Mexico 2023. Motorcycles Market Hits The 10th Record In A Row

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Mexico Motorcycles Market is still in fire. New 2-wheeler sales in 2023 have been 1.4 million (+0.2%) the 10th all-time record in a row. Italika consolidated the leadership.

Motorcycles Market Trend

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.

Mexico’s economy experienced 3.1% growth in 2023, driven largely by its industrial activities and the services sector, as reported by the National Institute of Statistics and Geography (INEGI). The performance is 0.8% below the 2022 but over the expectations, sustained b strong demand for consumers good and interest rate lower than in other Latam countries, thanks to an inflation rate under control.

In this positive economic environment, the motorcycles industry continued its run, posting a new growth, the 10th in a series. 

New 2-wheeler sales in 2023 have been 1.4 million (+0.2%) the 10th all-time record in a row.

The growth was driven by scooter segment (+19.4%) while the motorcycle segment declined (-8.2%).

The electric vehicles segment is still very small although reporting a +36.7%

Looking at the competitive arena, Italika was the solid leader, although sales declined marginally.

In second place the other local OEM, Vento (+0.6%) followed by Honda (+1.3%) and Bajaj Auto (+7.7%).

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.