Mexico Motorcycles Market keeps booming. In 2021 sales have been 1.28 million (+18.3%), hitting the 8th all time record in a row and preliminary data for the 2022 start confirms a still strong speed in place. Italika dominates.
Motorcycles Market Trend 2021
The Mexican motorcycles market keeps to fly ahead.
The market has been one of the best worldwide in the last decade and the covid19 is just enhancing the demand for two wheelers, with sales boosted towards new records.
Mexico is among the World’s 15 largest economies and is the second largest economy in Latin America. The country is highly dependent on the commercial partnership with the United States, its largest trading partner and destination of nearly 80% of its exports.
The motorcycles industry is growing interrupted since years, driven by the rocketing growth of the domestic industry and by the market star, Italika.
In the last decade the market increased annual volume by around three time and in the 2021 outpaced Brazil becoming the largest in the entire Latin America.
In 2021 sales have been 1.28 million (+18.3%), hitting the 8th all time record in a row and preliminary data for the 2022 start confirms a still strong speed in place.
Wishing to summarize the reasons behind the two-wheeler market boom, they are mainly four:
- Demand for individual mobility
- High consumer spending due to low interest rate and high liquidity
- Demand for environmental respectful vehicles, as 2-wheeler are generally considered, and for electric scooters
- Strong growth for the market dominator, the domestic producers, Italika
Surprisingly, Italika signed a partnership agreement to distribute Hero Motor in Mexico. Hero is the third largest manufacturer in the World and sound risky to help one of the potentially strongest rival to start up operation in the country. The Hero landing, originally scheduled for early 2021, has been postponed for Hero production limits in India, due to constraints correlated with covid.
Mexican Market Heritage and Overview
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 development 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.
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.
The top not Mexican manufacturer is Honda, which produce vehicles in he Guadalajara plant, opened in 1985, with main production focused on GL150, CGL125, XR150L, DIO, CB190R models and with a 100.000/year capacity.
The last to have discovered the potential of this market have been the Indian manufacturers and with the landing of Hero, all the Fab4 Indian companies (Bajaj Auto, TVS Motor, Royal Enfield and Hero) will fight in the market.
Bajaj opened a 50.000/year units plant last year.
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.
As far as transition to electric vehicles, the country is still at ground zero. The CO2 emissions are at stage 4, since only the 2020 and electric market is near zero.