Mexico Motorcycles Market is on fire. Following years on growth,The start of the new year was again positive although with a lower pace and in the first quarter 2025 sales have been 440.518 (+4.8%).
Economic Outlook
Mexican 2025 GDP growth forecast has been reduced from a range of 1.25%–1.75% to below 1% owing to headwinds from trade developments. The economy succumbed to the effects of restrictive monetary policy in the fourth quarter of 2024, contracting by 0.6% compared with the third quarter.
Core inflation forecast is little-changed as we await clarity around the potential for Mexico to impose tariffs on U.S. goods. No tariffs or modest tariff imposition would limit inflation, which would face downward pressure from slowing growth and rising unemployment.
Motorcycles Industry Trend and Perspectives
As far as the motorcycles industry, the long term positive pathway continues although clouds over the economic environment, mainly pushed up by increased competition, with several new manufacturers landed in the country in the most recent years, aiming to attack the Italika leadership (without success, so far).
Following a track of years and years of growth, 2024 was really astonishing for the market with sales up 10.3% at 1.9 million. Now this is the 6th market in the World and one of the fastest growing!
The start of the new year was again positive although with a lower pace and in the first quarter 2025 sales have been 440.518 (+4.8%).
The electric segment is growing (+13.6%) while it is still almost marginal.
Market Leaders and Performance
Looking at the competitive arena, the star is Italika and its 2025 performance is again very positive with sales up 2.1%
In second place the other local OEM, Vento (+5.0%) followed by Honda (+12.9%) and Bajaj Auto (-2.6%).
Several OEMs are reporting double-digit èerformances, like TVS Motor, CF Moto, Zontes, Triumph, QJ Motor and the arena is any day more crowded.
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.
