South America Two-Wheeler Market Size
| Icons | Lable | Value |
|---|---|---|
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 15.09 Billion |
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Market Size (2030) | USD 22.28 Billion |
|
Largest Share by Propulsion Type | ICE |
|
|
CAGR (2024 - 2030) | 6.71 % |
|
Largest Share by Country | Brazil |
|
|
Market Concentration | Medium |
Major Players |
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|
*Disclaimer: Major Players sorted in alphabetical order. |
South America Two-Wheeler Market Analysis
The South America Two-Wheeler Market size is estimated at 15.09 billion USD in 2024, and is expected to reach 22.28 billion USD by 2030, growing at a CAGR of 6.71% during the forecast period (2024-2030).
15.09 Billion
Market Size in 2024 (USD)
22.28 Billion
Market Size in 2030 (USD)
12.00 %
CAGR (2017-2023)
6.71 %
CAGR (2024-2030)
Largest Segment by Propulsion Type
98.59 %
value share, ICE, 2023
ICE two-wheelers dominate due to their affordability, widespread availability, and well-established refueling infrastructure across South America.
Fastest-growing Segment by Propulsion Type
18.88 %
Projected CAGR, Hybrid and Electric Vehicles, 2024-2030
Electric two-wheelers are the fastest-growing due to increasing government incentives, rising fuel prices, and growing consumer awareness of sustainable transportation options.
Largest Segment by Country
48.88 %
value share, Brazil, 2023
Brazil leads due to its large population, significant two-wheeler manufacturing industry, and high consumer demand for affordable and efficient personal transportation.
Leading Market Player
39.54 %
market share, Honda Motor Co. Ltd., 2023
Honda Motor leads the South American two-wheeler market due to its diverse product offerings, strong brand recognition, and extensive dealer network.
Second leading Market Player
12.71 %
market share, Yamaha Motor Company Limited, 2023
Yamaha is the second leading player in the South American two-wheeler market due to popular product offerings, extensive distribution network, and a strong reputation for reliability.
The South American two-wheeler market is growing by blending traditional and electric preferences, driven by tech, policy, and sustainability
- In 2023, the South American market for two-wheelers saw a modest increase, with sales reaching 3,010,000 units from 2,980,000 units in 2022. This growth indicates a steady demand for two-wheelers as essential transportation tools in the region, reflecting the economic recovery, urbanization trends, and the increasing need for affordable mobility solutions. The ongoing demand for two-wheelers is supported by a mix of traditional ICE models and a growing interest in hybrid and EVs.
- The shift toward electric two-wheelers, although still in its early stages compared to global standards, is gaining momentum, fueled by improvements in EV infrastructure, governmental incentives aimed at reducing carbon emissions, and a growing consumer consciousness toward environmental sustainability. The forecasted data indicate continued growth in the two-wheeler market across South America, with sales projected to reach 4,220,000 units by 2030. This expected growth trajectory highlights not only the enduring appeal of two-wheelers as a convenient and cost-effective mode of transportation but also a significant shift in market dynamics toward electrification.
- As technological advancements make electric two-wheelers more accessible and governments enhance supportive policies, the market is poised for a transformative shift toward sustainable mobility. This period will likely witness an increasing integration of electric models into the mainstream two-wheeler market, reflecting broader global trends toward environmental responsibility and innovation in transportation.
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Two-wheelers are preferred in South America for urban mobility due to affordability, with varying adoption rates across countries
- The two-wheeler market in South America has a very strong preference for motorcycles and scooters as economical and practical transportation options. While economic challenges and safety concerns are prevalent, the potential for growth, especially in the electric two-wheeler segment, presents opportunities for manufacturers and policymakers to cater to evolving consumer needs and sustainability goals.
- The two-wheeler market in South America reflects diverse preferences and usage patterns across different countries, influenced by factors such as urbanization, economic conditions, and transportation infrastructure. Brazil is the largest two-wheeler market in South America, with motorcycles being the preferred mode of transportation for a significant portion of the population. The market is driven by the need for affordable and efficient transportation solutions, especially in urban and semi-urban areas. Brazil has a robust local manufacturing industry, with major global and local brands offering a wide range of two-wheelers.
