Colombia 2021. Benelli & Husqvarna Shine (+750%) in a Record Motorcycles Market(+45.3%)

Colombian Motorcycles

Colombian Motorcycles Market is running to hit the All Time record. The industry is sustained by the strong economy rebound and by the demand for individual mobility, while electrification is still very low. Year to Date October figures were 597.753, up 45.3% vs the 2020 and 31.3% vs the 2019.

Motorcycles Market Trend 2021

Following the double-digit lost reported last year, the motorcycles is rapidly recovering in the 2021.

The industry is sustained by the strong economy rebound and by the demand for individual mobility, while electrification is still very low.

As far as the economy, dynamics seemingly improved further in Q3, with economic activity continuing to expand at a double-digit pace in annual terms in July–August, although the growth rate eased on average from Q2 amid a fading base effect. Moreover, a declining unemployment rate in Q3—September’s reading marked a 21-month low—and improving consumer sentiment will have supported household spending in the quarter, as suggested by healthy retail sales growth in the first two months of the period.

And the 2 and 3 Wheeler sector is taking all the benefit. After ending the first half with sales up a robust 56.7%, in the third quarter registrations improved a further 40.7%, one of the best y-o-y score in the World.

In October sales improved again, while a with a lower pace (due to the strong data in the previous year) of 9.6%. 

Year to Date October figures were 597.753, up 45.3% vs the 2020 and 31.3% vs the 2019 projecting the full year at the new all time record, first time above the 700.000 sales.

The market leader was again Yamaha with 106.287 sales (+45.3%) followed by Bajaj Auto with 92.690 sales (+9.6%), AKT with 81.372 (+58.2%) and Honda with 76.690 (+18.2%).

This year the market is shocked by the landing of Benelli. Starting local operation in the 2020, the Italian/Chinese manufacturer jumped at 7.538 sales in the first ten months already acquiring over 10% market share.

Outstanding performance for Husqvarna (+752%), Victory (+121%) and Piaggio (+153%).

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 next year.

Colombian Motorcycles

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 Colombian motorcycles market is the fourth largest in Latin America after Brazil, Mexico and Argentina.

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.

Colombian Motorcycles