Mongolia Motorcycles Market hits new record sales in 2024. The market keeps growing very fast and the first nine month sales have been 29.415 (+65.8%), one of the best performance worldwide. Shineray is market leader and the XF150 is the best selling model.
Mongolia’s economy will remain robust in 2024-25, as a government-led expansion of transport infrastructure boosts mining exports. Soaring export receipts will also maintain a sound balance-of-payment position and access to international capital markets. Mongolia is positioning itself as an emerging provider of critical minerals in an attempt to court investments from Western countries, although this will not meaningfully reduce its dependence on coal exports to China in the near term.
ADB forecasts Mongolia’s economic growth at 5.5% for 2024, up from the 4.1% projected in April. Growth is expected to accelerate to 6.0% in 2025, in line with earlier projections. Continued growth is expected to be driven by expansions in the services and industry sectors, including mining. A recovery in agriculture from the sharp decline experienced in the first quarter of 2024, combined with increased government spending, should also boost economic activity next year.
In such positive environment, the motorcycles industry is fast growing and our forecast for the next decade is very interesting with a market projected to increase over 5 time from the 2023 level.
In 2023 the market hit the record with 21.494 sales (+8.5%) driven by imported vehicles from China.
As expected, in 2024 the market keeps growing very fast and the first nine months sales have been 29.413 (65.8%), one of the best performance worldwide.
Most of sales are concentrated within the motorcycle segment, which is growing 61.8% this year. However, scooter segment is fast growing (+94.6%) due to the rapid urbanization in place.
All top manufacturers are Chinese, with Shineray market leader and growing 115.5%.
In second place there is Dayun (+64.3%) followed by Haojue (-1.1%) and Zhujiang (+35.3%).
The top Japanese manufacturer is Yamaha (+4250%), while the best European is GasGas.
Mongolia Overview
The large central Asian nation of Mongolia is rapidly developing its economy with a to grow from 5.8 percent in 2023 to 6.2 percent in 2024 as the mining sector expands, private consumption recovers, and fiscal expansion stays strong, according to the World Bank.
In the medium term, economic growth is expected to accelerate, averaging above 6 percent in 2025-2026, driven by a substantial increase in mineral production as Oyu Tolgoi’s 2023 mining production is anticipated to more than double by 2025.
Yet, significant downside risks persist. These risks encompass lower mineral exports prompted by slower-than-expected growth in China, as well as uncertainties on coal offtake agreements. Additional risks include inflationary pressures stemming from both further domestic fiscal expansion and heightened geopolitical tension in the Middle East, potentially resulting in higher oil prices.
In the country there are 4 million citizens with a nominal GDP of US$4.947, the half of world’s average and the road infrastructures still need to be developed, while the main private transportation within the only existing metropolitan area, the capital, Ulaanbaatar, where over 1.25 million people live, is based on 2-wheelers.
