Brazil June. Two wheeler sales boomed 41%. Suzuki is the fastest growing brand this year

Brazilian Motorcycles Market

Brazilian Motorcycles Market continue to fly in the 2019, following the 2018, when it was the fastest growing market within the World’s top 25 global. With the +41% scored in June, the industry kept growing in double-digit. Under the Honda dominion, Suzuki booms and Triumph kept growing.

 

Economic Environment

Brazil’s economy is struggling to gain momentum after GDP contracted for the first time since the 2015–2016 recession in Q1. Economic activity contracted again and retail sales dropped in April, while industrial production fell in May—suggesting broad-based weakness. Moreover, business sentiment waned throughout Q2, hitting a six-month low in June and erasing some earlier gains from initial post-election optimism, while exports stagnated due to subdued external demand.

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. Indeed, 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 mood unchanged in the Q2, with April sales reported at 90.267, up 14.9%, May at 95.695 (+8.8%) and June at 72.115 (+41.9%), ending the first half at 528.720 (+17.2%) and a favorable outlook for the rest of the year, with full year sales projected up 14%.

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 sixth months of the 2019 Honda sales outpaced the market with 434.356 sales (+17.3%) and an impressive 82.1% of market share.

The second best brand was Yamaha selling “only” 69.258 units (+9.3%) ahead of Suzuki with 5.635 sales (+96%) and followed by the best premium brand, BMW with 4.651 units (+23.7%).  

Triumph kept growing (+1.2%) while Harley Davidson has lost 0.8% an Ducati 22%.

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