Motorcycle sales fall, but less than car sales: the keys to the two-wheeled market

Motorcycle sales fall, but less than car sales: the keys to the two-wheeled market
Motorcycle sales fall, but less than car sales: the keys to the two-wheeled market

The motorcycle market in Argentina has a different rhythm than that of cars. While the latter had an interannual decrease in May of 13.8%, motorcycles fell 2.8%, close to a tie. That is to say, the abrupt decline observed in several of the economy was slight last month for two-wheeled vehicles.

The high value of 0KM cars compared to salaries led many to turn to motorcycles. For example, in 2024 a trend that had also been seen in 2023 is taking hold, and is no longer a novelty: More motorcycles are sold in the country than cars. A new normal. In the first five months, 170,566 motorcycles and 152,339 cars were patented. And although in the accumulated until May the decrease is 16.9% year-on-yearthere is optimism in the sector to reverse the decline in the second half and end the year in volumes somewhat lower than those of 2023, when 470 thousand units were sold.

From the sector they indicated that there are prospects of stopping the fall. “The motorcycle market is recovering. The expectation we had until March was a drop of 26%, with the recovery in April the drop was attenuated and was at 20%. In May he continued that path. We understand that despite the great devaluation we had in December, we will be in a market close to 400,000 motorcycles annually,” he said. Lino Stefanuto, president of the Chamber of Motorcycle Manufacturers (CAFAM).

The head of the entity was optimistic about the reduction in rates. “Financing appears, such as the new plan that came out now with up to 12 installments, with a reference rate of 50%, which will be through all the cards,” he stated.

While, Alejandro Módica, Manager of the motorcycle division of Honda Motor of Argentina, a brand that maintains market leadership, maintained that it expected the impact of economic changes, although the effects were not as long-lasting. “Volumes are maintaining around 40,000 monthly patents. However, conditions are changing quite a bit in the lower displacement segments: prices are very competitive by all brands. Yes, there is a significant drop in the average displacement, and what is interesting is to observe that beyond what is happening at the general market level, Honda remains strong in volumes, as well as in the rest of the segments.

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Like Stefanuto, CAFAMthe Honda manager foresees that the Annual sales reach 400 thousand units. “We expect a market that remains similar in volume to what it was last year,” she added.

For its part, Martín De Gaetani, director of Institutional Relations and Press at Grupo La Emilia (which produces and markets Motomel, among other brands), noted: “The motorcycle market in the first five months of the year is down 17%. The truth is that it is a number that at the beginning of the year sounds very good, because greater falls were expected. We are positive that the market is evolving well.” “Besides, the year-on-year drop is reducing,” he stated.

Financing and production

Among the positive aspects observed in the industry, the new lines of financing appear: “Mechanisms such as simple installments, which removed the cap on the amount to be financed in 12 installments, are important. We see that credit is beginning to be reactivated, which is essential for the motorcycle market. It makes us think about a market above 420,000 unitslower than 2023, but it is getting closer to those values,” said De Gaetani, from La Emilia, who hopes that “more financial tools” will appear.

In that sense, Alejandro Modica of Honda gave as an example the model CB300, “for which we put together a program together with a major bank to be able to offer a security loan, in this case with half the value of the motorcycle financed in 12 interest-free installments, and the result was wonderful.” The Japanese brand executive added that they are making efforts to minimize the impact on prices. “We are coming from months where, due to high inflation, we had to make adjustments to be able to keep the business running, but we are trying to make this adjustment the minimum necessary,” he explained.

Stefanuto, from CAFAM, He added that the smaller displacement motorcycles were more impacted by the drop in activity. And, regarding financing, he believes that there will be a limit on the amounts that credit cards can be financed. “The plastics will be the supporters, but the amount will also limit the maximum amount of money they will be able to finance,” he added.

Meanwhile, from Honda, which produces motorcycles in the town of Campana, they indicated that The intention is to increase volume by 20% in the second half of the year. “At the production level we are also working on many projects, both launching products and also thinking about exporting, whether they are pieces that we have already started to send to Brazil as well as being able to expand the export of motorcycles to different countries in the region, mainly in South America,” said Alejandro Módica.

For its part, The Emiliawhich has production near San Nicolás for the brands Motomel, Benelli, Suzuki, among others, clarify that the market is recovering from a production point of view. “We are producing normally, luckily everything we produce is sold, we are fine,” said De Gaetani.

Source: Ambito

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