Motorcycle market set for strong growth in 2024
Motorcycles play an important role as a means of transport in Latin America. There are several factors contributing to their success in the market: the lower purchase and running costs compared to cars, the both navigating traffic jams in large cities and unpaved roads in rural areas with ease. And then there is the proliferation of delivery services, especially in urban centres. Through the increasing popularity of food delivery services such as Uber Eats and Didi Food, for instance, in Mexico out of every ten motorcycles sold, seven are bought by someone intending to take on work as a delivery driver.
- In the last ten years, the industry grew from 3.7 million sales in 2012 to 5.6 million sales in 2023.
- The Latin American motorcycle market is expected to reach USD 15.42 billion in 2024.
- The market is expected to grow by 5.61% annually – reaching a market volume of USD 20.26 billion by 2029.
- The share of electric motorcycles (around 3-4%) is increasing, partly due to subsidies.
Especially in smaller countries such as Guatemala and Ecuador, the market is experiencing significant growth. Due to the positive development of per capita income, the Guatemalan market has more than tripled between 2012 and 2023 – from 85,000 vehicles sold to 297,000, making it the fifth largest in Latin America today.
On-road motorcycles are the most sold
On-road motorbikes continue to have the lion’s share of the market in 2024, with an expected volume of EUR 10.19 billion. However, there are significant variations between countries. In Brazil, for instance, scooters exhibited a growth rate that was twice as high as that of the overall market (30.02%) during the first half of 2024. In Argentina, CUBs (Cheap Urban Bikes) with engines up to 150cc are the current market leaders. In Colombia, the third largest market in Latin America, business has shifted from the lifestyle sector to everyday mobility over the past decade, thanks to a broader product range. On-road motorcycles (+8.4%) and scooters (+6.7%) are used for commuting to work – or by delivery services.
Latin America is the world’s number one off-road motorcycle market
At 0.7 million vehicles sold in North and South America, these regions were the largest market for off-road motorbikes worldwide in 2023. As road infrastructure is not yet sufficiently developed in many areas, rural communities, especially in mountainous areas, opt for off-road motorcycles as their preferred mode of transportation. On top of that, the great variety of landscapes on the American double-continent also make motorcycles an attractive mode of travel for tourists. Trips traversing rainforests, deserts, and mountain passes, such as the route crossing all of Chile from the coast to the Andes, have become a popular tourist experience. Local brands with their established repair and service infrastructure are competing with international brands. And almost at the same speed, the market for fat tyres is growing along with that of off-road machines: It is estimated to be worth $2.32 billion (worldwide) in 2023 and is expected to grow by a further 10.82 percent by 2030.
Read the interview with Brita Matthiesen about adventure motorbike tours in South America.
Market led by Japanese manufacturers
Over 50% of the market is dominated by Japan’s two largest manufacturers, Honda and Yamaha, followed by Mexico’s Italika and India’s Bajaj Motorcycles. Two smaller Latin American manufacturers are AKT from Colombia and Motomel from Argentina. As in other countries, China is establishing itself in the electric sector of the market, starting with parts and isolated imports. Japanese companies are defending their lead in part with competitively priced offers, such as Honda in Brazil with the CG 160 and their underbone Biz line, which are their most popular models.
The Italika phenomenon—Mexican manufacturer revitalises markets
Established only in 2005, Mexican manufacturer Italika rapidly gained popularity in Central America, becoming the tenth largest supplier worldwide. In Mexico, the domestic manufacturer has a commanding lead of almost 70% of the market. And also in smaller countries such as Guatemala, Italika temporarily tipped top brands such as Honda off the first place. The capacity of Italika machines ranges from 110 to 300 cubic centimetres and the product portfolio ranges across all sectors: scooters, naked bikes, enduros, café racers, choppers, sports bikes, and touring enduros. The latest addition to the range is an electric motorcycle, a modified Super Soco TCmax from China, which is sold with the familiar Italika logo. All other models are produced at the company's factory in Toluca, near Mexico City.
