Colombia. 2019 Motorcycles sales up 6% gaining the 13th place in the World

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Colombian Motorcycles industry in the 2019 was one of the few positive within the Latin America region, gaining 6.4% with 584.335. Colombia become the second largest motorcycles industry in South America and the 13th in the World, despite sales are not at the best level, achieved in the 2014. Bajaj Auto is market leader while the other Indian manufacturers Hero and TVS are fast growing.

 

Economic Environment

Colombian economy sustained a solid pace of expansion in the final quarter of 2019, after growing at the fastest pace in four years in the third quarter. The manufacturing PMI improved in the fourth quarter amid upbeat business sentiment, while retail sales growth maintained a healthy pace in October–November against the backdrop of falling unemployment, suggesting stronger household consumption.

Meanwhile, on 20 December, Congress approved a revised version of the December 2018 tax reform, which had been declared unconstitutional by the Supreme Court in October and thus forced the government to resubmit the proposal. Provisions in the newly passed law included gradually cutting the corporate tax rate from 33% to 30% by 2022, which ought to stimulate investment. It also included a VAT rebate for the poorest 20% of the population–likely in response to large street protests that took place in December–, which could boost household consumption going forward.

 

Market Trend

Colombian Motorcycles industry in 2019 has been one of the few positive in the region (together with Brazil), while the most of the Latam markets have experiencing a crisis, deep in several cases.

Thanks to the current year gain and the simultaneous fall of the Argentine market, in the 2019 Colombia become the second largest motorcycles industry in South America and the 13th in the World, despite sales are not at the best level, achieved in the 2014.

Annual sales have been 584.335, up 6.2%, performing the second consecutive growing year.

The market leader was again the Indian Bajaj Auto which have sold 141.740 units, up 8.0%, with 23.2% of market share. Bajaj also holds the best-selling model, with the Boxer 100 CT.

In second place there was the Japanese Yamaha with 113.780 sales (+12.9%) followed by the archrival Honda with 104.011 (+15.6%) and AKT with 84.743 (+0.2%) at the new record level.

Behind, Suzuki with 50.917 (+18.1%), Hero with 24.697 (+15.8%), the other Indian TVS with the new record sale at 24.550 (+24.8%), the local brand Victory with 23.664 (+12.0%) and the Taiwanese Kymco with 22.959 (+5.2%).

 

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 Colombian motorcycles market is the fourth largest in Latin America after Brazil, Mexico and Argentina.

The market grew up consistently in the decade ended in 2014, when total sales hit the highest level 694.800 units.

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.

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