Argentine Motorcycles Market is collapsing hit by the economic and financial crisis and in the first half 2019 have lost 49% of volume, being the worst market globally. Honda has consolidated the leadership while Zanella dropped in third place, overtaken by Motomel. The italian Benelli is leader among the premium brands.
GDP continued to dive in Q1, on the back of another sharp contraction in domestic demand, only partially cushioned by a stronger external sector. Nevertheless, available indicators for Q2 point to a significant improvement: The pace of contraction eased markedly in April, thanks to surging agricultural and fishing production; and the trade surplus jumped in April-May. On the fiscal front, the government posted a primary surplus of 0.2% of GDP in January-May, which keeps it on track to meet goals outlined in the IMF deal. Meanwhile, on 5 July, the IMF concluded the fourth review of the Stand-by Agreement, which paves the way for the disbursement of additional USD 5.4 billion.
Argentina is seen remaining in recession in 2019, as elevated interest rates, stubbornly-high inflation and shrinking public investment hit domestic demand. However, surging agricultural production and a weaker peso will benefit external accounts, while budget restraint improves fiscal metrics. Political uncertainty ahead of October’s elections poses downside risks.
2019 Market Trend
Starting from the all time record sales hit at the end of the 2017, the Argentine motorcycles industry is deeping hit by the economic depression started during the 2018 and even strong. After the 2018 decline, mainly due to the Q4 huge fall, in the 2019 the market is one of the worse in the World losing near the half of the previous year volumes.
Indeed, according to data released by the Minister of Infrastructures and Transportation, the year started with first quarter sales at only 108.295 units, down 47.2%. In the second quarter the trend unchanged, with April sales at 29.712, down 52.9%, May with 26.791 units (-54.4%) and June with 21.417 units, down 45.4%, ending the first half 186.215, down 49.1%.
Best selling Brands
As far as regard the competitive landscape, after having conquered back the leadership in the last months of 2018, the Japanese Honda is now creating a huge gap over all the others competitors. In the first five months of 2019, Honda sold 41.161 units (-37.8%) substantially gaining in terms of market share.
In second place the local brand Motomel, which overtook Zanella by few units, selling 26.041 units (-48.0%) and 14.0% of market share.
In third place the local icon Zanella, which was leader for 8 consecutive years before to lose the head of the market last year. Actually the Argentine brand is really in difficulties ending the first four months of the year with only 23.423 sales (-65.5%), while one year ago sales were aligned with Honda.
In fourth place Corven Motors with 22.190 sales (-43.1%) followed by Gilera with 13.815 (-44.5%), Keller with 12.630 (-13.5%) and Yamaha with 10.797 (-69.7%).
The Argentinian motorcycles market is one of the most interesting in Latin America, with sales hitting the milestone of half million sales in a single year in the 2014 and then jumped near 0.7 million in the 2017, when the “new deal” in the economy introduced by the President Macri, a strong sustainer of the automotive industry, achieved its peak.
In the 2017 this market was the fastest growing in the World with sales accelerating 44% hitting the new all time record of 688.647 and ranking as World’s 11th market and third in Latin America behind Brazil and Mexico.
Unfortunately, starting from the Q2 2018, Argentina was back in the middle of a financial crisis and the economy entered in recession with currency depreciation, raising inflation and the introduction of austerity measures which have killed the consumer’s demand in the entire automotive sector.
The two-wheeler industry was hit severely and the market started a fast drop since mid of the year ending the 2018 with relatively low lost (-15.9%, only thanks to the positive first half score.
Indeed, according to data released by the Argentinian Minister of Transportation, the motorcycles and scooters sales in 2018 have been 578.749 (-15.9%) still at the second highest level ever for the market. However, the Q4 fall was heavy and the market fell down near 50% compared with the correspondent period in the previous year and the 2019 outlook is now almost negative with an expected fall between 20 and 25%.
In the 2018 Zanella has celebrated the 70 years from the foundation. Originally an assembly company for auto produced by Peugeot and Fiat, entered the motorcycles sector at the end of the ’50 of last century, affirming their products as leader in the domestic market and exporting in the entire South America. Zanella was market leader in Argentina between the 2010 and the 2017.