Anyone who has spent time in Latin America knows how much the population relies on motorcycles. With household income remaining low for most families and commute times being egregious for many big-city car owners, bikes are the often best solution for getting around.
According to a new forecast by TechSci Research, the popularity of two-wheelers is only set to grow. The company’s “South America Two-Wheeler Market” report has predicted that the combined market for both motorcycles and scooters on the continent will eclipse $7 billion USD in sales by 2021.
The growth of the motorcycle market in Colombia was on display earlier this year at the Feria de las Dos Ruedas in Medellín bike show. (Credit: Loren Moss)
The 261-page analysis looks at different locations and segments of the industry in South America. Its conclusion is that the story is largely similar across the board: There is a growing demand for scooters, a lack public transport infrastructure, and a rising young population that will combine to drive demand for two-wheelers.
The Colombian market is one of the brights spots. It is already the second largest in the region behind Brazil, and TechSci Research has projected steady growth for the nation, with the bulk of that coming from the already-established providers.
To shed some more insight on how the bike industry will grow in Colombia, Finance Colombia recently got the chance to speak with Karan Chechi, research director at TechSci Research.
Finance Colombia: Generally, what did the report find about the South American market overall?
Karan Chechi: The growing presence of various multinational companies — such as Honda, Suzuki, Yamaha, Bajaj, BMW, Lifan, and Kawasaki — coupled with increasing penetration of domestic players…