Peruvian Motorcycle Market has lost speed in 2019, after three consecutive all-time records. The market fell 5.7% affected by a less positive economic environment and an increase in taxes. However, it is still one of the largest in the world, ranking 26th, with more than 200 brands battling it out. The leader is Sling, but many brands shine, including Hoarse, Italika Y KTM.
Peruvian market overview
The motorcycle industry is a relevant sector within Peruvian industrial production with a large group of active manufacturers with a local plant, who came here from Japan, China and India to challenge the various local brands.
The market could be considered broken down into two different types of customer areas, with the metropolitan area around the capital Lima, similar to the other South American metropolis, with demand for scooters, mopeds and tricycles for commercial purposes. In the rest of the country, characterized by still poor road infrastructure development, demand is focused on off-road / enduro or four-wheel ATV models.
In the country, the “tricycle” segment is really relevant, accounting for about 30% of the total market for 2/3 wheels that add up to more than 250,000 units per year.
However, we focus our activity on the study of the two-wheeled vehicle industry (moped, scooter and motorcycle) and in this case the industry never reached 200k in a single year.
In the last decade, the trend was positive, with a volume that reached the historical record set in 2018 at 181,906 units, driven by economic development and the increasing correlative demand for individual mobility for both business and pleasure. Like all Latin Americans in general, Peruvians love motorcycles and are big fans of the development of the industry and racing activities.
The growth is remarkable, for the third consecutive year, considering the introduction, in May 2018, of the Selective Consumption Tax (ISC), a new tax for all new vehicles sold for private use, with 10% owed for gasoline vehicles and 20% for diesel.
The market is one of the most relevant in South America with a stable annual volume above 250k. This market ranks as the fifth largest in Latin America after Brazil, Mexico, Colombia, Guatemala, Ecuador and Argentina.
Globally in 2019 the market ranked 26th.
In 2019 the market lost 5.7%
According to data released by the Minister of Transport and Infrastructure, in 2019 the market was affected by a non-positive economic environment, losing ground month after month closing the year with 171,587 sales (excluding tricycles) losing 5.7%.
More than 200 brands are distributed in the country, while the leader is the Japanese giant Sling, with more than 22% market share, a share lower than usual for them. The second player is a local producer, named Hoarse with more than 10% participation, followed by India Bajaj Auto, one of the best players in Latin America.
Almost successful is the Mexican brand, Italika and the chinese Zongshen Y Lifan.
The best-selling among premium brands is KTM, which sells about four times more than the second premium, with an exceptional success score in recent years. KTM is helped by the structural conditions in Peru, but it seems that they are outperforming, considering the great distance with all competitors and the low sales of Harley davidson (generally strong in South America), Ducati, Triumph, Kawasaki.