Covering the Industry's Economic, Legal & Financial Issues

MexicanAutomotive covers the Mexican automotive and auto parts industries, and is published monthly in English and Spanish. MexicanAutomotive reports on general Mexican automotive industry topics, as well as economic, financial and legal issues affecting the North American automotive industry. Published by Cacheaux, Cavazos & Newton (CCN), subscriptions to MexicanAutomotive are free. CCN is an international law firm with offices in Texas and Mexico. The firm provides legal services in many practice areas including Automotive law to clients doing business in the NAFTA region.

Motorcycle boom in Mexico E-mail

The motorcycle boom is not a phenomenon exclusive to Mexico, but rather a global movement due to various reasons. Among these reasons is heavy traffic in large cities, less contamination by motorcycle engines as opposed to those in automobiles, low gasoline consumption, and shorter travel times. Motorcycles have seen increased popularity in major Mexican cities, not only for sports purposes, but also as a means of transportation. This phenomenon is evident by the fact that 76,961 new motorcycles were sold at the end of 2010 in Mexico, while as of September 2011, the figure has almost been surpassed since statistics show that 76,680 motorcycles have been sold. Taking into account that the last months of the year usually see a notable increase in the sale of vehicles, it is estimated that the increase will be greater than 20% in comparison to the previous year. While the sale of motorcycles has logically increased in the major Mexican cities of Mexico, Guadalajara and Monterrey, urban concentrations throughout Mexico have also experienced this phenomenon, since the motorcycle is an agile, rapid and efficient alternate means of transportation. It is very common to see motorcycles on the street with low cylinder capacity, including work scooters and motorcycles such as those used by food delivery personnel and messenger services. The majority of motorcycles sold (80% of the total amount) have 51 to 125 cubic centimeter cylinder capacities. Lower prices, accessible financing plans and greater use as a means of transportation are the reasons behind this boom in transportation. Tank Sports, a Mexican assembler, has grown 16 times its size from 2001 to 2005, as it recorded an annual cumulative increase in sales of 105% and assembled more than 22,000 motorcycles and a similar number of bicycles. How can the Mexican market take advantage of this boom in motorcycles? It can take advantage of this boom by having a greater number of motorcycle distributors, especially because exporters request distributors. The sales of parts and accessories for motorcycles create a real opportunity since every motorcycle sold requires storage batteries, tires, spark plugs, accessories, tail lights, pedals, screws and grills. Drivers also need safety helmets which are required throughout Mexico, protective gear and clothing, eye wear, and boots or shoes to drive on two wheels. In the same manner, good repair shops specialized in motorcycles are a good business opportunity in light of the motorcycle boom.

 

 
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