Brazil April. Two wheeler sales up 15%. Suzuki booms 166%

Brazilian Motorcycles Market

Brazilian Motorcycles Market was the fastest growing market in the 2018 among the Top 25 global markets and started the 2019 with a robust +15.6%, consolidating the leadership in Latin America and the 8th place in the global ranking. Under the Honda dominion, Suzuki booms 166% and Triumph kept growing.

 

Economic Environment

Brazil’s economy is expected to have disappointed again in the first quarter, after a feeble end to 2018. Economic activity, a GDP proxy, dropped in both January and February—raising the risk that GDP growth stumbled in Q1. Industrial output fell at the fastest pace in over two years, in part due to halts in iron ore production. More broadly, a less favorable external environment is also dampening activity and exports fell in Q1.

Growth is seen staying tepid this year, plagued by a challenging environment both at home and abroad. While improved sentiment and accommodative monetary policy should help fuel a modest acceleration, reform uncertainty and subdued external demand will limit the uptick.

 

Market Trend

The start of the 2019 was almost positive and the market is projected to easily outpace the 1 million units in the full year. So far, sales increased 13.5% in January, 27.6% in February and 7.2% in March with a first quarter figures at 270.898 units, up a robust 15.8%. 

The Q2 started with unchanged mood and April sales were reported at 90.267, up 14.9% with year to date figures at 360.908 (+15.5%) and a favorable outlook for the rest of the year, with full year sales projected up 11.3%.

Brazilian 2-wheeler market is the largest in Latin America and one of the Top 10 in the World. Hit by the economic crisis in the 2014, the market has felt down rapidly from the 1.59 million units achieved in the 2013 to a negative peak of 814.440 in the 2017.

During the 2018 finally the market had approached a positive pathway, fueled by growing internal demand. and according to data released by the Brazilian Minister of Transportation, in the full year 2018, total motorcycles, scooters and ATV sales have been 957.617, a robust 17.6% from the previous year, the best year on year score among the Top 25 markets in the World.

Brazil gained one place in the global ranking, outpacing Taiwan, were now stands for 8th, behind Thailand and Pakistan.

 

Best selling Brands

Since 40 years this market is literally dominated by the Japanese Honda which ended the 2018 with over 80% of market share, with 775.617 sales. Moto Honda da Amazonia Ltda. (HDA), started operation 43 years ago, on November 10, 1976, opening the local plant to produce the CG 125 model with an initial capacity of 2.200 units per year. Actually operates an annual production near 1 million units and has produced near 25 million units since the start.

In the first four months of the 2019 Honda sales outpaced the market with 297.249 sales and an impressive 82.4% of market share.

The second best brand was Yamaha selling “only” 46.952 units (+8.3%) ahead of Suzuki with 4.541 (sales (+165%) and followed by the best premium brand, BMW with 2.702 units (-3.3%).  

Triumph kept growing (+14.3%) while Harley Davidson has lost 3.6%, thanks to the outstanding April delivery, recovering almost all the Q1 lost.

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