce high quality-good priced vehicles and related products such as accessories, equipment and special clothing.
In Colombia there are six motorcycle manufacturers (the oldest is active since 1942) which operate assembling in partnership with top international firms, like Honda, Kawasaki, KTM, Kymco, Victory, Yamaha, Suzuki, Hero producing both for domestic market and export.
The market grew up consistently in the decade ended in 2014, when total sales hit the highest level 694.800 units.
The country has been chosen as production hub for the Latin America by several Asian manufacturers and is not a surprise to find as market leader the Indian Bajaj Auto.