Paraguay Motorcycles Market is the 29th largest in the World, despite in the 2018 was far from the over 200k record reported in the 2011. Last year sales felt 7% due to the not favorable economic environment. Over 95% of models sold are locally produced and the market is concentrated in local brands hands.
Paraguay economy seemed to lose further momentum in the first quarter, in line with the trend seen during the second half of last year. In February, economic activity contracted for the third consecutive month and at the sharpest pace in over six years, in large part due to a severe drought which affected soy production. This in turn hit the external sector hard as merchandise exports fell in the first quarter, chiefly due to lower shipments of soy products.
Despite its likely weak showing at the start of the year, the economy should maintain a robust pace of expansion for the year overall on the back of strong consumer spending and solid investment activity. Weaker-than-projected growth in Argentina or Brazil, lower commodity prices and adverse weather conditions are the main downside risks to the outlook.
In the 2018 the Paraguayan motorcycles industry ranked as the 29th in the World, ahead of the United Kingdom and South Korea and behind Turkey.
In the Latin America motorcycles scenario, Paraguay is the 8th market, below Guatemala and ahead of Costa Rica, counting 3.2% of total regional sales.
Indeed the industry is far from the top volumes, hit in the 2011, when, at the end of a long run, the industry outpaced the 200.000 units recording 203.009 sales, so far the unbeatable record. In the following years the market declined progressively following below the 100.000 units in the 2016.
According to data released by the Minister of Infrastructures and Transportation, the prompt recovery shown in the 2017 was partially lost last year, with sales at 124.908 units (-7.0%).
Over 95% of vehicles sold are locally produced.
Best selling Brands
As far as regard the competitive landscape, 83.5% of 2018 sales were concentrated in the hands of four local brands, Kenton, Star, Taiga and Leopard.
The market leader, Kenton, sold 42.186 units holding the best-selling model, with the street motorcycle Kenton 150. In second place the Star, with 24.1% of market share and best-selling scooter in the market, the Star SK 125.
In third place Taiga and in fourth Leopard.
The premium segment is still small, with not all brands represented in the market, and BMW as leader, ahead of KTM.