Ecuador Motorcycles Market in deep fall during the first quarter 2019, following the outstanding performance scored in recent years. Hit by a deceleration in the domestic demand and cloudy economy, the market ended the quarter with 28.980 sales, down 30.9%. The market leader is the Chinese Shineray with 17.4% of market share, followed by Suzuki.
Ecuador economy rounded off 2018 with the weakest performance in two years in Q4. A continued deceleration in domestic demand, led by a dive in fixed investment growth amid tighter credit availability and lower business sentiment, led the slowdown. Turning to 2019, economic activity picked up slightly in January as oil production climbed. A continued moderation in private sector credit growth, however, likely constrained household spending and investment. Meanwhile, the IMF released details on the USD 4.2 billion extended fund facility, which will aim to improve the economy’s fiscal position by cutting public sector spending and raising revenue via a tax reform.
Growth is set to weaken this year, as austerity measures and tighter credit conditions weigh on domestic demand, underpinned by a plunge in government spending and a fall in private consumption growth weighed on by reduced household incomes.
2019 Market Trend
Following the fast development reported in the most recent years, the start of 2019 was really cold for the Ecuadorian two-wheeler market. Indeed, according to the data released by the Ecuadorian Minister of Transportation, sales were very slow in January with only 5.535 sales, down a huge 60%, followed by February with 12.262 sales (-12.2%) and March with 11.183 (-20.0%). The first quarter ended with an unexpected 30.9% fall at 28.980 units.
As far as best-selling brands ranking, in the first quarter of 2019 the leader unchanged and, despite losing 36% of sales the Chinese Shineray was still on top of the list with 4.317 sales (-36.0%) with a robust 17.4% of market share.
In second place and with a wide gap from the top there is Suzuki with 2.466 sales (-30.3%) with 9.9% of market share. In third place Daytona, a local brand offering a wide range of two-wheelers, with 2.174 units (-28.3%).
Actually there are 112 brands active in the market.
In recent years the market grew up growing fast, following a period of consolidation, when during the 2012-2016, sales declined from 100.277 units to near the half, at 52.750. The recovery of domestic economy, always very correlated with the copper price in the international market, boosted the internal demand and the motorcycles industry, a primary sector for the individual mobility in the country, took off recovering in a single year all the previous three years lost, ending the 2015 at the new record of 127.980 units.
Indeed, according to the data released by the Ecuadorian Minister of Transportation, the demand continued to be strong in the 2018 and the second all time record in a string was hit with sales jumping up a further 31.1%, one of the best performance in the World, with sales at 167.734.
With the +31% increase, Ecuador in the 2018 was the World fastest growing market (within the top 50 countries) and advanced in the global ranking keeping the 26th place, up 3 spots from the previous year.
The country has been chosen as production hub for the Latin America by several manufacturers and local production is near the half of the total sales.
Feria 2 Ruedas – Medellin 2-5th May
The Ecuadorian economy and industrial activity is very correlated and related with the near Colombia. This even more in the two-wheeler industry as both the country represent the first destination of export for motorcycles. It is natural, wishing to know more about Ecuadorian industry meeting key producers and players, to visit the most important trade show in the South American Spanish countries, scheduled in Medellin, Colombia, in early May.