Posted On: 2021-08-16
Upto 125 CC power non-electric motorcycles acquired the largest revenue share in the two-wheeler market of Colombia in recent years – 6Wresearch.
Colombia two-wheeler market witnessed modest growth during the period 2017-2020 owing to the increasing number of working population and improving lifestyles. Moreover, the inefficient public transportation system and rugged topography of Colombia led to growth in the demand for two-wheeler in the country. However, the pandemic situation caused by Covid-19 in 2020, led to a halt in assembling and manufacturing operations and disrupted the value chain and ecosystem of Colombia's two-wheeler market due to the government imposed nationwide lockdown. Although, the market has started reviving back in 2021 with the gradual lifting of lockdown restrictions and revival of supply chain disruptions.
According to 6Wresearch, the Colombia Two Wheeler Market size is projected to grow at a CAGR of 7.0% during 2021-2027. Rising traffic congestion with the development of roadways in the country under the Fourth Generation (4G) road infrastructure program 2014-2024 has contributed to the increase in demand for two-wheelers in Colombia. Additionally, a bilateral growth initiative between the Colombian government and the US International Finance Corporation to strengthen the economic development and infrastructure improvement would contribute towards the growth of employment and disposable income, which in turn would increase the demand for two-wheelers in the coming years.
According to Arjun Khurana, Research Associate, 6Wresearch, "By product types, non-electric two-wheeler emerged as a major market shareholder in terms of both revenues and volume during 2017-2020, and the same trend is anticipated to persist over the coming years, owing to better fuelling stations’ network and wider availability in the market in comparison to electric two-wheeler. However, the electric two-wheeler is expected to register significant growth during the forecast period on account of rising government initiatives for the promotion of e-vehicles, like Electric Mobility Law 2018 which reduced the tax rate on e-vehicles to 1%, and the launch of the National Strategy for Electric Mobility in 2019, which aims to promote the use of electric vehicles to reduce the overall carbon emissions in the country.”
"By non-electric two-wheeler power, upto 125 CC segment garnered the majority revenue and volume size in 2020 and the same segment would continue to dominate the market during the forecast period as well due to lower operating costs owing to their exemption from toll payments and vehicle tax under article 141 of the law.” Arjun further added.
According to Dhaval Chaurasia, Research Associate, 6Wresearch, "By regions, the Andean region acquired the largest revenue size in Colombia two-wheeler market in 2020 and the same trend is expected to continue during the forecast period as well, as the Andean region is a hub for service and the industrial sector with high population density in cities like Medellin, Bogota, and Cali, which drives the demand for two-wheelers for personal mobility and use in different services such as delivery and taxi services.”
Colombia Two-Wheeler Market (2021-2027)" report provides an in-depth analysis with 28 figures and 13 tables, covered in 84 pages. The report estimates and forecasts the Colombia two-wheeler market by product types and regions. The report provides an unbiased and detailed analysis of the ongoing trends, opportunities/ high growth areas, and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.