Mexico Motorcycles Market is the 8th largest worldwide. In 2022 the industry hit the 9th All-Time record in a string with 1.3 million sales (+5.3%), driven up by the local leader Italika and by the huge field of competitors recently landed in the country.
Motorcycles Market Trend 2022
Although rising economic difficulties, high inflation, increasing interest rates, components shortage and negative economic expectations, the Mexican motorcycles market keeps to fly ahead and is projected to hit a new record this year, the ninth in a string.
Mexican Motorcycles market has been one of the fastest growing worldwide in the last decade and the covid19 has further enhanced the demand for two wheelers sustaining new record sales.
Actually, Mexico is among the World’s 15 largest economies and is the second largest economy in Latin America, while keeping the year after year growth, the motorcycles industry is now surged in eight place globally, and is the largest in Latin America, ahead of Brazil.
In 2022 the industry hit the 9th All-Time record in a string with 1.3 million sales (+5.3%), driven up by the local leader Italika and by the huge field of competitors recently landed in the country.
Indeed, two factors are pushing up the industry. The first and original is the astonishing growth of the Mexican manufacturer Italika, which hold over 70% of market share, keeping growing production, network, model line up and sales.
The second factor was generated by Italika success and consist on booming competition, with Japanese and Chinese manufacturers now attacked by Indians, which started producing locally.
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 (in partnership with Italika), 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 in 2020. 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.