Delivery and fuel increase boost motorcycle sales, and manufacturers revise projections for 2022

While car registrations continue to fall in 2022, motorcycle sales grew 23.1% in the first half compared to the same period in 2021.

636,600 motorcycles were sold between January and June, according to Abraciclo (an association that brings together motorcycle and bicycle manufacturers).

The production registered an increase of 18%, with 671.3 thousand units assembled in the Industrial Pole of Manaus between the months of January and June.

“We have a market with an uptrend, with the advancement of delivery services [delivery] and the greater use of motorcycles in urban travel, in addition to the increase in fuel prices”, says in a note, Marcos Fermanian, president of Abraciclo.

With the good results, the association revised its forecasts for the year. Abraciclo now expects a 10.5% growth in production compared to 2021.

The new calculation provides for the assembly of 1.32 million units in the Industrial Pole of Manaus. The previous forecast was 1.29 million, which meant an increase of 7.9%.

The sales forecast was also revised. “The new perspective is that licenses will total 1.26 million units in 2022, with growth of 8.9% compared to last year”, says Fermanian. Before, the projection was for a high of 6.3% over 2021.

The segment of low-cylinder motorcycles (with engines up to 160 cm³) was the one that grew the most in the first half, with an increase of 27.1% over the same period last year. It is in this niche –which accounts for 83% of sales in Brazil– that are the models used by couriers.

“During the pandemic, these motorcycles came as an option to earn income, especially among Brazilians who lost their jobs in the service sector”, says the president of Abraciclo.

Fermanian, however, sees that this movement is starting to slow down, due to the return of activities and the emergence of new jobs. But the executive believes that the level of sales will remain high, and the licensing of motorcycles for daily commuting should continue to expand.

In addition to having more affordable prices, motorcycles consume less gasoline or ethanol. According to a study carried out by Ipsos Brasil, the price of fuel is the main obstacle to buying a car. This factor was cited by 43.1% of the 1,549 respondents in the survey conducted in March – before the price reduction at gas stations.

With the fall in values, perhaps the supply factor loses a little weight at the time of purchase, but there is another critical point: the accumulated inflation of cars, which has been higher than that of motorcycles.

In July 2020, a brand new Renault Kwid Zen was sold for R$39,600. Today the car is found for R$ 63,300 in new model stores, according to the Fipe table (Fundação Instituto de Pesquisas Econômicas). This is an increase of 59.8% in two years.

In the same period, the Honda CG 160 Start motorcycle went from R$10,200 to R$15,500, accumulating an increase of 52%.

Another problem is the increase in credit, driven by the successive readjustments of the Selic (basic interest rate). By dealing with higher values, the automobile segment is strongly affected by the barriers to financing.

Even the problems in the supply of components affect the two-wheel sector less. Low-displacement motorcycles use few semiconductors – so the pace of production has remained stable, while stoppages continue to occur in passenger car factories.

The first half ended with a 5% drop in the production of light and heavy vehicles compared to the same period in 2021, which made Anfavea (association of automakers) review its forecasts for 2022. 1.09 million units were assembled between January and June.

The entity now expects the year to end with a 4.1% rise in manufacturing. Regarding sales, the expectation is for an increase of 1% over last year.

In January, Anfavea expected that 2.46 million vehicles would be produced in 2022, which would represent a growth of 9.4% over 2022. In sales, the expectation was for a high of 8.5%.