Colombian Motorcycles industry in the 2019 is one of the fastest growing in the World and is projected at the best score out of the last five years. Indeed, sales in the first ten months of the year have been 505.000, up 11.4% with October at 52.169, +4.5%. Bajaj Auto is market leader ahead of the Honda and AKT while Starker and KTM are booming.
Colombian economic activity sustained a solid pace of expansion in the second quarter and seemingly picked up in the third quarter on solid domestic demand. Faster growth in consumer loans, coupled with a lower unemployment rate, boosted private consumption in Q2, with upbeat capital investment further supporting the overall expansion. Turning to the third quarter, domestic demand likely sustained a solid momentum at the outset, as signaled by increased retail sales and a jump in housing starts. In addition, industrial production rebounded solidly in July and the PMI remained in expansionary territory throughout the quarter.
Economic growth is projected to pick up this year on the back of robust domestic demand. In particular, investment activity is seen gathering pace amid increased outlays in infrastructure and oil-industry projects, while consumer spending is expected to remain strong. Uncertainty over the pace of fiscal reform and commodity price volatility are key risks to the outlook.
Colombian Motorcycles industry is one of the few positive in the 2019 (together with Brazil) while the most of regional market are experiencing a crisis, deep in several cases. Thanks to the current year gain and the simultaneous fall of the Argentine market, Colombia become the second largest motorcycles industry in South America. This year growth has been strong since the start, with first half sales at 291.422 units, up a robust 13.4%
In the second half the mood unchanged and the market kept growing, scoring a +9.8% in the Q3 and is projected to end the year at 590.000 units, the best score out of the last five years and the third best level ever.
Indeed, sales in the first ten months of the year have been 505.000, up 11.4% with October at 52.169, +4.5%.
The market leader year to date is again the Indian Bajaj Auto which have sold so far 116.403 units, up 4.9%, with 23.0% of market share. Bajaj also holds the best-selling model, with the Boxer 100 CT.
In second place there was the Japanese Yamaha with 92.621 sales (+11.0%) followed by the archrival Honda with 86.978 (+17.3%), AKT with 71.255 (+4..4%), Suzuki with 41.188 (+15.5%), Hero with 20.413 (+15.2%), the local brand Victory with 20.081 (+14.0%) and the Taiwanese Kymco with 19.637 (+9.6%).
Colombian motorcycles industry heritage
In the last decade the Colombian motorcycle industry was completely transformed becoming not just a lifestyle sector, as in the past, but a key factor in the private mobility, thanks to the expansion of product offer, the fall of prices, the increased care for safety and the youngest generation love.
So today there is a wider range of consumers approaching the purchase of a motorcycle to transport themselves to the university, to their workplaces or working for the new fast developing category of delivery-men, people who use motorcycles to fast deliver everything, from food to goods.
Today in Colombia over 50% of vehicles park is on two-wheeler and in average there is a motorcycles each 5 people living in the country. These data allow to explain why motorcycles are actually an important tool for Colombians, for transportation, for lifestyle and for working as well.
To achieve these outstanding performance a brilliant job has been done by the government, which has progressively changed rules to guide the sector evolution, and by the manufacturers, which have made a tremendous effort to create local facilities and produce high quality-good priced vehicles and related products such as accessories, equipment and special clothing.
In Colombia there are six motorcycle manufacturers (the oldest is active since 1942) which operate assembling in partnership with top international firms, like Honda, Kawasaki, KTM, Kymco, Victory, Yamaha, Suzuki, Hero producing both for domestic market and export.
The market grew up consistently in the decade ended in 2014, when total sales hit the highest level 694.800 units. However, since 2015 the industry entered in a negative mood losing near 200k in the following three-years ending the 2017 below the half million (with 496.696 units).
Finally, in the 2018 the trend changed and since the Q1 the demand sustained the market which closed the year at 543.265 units (+9.4%).
The country has been chosen as production hub for the Latin America by several Asian manufacturers and is not a surprise to find as market leader the Indian Bajaj Auto which sold 130.452 units in the 2018, up 1.6%, with 23.8% of market share.