- The country also sees significant interest in off-road motorcycles due to its diverse terrain. The two-wheeler market in Argentina caters to a mix of commuters looking for cost-effective transport solutions and enthusiasts who prefer motorcycles for leisure. Economic fluctuations have impacted the market, but two-wheelers remain a popular choice due to their low cost of ownership and operation. There is a growing interest in electric models, although the market is still in its early stages.
South America Two-Wheeler Market Trends
Surging demand and government incentives propel South America's electric vehicle market
- Countries like Brazil and Argentina in South America show significant potential in the automobile market. The South American vehicle industry has witnessed notable growth in recent years. Notably, the region has seen a rising demand for electric vehicles (EVs), especially in the passenger car segment. This surge can be attributed to factors like heightened awareness, growing environmental concerns, and governmental initiatives promoting EV adoption. In fact, EV sales in the region saw a notable increase, growing by 17.95% in 2022 compared to 2021.
- South America, with its diverse markets, is poised for a surge in electric vehicles. Brazil, in particular, is eyeing a shift toward electric buses, driven by its focus on renewable power generation and its abundant reserves of niobium and lithium, crucial for EV battery development. A significant move in this direction came in December 2022 when Sao Paulo banned diesel bus purchases and announced plans to deploy 2600 electric buses by 2024-end. Similar trends in other South American nations are expected to drive vehicle electrification from 2024 to 2030.
- Government policies and incentive programs across South American nations are set to be key drivers for vehicle electrification in the region. Tax benefits, for instance, are playing a pivotal role. Colombia's government, for instance, is leveraging incentives and subsidies with an ambitious target of putting 600,000 EVs on its roads by 2030, aiming to tackle carbon emissions. With similar initiatives anticipated in other South American countries, the sales of EVs are expected to witness a surge from 2024 to 2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- South America's demographic narrative, represented by Brazil and Colombia, showcases a story of consistent growth, with Brazil experiencing a pronounced surge
- Brazil and Colombia are expected to see an increase in consumer spending for vehicle purchases (CVP), indicating a recovering automotive market and growing consumer confidence
- From 2017 to 2022, South American auto loan interest rates unveiled a diverse economic landscape. Argentina's rates, marked by turbulence, underscore the nation's economic instability. Meanwhile, Brazil's rates, though initially high, witnessed a decline, signaling stabilization efforts. In contrast, Colombia's rates remained moderate, mirroring an upward trajectory in its economic conditions
- South America’s surging demand for electric vehicle batteries: falling costs and strategic alliances
- South America witnessed significant fluctuations in diesel and gasoline prices due to the influence of external factors
- During 2017-2030, Brazil and Colombia displayed contrasting economic paths. While both faced downturns around 2020, Brazil's GDP per capita showed recovery by 2023, whereas Colombia witnessed a slight decline
- Projections indicate a trend toward economic stabilization and controlled inflation in the region, highlighting a concerted push to restore equilibrium and foster growth
- South America is steadily building its EV infrastructure, with both slow and fast charging stations witnessing significant growth
- South America's electrification in the automotive sector shows fluctuating trends across vehicle segments
South America Two-Wheeler Industry Overview
The South America Two-Wheeler Market is moderately consolidated, with the top five companies occupying 61.02%. The major players in this market are Bajaj Auto Ltd., Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Suzuki Motor Corporation and Yamaha Motor Company Limited (sorted alphabetically).
South America Two-Wheeler Market Leaders
Bajaj Auto Ltd.
Honda Motor Co. Ltd.
Kawasaki Heavy Industries Ltd.
Suzuki Motor Corporation
Yamaha Motor Company Limited
Other important companies include Harley-Davidson, Hero MotoCorp Ltd., KTM Motorcycles, Royal Enfield, TVS Motor Company Limited.
*Disclaimer: Major Players sorted in alphabetical order.
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South America Two-Wheeler Market News
- September 2023: KTM India launched the two all-new, single-cylinder Duke 390 and 250 motorcycles priced at INR 310,520 and INR 239,000 respectively.
- July 2023: Harley-Davidson spinoff LiveWire Unveils Its Second Motorcycle – and It Can Hit 103 MPH.
- July 2023: Hero Motocorp and Harley-Davidson launched their co-developed premium motorcycle – the Harley-Davidson X440 in India from a starting price of INR 229 thousand and going to INR 269 thousand.
