Peru June. Bajaj lost the second place in a market declining 6.6%

Peruvian Motorcycles

Peruvian Motorcycles Market is moderately declining in the 2019 hit by the negative economic environment. In the first half, sales have been 144.598, down 6.6% from the correspondent period last year. Behind the leader, Honda, the local brand Wanxim (based on CKD models from China) took the second place overtaking the Indian Bajaj Auto.

Economic Environment

Growth sunk in the first quarter, constrained by cooling domestic demand and a weaker external sector, and available indicators point to only a modest uptick in the second quarter. While consumer spending continued to expand at a healthy clip in Q1, a sharp contraction in infrastructure spending weighed heavily on investment activity, and roadblocks at Las Bambas mine undermined export growth. Turning to Q2, the economy seems to have remained subdued. In April, credit growth eased—although it remained relatively robust—and in April-May business sentiment weakened, while tensions at Las Bambas continued well into May.

Growth will ease in 2019, as political uncertainty weighs on non-mining investment and infrastructure spending decelerates. That said, healthy credit growth and job creation should support household spending. Intensifying global trade tensions, a stronger-than-expected economic landing in China and political uncertainty represent the main downside risks to growth.


Market Trend

According to data released by the Minister of Transportation & Infrastructures, the Peruvian motorcycles industry in the 2019 is reflecting the not positive economic environment, losing terrain month after month.

Indeed, in the first quarter sales declined at 69.916 (-3.1%) before negative trend improved in the following month, ending the first half of the year with 144.598 sales (-6.6%).

The two-wheeler mix on total improved at 59% (up 1 point from full year 2018) compared to the tricycles (which are mainly used for commercial purposes).

This performance follows the positive end of the 2018, when the market was reported at 284.308 units, up 2.5%, with the third annual growth in a row, despite of the introduction, in May 2018, of the Impuesto Selectivo al Consumo (ISC) a new tax for all new vehicles sold for private use, with a 10% due for petrol vehicles and a 20% for diesel.

Actually the industry is concentrated in the Top 10 brands, despite there are over 200 brands selling motorcycles in the country.

Honda is on top with 25.950 sales year to date, down 21.2% and with 18.4% of market share. In second place Wanxim, a local brand based on CKD models imported from China, with 21.582 sales (-11.5%) having outpaced the Indian Bajaj Auto , actually third with 18.647 sales (-28.2%), the leadership in the trimotors segment.

In fourth place the Chinese Zongshen with 18.487 units (-0.5%) ahead of the local brand Ronco with 8.875 (+22.7%) and the Mexican Italika with 5.970 (-35.2%), struggling after years of success.

In the country near the half of two-wheeler sold are street motorbike in the range of 125-150 cc.


Peruvian motorcycles industry heritage

The motorcycles industry is a relevant sector within the Peruvian industrial production with a wide group of manufacturers active with local plant, arrived here from Japan, China, India. There is also a group of local manufacturers while all the top European brands plus Harley Davidson are represented by local distributors.

The market is one f the most relevant in South America with an annual volume stable above the 250k. This market ranks as the fifth largest in Latin America after Brazil, Mexico, Argentina and Colombia, while at Global level in the 2018 the market was 19th, just ahead of the largest European country, France.

The 2018 sales level was the highest in this decade.



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