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India’s Motorcycle Brands demand boosting in Latin America

Indian players have changed the market scenario in Guatemala (Central America) because of their aggressive pricing. Hero, TVS and Bajaj Auto which grew up very fast achieving the market leadership in 2020, overtaking Honda, are staying on the top in 2021 as well.

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By Sandeep Wasnik

In Latin America, the motorcycle market is the fastest-growing sector since over a decade. In the last 10 years, the motorcycle market grew up from 3.7 million (2012) to 5.2 million (2021) business. Today, the largest market is Mexico, which surpassed Brazil by +4.6% for the first time. Reasons behind the boom are demand for individual mobility, high consumer spending due to low-interest rate and high liquidity, demand for environmentally respectful vehicles, and at last as 2-wheeler is generally considered and for electric scooters.

Exports of motorcycles from India is also rising after the COVID pandemic, Info-graphics clearly shows that Motorcycle with reciprocating internal combustion piston engine of a cylinder capacity exceeding 50cc but not exceeding 250cc have more exports from India, than Motorcycle with reciprocating internal combustion piston engine of a cylinder capacity exceeding 250cc but not exceeding 500cc.

Brazil is recovering while is still 20% below the record hit over a decade ago, on the other side, Colombia is in 3rd position for motorcycle market hitting the new all-time record volume which increased by 41.5%, followed by Peru in fourth with +49.7%, Guatemala in fifth position with +8.9%, Ecuador is in sixth +11.8%, Honduras +24.6%, Dominican Republic +15.5% and Paraguay +133.60.

In Mexico, Italika is the market leader with over 70% of market share, followed by Honda, Vento and Carabela. Surprisingly, Italika signed a partnership agreement to distribute Hero Motor in Mexico. In 2019, Bajaj opened a 50.000/year units plant and contributed to support the market and rapidly expanding the presence. 

In Brazil, the registrations of 2-wheeler have been 1.267.649 (+6.2%), the best in years, but slowest increase in South American region, where demand for 2 and 3-wheeler is really jumping up. Indian motorcycle Royal Enfield made rank of seventh amongst the Brazilian motorcycle market and scored a strong +152.2% overtaking Triumph with +7.6% and SYM with +52.8%. 

In Argentina, due to the 2019-2020 deep financial and economic crisis, which hit the motorcycles market hard, pushing down the sales from 572,266 (2018) to 263,795 (2020), the industry is recovering and in 2021 reported a strong increase. The Indian Bajaj Auto holding the seventh ranking with increase in sale by 52.5%

The Colombian motorcycles market is the 4th largest in Latin America after Mexico, Brazil, and Argentina. Bajaj was the market leader for over 10 years and now is falling down sharply, the reason being the strategic changes, shifted local partnership from Auteco to UMA Group, where Auteco is the largest distributor in Colombia. Bajaj Auto opened a plant in La Tebaida, Quindío aiming to export in the region which includes CKD operations for materials imported from the parent company. Operations have started with motorcycle assembly lines with Pulsar, Dominar, Boxer, Platina, and Discover.

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In Guatemala Motorcycles Market, Bajaj Auto is the market leader ahead of Suzuki and Honda. Indian players have changed the market scenario in Guatemala because of their very aggressive pricing. Hero, TVS, and Bajaj Auto which grew up very fast achieving the market leadership in 2020, overtaking Honda, are staying on the top in 2021 as well.

About the author: The author is Director in Grupo 108 for Latin America Business Development; Grupo 108 is Business Promoters in Latin America.

Disclaimer: The views expressed are personal and do not reflect the official position or policy of the Financial Express Online. Reproducing this content without permission is prohibited.

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