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South America Two-Wheeler Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. Population
2.2. GDP Per Capita
2.3. Consumer Spending For Vehicle Purchase (cvp)
2.4. Inflation
2.5. Interest Rate For Auto Loans
2.6. Impact Of Electrification
2.7. EV Charging Station
2.8. Battery Pack Price
2.9. New Xev Models Announced
2.10. Fuel Price
2.11. Regulatory Framework
2.12. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
3.1. Propulsion Type
3.1.1. Hybrid and Electric Vehicles
3.1.2. ICE
3.2. Country
3.2.1. Argentina
3.2.2. Brazil
3.2.3. Rest-of-South America
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. Bajaj Auto Ltd.
4.4.2. Harley-Davidson
4.4.3. Hero MotoCorp Ltd.
4.4.4. Honda Motor Co. Ltd.
4.4.5. Kawasaki Heavy Industries Ltd.
4.4.6. KTM Motorcycles
4.4.7. Royal Enfield
4.4.8. Suzuki Motor Corporation
4.4.9. TVS Motor Company Limited
4.4.10. Yamaha Motor Company Limited
5. KEY STRATEGIC QUESTIONS FOR VEHICLES CEOS
6. APPENDIX
6.1. Global Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (DROs)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
List of Tables & Figures
- Figure 1:
- POPULATION TRENDS, VOLUME IN UNITS, SOUTH AMERICA, 2017 - 2030
- Figure 2:
- GDP PER CAPITA AT CURRENT PRICES, VALUE IN USD, SOUTH AMERICA, 2017 - 2030
- Figure 3:
- AVERAGE CONSUMER SPENDING PER CAPITA ON PURCHASE OF VEHICLES, VALUE IN USD, SOUTH AMERICA, 2017 - 2030
- Figure 4:
- INFLATION RATE AT AVERAGE CONSUMER PRICES, PERCENTAGE CHANGE, SOUTH AMERICA, 2017 - 2030
- Figure 5:
- AUTO LOAN INTEREST RATES, PERCENTAGE, SOUTH AMERICA, 2017 - 2022
- Figure 6:
- ELECTRIC VEHICLE MARKET PENETRATION RATE, BY VEHICLE TYPE, PERCENTAGE OF VOLUME, SOUTH AMERICA, 2017 - 2030
- Figure 7:
- CHARGING STATION DEPLOYMENT, BY TYPE, VOLUME IN UNITS, SOUTH AMERICA, 2017 - 2022
- Figure 8:
- AVERAGE LITHIUM-ION BATTERY PACK PRICE, VALUE IN USD, SOUTH AMERICA, 2017 - 2030
- Figure 9:
- ANNOUNCEMENT OF NEW XEV MODELS, BY VEHICLE TYPE, VOLUME IN UNITS, SOUTH AMERICA, 2023 - 2027
- Figure 10:
- FUEL PRICE, BY FUEL TYPE, USD/LITER, SOUTH AMERICA, 2017 - 2022
- Figure 11:
- SOUTH AMERICA TWO-WHEELER MARKET, VOLUME IN UNITS, 2017 - 2030
- Figure 12:
- SOUTH AMERICA TWO-WHEELER MARKET, VALUE IN USD, 2017 - 2030
- Figure 13:
- SOUTH AMERICA TWO-WHEELER MARKET, BY PROPULSION TYPE, BY VOLUME IN UNITS, 2017 - 2030
- Figure 14:
- SOUTH AMERICA TWO-WHEELER MARKET, BY PROPULSION TYPE, BY VALUE IN USD, 2017 - 2030
- Figure 15:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 16:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 17:
- SOUTH AMERICA TWO-WHEELER MARKET, BY HYBRID AND ELECTRIC VEHICLES, BY VOLUME IN UNITS, 2017 - 2030
- Figure 18:
- SOUTH AMERICA TWO-WHEELER MARKET, BY HYBRID AND ELECTRIC VEHICLES, BY VALUE IN USD, 2017 - 2030
- Figure 19:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 20:
- SOUTH AMERICA TWO-WHEELER MARKET, BY ICE, BY VOLUME IN UNITS, 2017 - 2030
- Figure 21:
- SOUTH AMERICA TWO-WHEELER MARKET, BY ICE, BY VALUE IN USD, 2017 - 2030
- Figure 22:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 23:
- SOUTH AMERICA TWO-WHEELER MARKET, BY COUNTRY, BY VOLUME IN UNITS, 2017 - 2030
- Figure 24:
- SOUTH AMERICA TWO-WHEELER MARKET, BY COUNTRY, BY VALUE IN USD, 2017 - 2030
- Figure 25:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY COUNTRY, 2017 - 2030
- Figure 26:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY COUNTRY, 2017 - 2030
- Figure 27:
- SOUTH AMERICA TWO-WHEELER MARKET, BY ARGENTINA, BY VOLUME IN UNITS, 2017 - 2030
- Figure 28:
- SOUTH AMERICA TWO-WHEELER MARKET, BY ARGENTINA, BY VALUE IN USD, 2017 - 2030
- Figure 29:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 30:
- SOUTH AMERICA TWO-WHEELER MARKET, BY BRAZIL, BY VOLUME IN UNITS, 2017 - 2030
- Figure 31:
- SOUTH AMERICA TWO-WHEELER MARKET, BY BRAZIL, BY VALUE IN USD, 2017 - 2030
- Figure 32:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 33:
- SOUTH AMERICA TWO-WHEELER MARKET, BY REST-OF-SOUTH AMERICA, BY VOLUME IN UNITS, 2017 - 2030
- Figure 34:
- SOUTH AMERICA TWO-WHEELER MARKET, BY REST-OF-SOUTH AMERICA, BY VALUE IN USD, 2017 - 2030
- Figure 35:
- SOUTH AMERICA TWO-WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 36:
