Ecuador Motorcycles Market in the 2019 has been hit by the economic crisis and is sharply declining. Indeed, in the first nine months of the year sales have been 89.733, down an heavy 28.7% and the perspectives for the remaining part of the year are not encouraging. The market leader is the Chinese Shineray with 17.4% of market share, followed by Suzuki.
Ecuador economic overall picture remains challenging. Activity rebounded in August following four consecutive months of contraction as petroleum production was ramped up to cash in on higher oil prices. Moreover, bank lending to the private sector bounced back in August after slipping to a 30-month low in July, thus easing constraints on household spending. The government is struggling to deliver on its IMF-mandated fiscal consolidation goals, however, and is unlikely to meet this year’s target.
The economy is seen returning to growth next year as the government will ease up on its belt-tightening. Moreover, improved business sentiment should help fixed investment begin to recover, while a pick-up in credit growth should buttress private consumption. The reforms should help deliver a fiscal surplus next year, while gradually restoring foreign reserves amid lower borrowing costs.
2019 Market Trend
Following the fast development reported in the most recent years, the challenging economic environment have hit the industry in the 2019 and the market is declining.
Indeed, according to the data released by the Ecuadorian Minister of Transportation in the first nine months of the year sales have been 89.733, down an heavy 28.7% and the perspectives for the remaining part of the year are not encouraging.
As far as best-selling brands ranking, year to date September the leader unchanged and, despite losing 36% of sales the Chinese Shineray was still on top of the list with 13.896 sales (-28.2%) with a robust 17.4% of market share.
In second place and with a wide gap from the top there is Suzuki with 7.968 sales (-22.4%) with 9.9% of market share. In third place Daytona, a local brand offering a wide range of two-wheelers, with 7.063 units (-20.1%).
Actually there are 112 brands active in the market.
In recent years the market grew up growing fast, following a period of consolidation, when during the 2012-2016, sales declined from 100.277 units to near the half, at 52.750. The recovery of domestic economy, always very correlated with the copper price in the international market, boosted the internal demand and the motorcycles industry, a primary sector for the individual mobility in the country, took off recovering in a single year all the previous three years lost, ending the 2015 at the new record of 127.980 units.
Indeed, according to the data released by the Ecuadorian Minister of Transportation, the demand continued to be strong in the 2018 and the second all time record in a string was hit with sales jumping up a further 31.1%, one of the best performance in the World, with sales at 167.734.
With the +31% increase, Ecuador in the 2018 was the World fastest growing market (within the top 50 countries) and advanced in the global ranking keeping the 26th place, up 3 spots from the previous year.
The country has been chosen as production hub for the Latin America by several manufacturers and local production is near the half of the total sales.
Feria 2 Ruedas – Medellin 2-5th May
The Ecuadorian economy and industrial activity is very correlated and related with the near Colombia. This even more in the two-wheeler industry as both the country represent the first destination of export for motorcycles. It is natural, wishing to know more about Ecuadorian industry meeting key producers and players, to visit the most important trade show in the South American Spanish countries, scheduled in Medellin, Colombia, in early May.