Latin America Two-Wheeler Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Scooter/Moped, Motorcycle), By Propulsion Type (ICE, Electric), By Country, By Competition, 2020-2030F

Market Overview:

The Latin America Two-Wheeler Market was valued at USD 1.82 Billion in 2024 and is expected to reach USD 2.27 Billion by 2030 with a CAGR of 3.68% during the forecast period. The Latin America two-wheeler market is experiencing notable momentum driven by increasing urbanization, rising fuel prices, and growing preference for cost-effective personal transport solutions. Consumers across urban and semi-urban zones are shifting toward two-wheelers for their agility in congested traffic, ease of parking, and lower maintenance costs. This shift is further supported by the growing penetration of financing options and digital marketplaces, making two-wheeler ownership more accessible. Manufacturers are responding by introducing models tailored for both daily commuting and delivery services, while also expanding their electric two-wheeler portfolios to meet evolving sustainability expectations.  For instance, the region witnessed sales growth from 3.7 million units in 2012 to 5.6 million units in 2023, with on-road motorcycles accounting for the highest market share.

Market Drivers

Increasing Demand for Affordable Personal Mobility

Rising living costs and high fuel prices are pushing consumers toward more economical transportation options. Two-wheelers offer a lower upfront cost, better fuel efficiency, and minimal maintenance expenses compared to cars, making them attractive for budget-conscious buyers. For daily commuting, especially over short to medium distances, two-wheelers strike a balance between cost and convenience. Individuals in densely populated zones and lower-income segments are finding two-wheelers to be practical solutions for navigating traffic while keeping ownership costs in check. The broad availability of entry-level models and flexible financing schemes further supports this trend. Financial institutions and digital lenders are extending low-interest loans, making even mid-range or electric variants more accessible. Rising economic pressures on households are driving consumers to cut costs wherever possible, and two-wheelers are positioned as value-for-money investments.

Expansion of Last-Mile Delivery Services

The rise of e-commerce, food delivery platforms, and courier businesses has intensified the need for efficient last-mile transportation. Two-wheelers are emerging as the preferred choice for delivery operations due to their agility, speed, and lower operating costs. Businesses across sectors are adopting motorcycles and scooters for fleet use to ensure timely and economical deliveries. The lightweight structure of two-wheelers allows them to maneuver through congested areas and reach destinations faster than larger vehicles, improving delivery turnaround times. Companies are scaling up operations by onboarding independent delivery riders or investing in dedicated two-wheeler fleets, which further boosts sales. This demand is being met with purpose-built commercial two-wheelers featuring enhanced load capacity, sturdy design, and durable components suited for daily use. As consumer expectations for faster deliveries grow, service providers are optimizing logistics using GPS-enabled scooters and centralized fleet management platforms. For instance, in Mexico, 70% of motorcycle purchases are linked to delivery work, reflecting strong demand from gig economy drivers. Brazil saw scooter sales grow at twice the rate of the overall market in early 2024, while off-road motorcycles dominate rural areas due to infrastructure gaps.

Rising Adoption of Electric Two-Wheelers

Growing environmental awareness and the rising cost of traditional fuels are accelerating the shift toward electric two-wheelers. Battery-powered scooters and motorcycles offer significantly lower running costs, quiet operation, and zero emissions, which appeal to both individual and commercial users. Governments and industry players are promoting adoption through tax incentives, reduced registration fees, and subsidies on electric models. Manufacturers are investing in R&D to enhance battery range, durability, and charging time, addressing major consumer concerns. Technological improvements in lithium-ion batteries and integration of lightweight materials are contributing to better performance and user satisfaction. Charging infrastructure is gradually expanding in commercial hubs, workplaces, and residential complexes, supporting the day-to-day use of electric vehicles. Ride-sharing and delivery firms are also exploring fleet electrification to lower long-term costs and align with environmental targets. For instance, Electric motorcycles hold a 3–4% share in Latin America, bolstered by subsidies.