- SOUTH AMERICA TWO-WHEELER MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2017 - 2030
- Figure 37:
- SOUTH AMERICA TWO-WHEELER MARKET, MOST ADOPTED STRATEGIES, 2017 - 2030
- Figure 38:
- SOUTH AMERICA TWO-WHEELER MARKET SHARE(%), BY MAJOR PLAYERS, 2021
South America Two-Wheeler Industry Segmentation
Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type. Argentina, Brazil, Rest-of-South America are covered as segments by Country.
- In 2023, the South American market for two-wheelers saw a modest increase, with sales reaching 3,010,000 units from 2,980,000 units in 2022. This growth indicates a steady demand for two-wheelers as essential transportation tools in the region, reflecting the economic recovery, urbanization trends, and the increasing need for affordable mobility solutions. The ongoing demand for two-wheelers is supported by a mix of traditional ICE models and a growing interest in hybrid and EVs.
- The shift toward electric two-wheelers, although still in its early stages compared to global standards, is gaining momentum, fueled by improvements in EV infrastructure, governmental incentives aimed at reducing carbon emissions, and a growing consumer consciousness toward environmental sustainability. The forecasted data indicate continued growth in the two-wheeler market across South America, with sales projected to reach 4,220,000 units by 2030. This expected growth trajectory highlights not only the enduring appeal of two-wheelers as a convenient and cost-effective mode of transportation but also a significant shift in market dynamics toward electrification.
- As technological advancements make electric two-wheelers more accessible and governments enhance supportive policies, the market is poised for a transformative shift toward sustainable mobility. This period will likely witness an increasing integration of electric models into the mainstream two-wheeler market, reflecting broader global trends toward environmental responsibility and innovation in transportation.
| Propulsion Type | |
| Hybrid and Electric Vehicles | |
| ICE |
| Country | |
| Argentina | |
| Brazil | |
| Rest-of-South America |
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Market Definition
- Vehicle Type - The category covers motorized two-wheelers.
- Vehicle Body Type - This includes Scooters and Motorcycles, while Kick-scooters and Bicycles are excluded.
- Fuel Category - Coverage extends to vehicles powered by Internal Combustion Engines (ICE) and electric propulsion systems.
| Keyword | Definition |
|---|---|
| Electric Vehicle (EV) | A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles. |
| BEV | A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models. |
| PEV | A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids. |
| Plug-in Hybrid EV | A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally. |
| Internal combustion engine | An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel. |
| Hybrid EV | A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking. |
| Commercial Vehicles | Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV). |
| Passenger Vehicles | Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat. |
| Light Commercial Vehicles | Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category. |
| M&HDT | Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category. |
| Bus | A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses. |
| Diesel | It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed. |
| Gasoline | It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. |
| LPG | It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study. |
| CNG | It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines. |
| HEV | All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices. |
| PHEV | PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly. |
| Hatchback | These are compact-sized cars with a hatch-type door provided at the rear end. |
| Sedan | These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage. |
| SUV | Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles. |
| MPV | These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all its reports.
- Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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