Motorcycle production is up 18.2% in 2022

The motorcycle segment continues to recover after difficult times. Last year ended with 1.36 million units registered, a growth of 17.7% compared to 2021. Sales were the best since 2014, according to data from Fenabrave (association of vehicle distributors).

Production grew 18.2% in 2022 compared to the previous year. According to Abraciclo, which brings together motorcycle manufacturers, 1.41 million units were assembled between January and December.

The good numbers now help to circumvent problems that started well before the Covid-19 pandemic. After the production record recorded in 2011, when 2.14 million units left the factories, a long period of decline followed, which lasted until 2017.

In the downturn, political and economic crises added to financing constraints. The credit factor pushed consumers away, especially in the motorcycle segments with more affordable prices. Marcos Fermanian, President of Abraciclo, says that the current moment is very different.

“Certainly credit is not a priority concern now”, says the executive. “The institutions that operate in our market are disputing consumers, and this dispute should continue to be fiercer.”

The purchase modalities include the consortium. Fermanian says that, in this case, it is not a way of saving to make a planned acquisition, as in the automobile segment. In the two-wheel sector, it is a more affordable way to get a motorcycle and use it, for example, for work.

It was at this point that the pandemic forced the industry to turn around. The demand for motorcycles rose sharply due to the heating of the logistics segments. Delivery from restaurants and stores has become an alternative amid wage cuts and high unemployment.

But problems arose with a lack of components and production stops to contain the rise in cases of Covid-19. Manaus Industrial Pole was heavily affected by the pandemic, especially during the lack of oxygen crisis. In early 2021, even cylinders that would be used on production lines were sent to hospitals.

The queue reached 100,000 motorcycles, a situation that was only normalized in early 2022. Today, there is a balance between supply and demand, with an increase forecast for 2023.

Abraciclo believes that production will grow 9.7% this year, reaching 1.55 million units. If it materializes, this volume could once again place Brazil among the five largest motorcycle manufacturers in the world. The country closed 2022 in seventh position in this ranking.

In a note, Marcos Fermanian states that demand is gradually returning, which moves the assembly lines, but there are points that generate concern.

“We are attentive to possible economic uncertainties, a consequence of the increase in global production costs, the definition of the new government’s policy, the progress of political and administrative reforms and the Brazil Cost factor”, says the president of Abraciclo.

Another issue raised by Fermanian is the doubt about future fuel prices. In this case, however, the expected rise with the resumption of PIS/Cofins charges on gasoline and ethanol –scheduled for March– may have different effects.

It is possible that some of those interested in purchasing motorcycles will give up the purchase due to the increase in expenses with use. On the other hand, the increase in prices at gas stations may boost sales because of the demand for individual means of transport that are more economical than cars.

In sales distribution, the Southeast region appears in first place, with 38.3% share. The Northeast comes in second place (29.8%), followed by the North (12.8%), South (9.7%) and Midwest (9.6%).

The best-selling motorcycles are in the street segment, which includes the leader Honda CG 160. The Japanese brand holds 73% of the national market.

Despite the uncertainties, there is optimism. An increase of 9.4% is expected in registrations, with 1.49 million units sold throughout this year. Abraciclo also foresees growth of 6.7% in exports, with 59 thousand units shipped mainly to Latin American countries.

The expected rise is essential for manufacturers to recoup the investments made to adapt their products to the fifth phase of Promot (Program for the Control of Air Pollution by Motorcycles and Similar Vehicles).

Since January 1st of this year, all motorcycles produced in Brazil must comply with the new anti-pollution regulations. According to data from the program, there has been a reduction of at least 90% of emissions over the last 20 years.