Ecuador Motorcycles Market rushed in the fourth quarter of the 2019 recovering after three negative quarters, ending the 2019 at the new all time record, the third in a row, with 174.895 sales, up 4.3%. The market leader is the Chinese Shineray with 16% of market share, followed by Suzuki and the local brand Daytona. Honda struggles in 11th place.
Ecuador economy seems to have regained some steam in the third quarter, following the weakest expansion in nearly three years in Q2. Economic activity picked up pace in Q3, likely underpinned by stronger oil production. That said, credit growth eased while consumer confidence weakened in Q3, suggesting that household spending faltered. In other news, on 17 November, Congress rejected the legislative package proposed by President Moreno, which included tax and Central Bank reforms, designed to narrow the budget deficit as part of a loan agreement with the IMF.
Growth is expected to rebound mildly next year as fixed investment recovers amid improved business sentiment; private consumption picks up slightly on the back of buoyant credit growth; and the fiscal position improves. However, political uncertainty ahead of the 2021 elections, and the risk of social unrest as the government attempts to cut its wage bill, pose key threats to the outlook.
Following the sharp fall reported in the period 2012-2016, when sales declined near the half from 100.277 in the 2012 to 52.750 in the 2016, the market is fast growing.
Indeed, according to the data released by the Ecuadorian Minister of Transportation, in only one year, the 2017, the market recovered all sales lost in the previous five, surging at 127.000; the boom continued in the 2018 when the market grew up 31%, one of the best performance worldwide.
In the first part of 2019 the economic crisis hit the demand and the market was losing. However, a fast growth in the last months allowed the full year to end at 174.895, up 4.3%, hitting the third all time record in a row and advancing in the 28th place in the Global ranking (not final).
Differently from any other market in Latin America, Ecuador motorcycles market is dominated by a Chinese brand and Honda ranks only in 11th place, probably the worst position in the World.
The leader is Shineray which confirmed the place in the 2019 with a record of 29.430 sales (+9.0%) equivalent at 16% of market share.
In second place with a wide gap from the top there is Suzuki with 14.835 sales (+4.9%) with 8.5% of market share and in third the local brand Daytona, a manufacturer offering a wide range of two-wheelers, with 13.646 units (+12.5%).
Aprilia was one of the fastest growing brand in the 2019, with sales up 175%.
Actually there are 112 brands active in the market.
Feria 2 Ruedas – Medellin 3-6th of May, 2020
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.