Brazil August. Market keeps the speed in double-digit while Suzuki is the fastest growing brand

Brazilian Motorcycles Market

Brazilian Motorcycles Market continue to fly in the 2019, with August sales up in double-digit again and the entire year projected at 1.1 million units. Despite the already huge market share, Honda keeps gaining terrain over all competitors, while Suzuki is fast growing and Ducati is finally positive.

 

Economic Environment

Brazil’s economy rebounded solidly in the second quarter, with growth exceeding expectations. The upturn was spearheaded by a pick-up in investment amid loose monetary policy and improved industrial activity. In addition, exports improved although still remained weak overall due to evaporated demand from Argentina and a subdued external backdrop. Incoming data for the third quarter has been mixed so far, suggesting that the acceleration may have been short-lived: While consumer and business sentiment rose in August, industrial production contracted again in July and the current account recorded the largest deficit since 2015 in the same month.

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%).

The third quarter growth appear solid after July lost 1.8% while August grew up 10%. At the end of August, year to date sales have been 720.502 (+13.5%)  and the outlook for the rest of the year remain positive , with full year sales projected at 1.1 million units.

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.

 

United States Motorcycles Market

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.

Year to date August 2019 Honda sales outpaced the market with 590.557 units (+13.6%) and an impressive 82% of market share.

The second best brand was Yamaha selling “only” 96.729 units (+8.8%) ahead of Suzuki with 7.277 sales (+41%) and followed by the best premium brand, BMW with 6.380 units (+33.4%).  

Triumph kept growing (+12%) while Harley Davidson has lost 0.1% and Ducati is finally in recovery, with sales up 11%.

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