Peru 2023. Motorcycles Market Hits Second Best Results Ever

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Peruvian Motorcycles

Peruvian Motorcycles Market is struggling again. Following the previous year decline, in 2023 the industry experienced a new decline, with sales at 324.664 (-8.9%).

 

Peru Motorcycles Market in 2023

During the first six months of 2023, increased exports from Quellaveco, which accounts for more than 10 percent of domestic copper production, drove growth. Likewise, the labor market showed signs of recovery; employment in companies with more than 50 workers increased 4 percent and there was also a slight increase in average real wages.

In the same period (January – June 2023), GDP contracted by 0.5 percent due to political uncertainty, social unrest and the occurrence of disasters. Tighter financial conditions also contributed to depressed private spending and the country showed a slower than expected recovery. Weather events and conflict in the country impeded the execution of public investment, and key sectors such as agriculture, fisheries and tourism showed a lagged recovery.

The economy should report a GDP down 0,4% in 2023, negatively affected by successive shocks. The impact of most of these shocks (except for El Niño) will vanish in 2024 and economic activity will grow again (2,0%)

The motorcycle industry is very important in the country but in the last two years have been hit by adverse economic environment, after having achieved the best result ever in 2021, over 0.4 million units.

Following the previous year decline, in 2023 the industry experienced a new decline, with sales at 324.664 (-8.9%).

Looking at the competitive arena, in 2023 Honda consolidated although losing 9.7%.

The first challenger is the local manufacturer Wanxin which lost 5.4%, as the third, the Indian Bajaj Auto (-5.0%).

Behind, Ronco was the only positive (+3.0%) ahead of Zongshen (-31.3%), Yamaha (-7.3%), Ssenda (-3.4%) and Nexus (-18.7%). 

Most of Chinese manufacturer’s difficulties are due to the short supply.

 

Motorcycles Industry Heritage and Trend

Peru has made remarkable progress in economic growth and poverty reduction in the two decades prior to the COVID-19 pandemic.

Macroeconomic stability, trade openness, and a favorable international environment allowed the country to become an upper middle-income economy, with per capita income rising from US$ 2040 in 2002 to US$ 7126 in 2022.

Its strong record of prudent macroeconomic policies and current macroeconomic indicators reflect low public debt, ample international reserves, and a credible central bank. Its financial system is well-capitalized and well positioned to withstand liquidity crises.

Peru’s 2-wheeler market performance remained stable during 2012-2019 in the range of 160K-170K.

In 2020 due to the covid19 virus there was a boom in the demand for private vehicles ensuring safety individual mobility and motorcycles sales skyrockets +43% compared to 2019, with 237.770 sales, before to jump again in 2021 to the astonishing level of 362.393 sales (+52% compared to 2020 and over double than in pre-covid 2019).

The growth was too fast is such a short period and in 2022 sales fell back at 312.713 (-13.7%). 

Peruvian Motorcycles
Italika SPTFIRE 2020