Brazil is the largest motorcycle producer in South America and the fifth largest motorcycle market in the world. The situation of the motorcycle industry in this region is very optimistic. Coupled with the local government’s support for motorcycles, the sustainable development potential of the motorcycle industry is huge.
1. The development status of the Brazilian motorcycle market.
Since the 1990s, Brazil’s motorcycle production has been rising steadily from less than 80,000 units. By 2008, its growth rate reached 275% compared to 1997. In recent years, the annual sales of Brazilian motorcycles The growth rate is also maintained at around 45%.
In the Brazilian motorcycle market, low- and medium-displacement lightweight models are the most common, especially the 100-125CC economy type, which is mainly used for commuting, transportation, and sourcing (100-250CC is the most common); and the demand for high-displacement models is relatively high. good. In the motorcycle industry, the sales of complete vehicles are mainly 4,500 to 7,000 reais.
At present, the total number of motorcycles in Brazil has exceeded 7 million, and sales are still gradually expanding with an upward trend, and there is a trend to replace low-displacement cars.
2. Why is the Brazilian motorcycle market growing rapidly?
This continuous development trend of the Brazilian motorcycle market is closely related to Brazil’s regional geographic environment, national policies, the stage of social construction, and the degree of saturation of the motorcycle market.
The main use of Brazilian motorcycles is now gradually expanding or even replacing low-displacement cars. At present, motorcycles are an important tool for urban leisure, a convenient means of transportation for the urban service industry, an important means of short-distance and inter-city travel for middle- and low-income families, and an important means of transportation in rural areas, farms and underdeveloped areas. Information transfer tool. In the consumer group, men between the ages of 18 and 45 account for 80%.
Secondly, there is another important reason for the profound Brazilian motorcycle culture. The Brazilian International Two-wheeler Exhibition (TWO WHEELS TRADE SHOW) is hosted by the German-invested MG-Media Group do Brasil Exhibition Company. Held every two years.) is the largest, most professional, and most concerned international two-wheeler and accessories exhibition in Latin America. Including motorcycles, light motorcycles, electric motorcycles, three-wheeled motorcycles and special-purpose motorcycles, Scoote, motorcycle generators and related products, tires, helmets, motorcycle clothing and supplies, motorcycle tourism and related outdoor products , Electronic equipment, motorcycle repair equipment and motorcycle-related products, various bicycles and spare parts, etc.
3. Analysis of Brazilian motorcycle brands.
In the Brazilian motorcycle market, the Japanese industry occupies the main market share, reaching more than 85%, of which Honda has an exclusive market share of approximately 75%; China Jialing Group Brazil last in the Brazil TRAXXoper years, and China Fengyun Automobile has entered the Brazilian motorcycle market. DAFRA (Chinese brand Haojue) already represents approximately 5% of the Brazilian motorcycle market. Together with other companies, Chinese brands represent approximately 10% of the Brazilian motorcycle market.
At present, the Rodobens Group, Brazil’s largest vehicle retailer, has imported motorcycle products from China and sold them in the states of Sao Paulo, Rio de Janeiro, Minas Gerais, Parana, etc.; and other local groups in Brazil also Successively cooperated with Chinese manufacturers to sell motorcycles in Brazil.
4. China’s development status and future trends in the motorcycle industry.
In addition to the continuous development of relations with China in recent years, Brazil introduced Chinese motorcycle brands. The fundamental reason was the price of “Made in China”. When Rodobens Group introduced Chinese motorcycle products, it made it clear that in terms of 100CC and 150CC motorcycle products, the price of Chinese motorcycle products was at least 20% cheaper than any motorcycle product on the Brazilian market.
Low prices are just a manifestation of the lack of core competitiveness of products, and the lack of technical support and process value for products will have less and less room for development in the future. With the continuous development of low-end motorcycles in other labor-intensive countries such as India and Vietnam, China will gradually lose its “low price” advantage. Then, Chinese motorcycles will not have a foothold in Brazil or even other overseas markets.
Many Chinese motorcycle companies have been paying more and more attention to this issue after learning from the “low-price trap” of the Vietnamese market. Many companies have begun to focus on improving their technical strength and ensuring product quality. DAFRA is an excellent representative of Chinese motorcycle manufacturers. In addition to vehicle manufacturers, China’s motorcycle parts manufacturers are also paying more and more attention to product quality. Now, many OEM parts suppliers of large international motorcycle brands are from China. Due to the highly developed manufacturing industry, China has targeted different markets around the world
Provide OEM accessories, A-level, B-level, and C-level accessories respectively.
China has been Pakistan’s largest trading partner for six consecutive years since FY2015, and is Pakistan’s largest source of imports and second largest export destination. According to statistics from the Ministry of Commerce of China, China’s non-financial direct investment in Pakistan will be USD 48.09 million in 2020. From an industry perspective, investment hotspots in steel production, textile processing, tire manufacturing, and motorcycle production. In the future, China and Brazil will have closer ties in the motorcycle industry.