Guatemala Motorcycles Market continue to grow year after year and is the second largest in Central America after Mexico. The positive economic environment and the arrival of several new players have boosted the market in recent years up the 2018 24th position at global level.
Thanks to prudent macroeconomic management, Guatemala has been one of the strongest economic performers in Latin America in recent years, with a GDP growth rate of 3.0 percent since 2012 and 4.1 percent in 2015. The country’s economy grew by 2.8 percent in 2017 and 3.0 percent in 2018, according to the latest estimates, and is expected to grow by 3.3 percent in 2019.
Nevertheless, Guatemala, the biggest economy in Central America, has one of the highest inequality rates in Latin America, with some of the worst poverty, malnutrition and maternal-child mortality rates in the region, especially in rural and indigenous areas.
Given Guatemala’s capacity for macroeconomic recovery, the next few years represent an opportunity to reduce poverty through more rapid economic growth. While pro-poor policy reforms could yield marginal improvements, accelerating growth will be crucial to achieving the country’s medium- and long-term social objectives.
Boosting growth will depend upon continued reforms to mobilize increased private investment and revenue to fund important pro-growth investments in infrastructure and human capital.
An increasingly important challenge for Guatemala is improving the levels of citizen security. High levels of crime and violence represent staggering economic costs for the country.
Guatemalan motorcycles industry is one of the largest in the Latin America and is in a positive track since years. According to data released by the Minister of Transportation & Infrastructures, the domestic sales doubled in recent years from near 70.000 units sold in the 2012 to an all time record, the fourth in a row, hit in the 2018 with 183.600 sales.
Several are the reasons behind the continue expansion of this market. Probably the most relevant is the increase of pro capita income, grew up US$ 4.460 in the 2018 (from 3.463 in the 2013) fueling demand for individual mobility, easily satisfied by the two-wheeler industry. Others factors are a favorable fiscal policy and the still low development of road infrastructures.
In addition, in recent years the number of motorcycles offered in the market grew up considerably. Until 5-6 years ago the offer was predominantly split between Japanese brands (Honda, Suzuki, Yamaha, Kawasaki) and some local makers, frequently utilizing Chinese technology to produce CKD models. A first “revolution” as represented by the arrival of the Mexican Italika, which was offering a wide range of motorcycles, reliable, sustained by a solid image and offered with a price competitive towards Japanese models. Italika boomed in the market achieving the first place in few years.
However, the arrival on Indian players changed again the competitive landscape. Hero, TVS and – overall – Bajaj Auto, the last to land in Guatemala but the most aggressive, introduced new models very competitive in terms of price, taking in short term a great share among entry models, conquering sales to local makers and to Italika, while Japanese were moderately hit, with Honda able to be back on the throne as the best seller brand.
In the Global scenario, Guatemala is within the Top 25 markets ending the 2018 in 24th place.