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Key Market Challenges

Inconsistent Product Quality Across Segments

The two-wheeler market is challenged by variability in product quality, particularly among budget models. Some entry-level motorcycles and scooters use low-cost components to keep retail prices down, leading to compromised durability and performance over time. Inconsistent standards in manufacturing and quality control across smaller players affect customer confidence and create a perception of unreliability. Frequent repairs and short lifespans in certain models reduce long-term value, prompting users to reconsider repeat purchases. This issue is more evident in non-branded or substandard imports that may lack adequate safety features or fail to comply with evolving emission norms. For fleet operators and delivery workers, vehicle downtime due to mechanical faults disrupts productivity and revenue. The lack of uniform after-sales support and availability of genuine spare parts adds to maintenance concerns.

Limited Charging Infrastructure for Electric Models

The growth of electric two-wheelers faces a significant hurdle due to underdeveloped charging infrastructure. While electric scooters and motorcycles offer long-term cost and environmental benefits, their widespread adoption is hindered by limited access to fast and reliable charging facilities. Public charging networks are still in early development, and home-charging setups are not always feasible for apartment dwellers or users without dedicated parking spaces. Range anxiety remains a major concern, especially for daily commuters and delivery riders who need dependable travel distance coverage. The lack of standardized charging connectors and variable battery-swapping models also adds complexity. Businesses considering electric fleet deployment must account for downtime associated with charging and limited battery life during peak hours. These factors slow the pace of transition from internal combustion engines to electric mobility. For many consumers, convenience outweighs sustainability, making them reluctant to adopt EVs without sufficient infrastructure support.    

Key Market Trends

Integration of Smart Features and Digital Connectivity

Two-wheelers are undergoing a technological transformation with the inclusion of smart features that enhance user experience, safety, and convenience. Models are increasingly equipped with digital dashboards, Bluetooth connectivity, GPS navigation, remote diagnostics, and app-based controls. Riders can now receive service alerts, track performance metrics, and even immobilize their vehicles via smartphone apps. These innovations not only elevate product appeal but also position two-wheelers as connected mobility solutions rather than just transport tools. For fleet owners and delivery operators, telematics integration enables real-time monitoring, route optimization, and fuel efficiency tracking. The growing demand for smart and connected vehicles is pushing manufacturers to differentiate their offerings through technology. Younger consumers, in particular, are drawn to models with tech-enabled customization and infotainment options. These advancements are becoming standard even in mid-range segments, reducing the technology gap between premium and entry-level models.

Growth in Subscription-Based and Leasing Models

Flexible ownership models such as subscriptions and leases are gaining popularity in the two-wheeler market, especially among urban users and delivery workers. These models allow individuals to access a vehicle without the long-term commitment or upfront capital required for purchase. Monthly or pay-per-use plans offer maintenance coverage, insurance, and doorstep service, reducing user burden and improving accessibility. This approach appeals to gig economy workers who need reliable transport but lack the financial capacity or credit history for conventional loans. It also suits users who prefer to switch vehicles frequently or test electric variants without long-term risk. Startups and mobility platforms are scaling subscription services through digital apps, offering instant sign-ups and flexible tenures. Businesses managing delivery fleets are also leveraging leasing solutions to maintain operational agility while minimizing asset ownership.

Customization and Lifestyle-Oriented Product Segmentation

The market is witnessing growing interest in personalized two-wheeler experiences as buyers seek vehicles that reflect their lifestyle and identity. Custom paint jobs, accessories, ergonomic enhancements, and performance modifications are becoming popular among both enthusiasts and casual riders. Manufacturers are introducing variants tailored for specific user personas such as adventure touring, urban commuting, or retro aesthetics. This focus on lifestyle branding is influencing marketing strategies, showroom experiences, and after-sales services. Riders are also engaging with online communities and content platforms that promote unique vehicle builds and peer recommendations. Limited-edition models and collaborations with fashion or tech brands are gaining attention, creating exclusivity and emotional engagement. The aftermarket segment is benefiting from this trend, offering modular add-ons that support easy upgrades.  

Segmental Insights

Vehicle Type Insights

In 2024, motorcycles dominated the Latin America two-wheeler market by vehicle type, driven by their versatility, higher engine capacities, and broader appeal across personal and commercial use cases. Motorcycles are preferred for both short-distance commuting and long-distance travel, offering better speed, load-carrying ability, and terrain adaptability than scooters or mopeds. Their popularity extends to delivery services, where reliability and fuel efficiency are critical for gig workers and logistics operators. The availability of various engine displacements allows consumers to choose motorcycles tailored to their mobility and performance needs, from entry-level models to mid-range and high-powered variants. In many areas, motorcycles serve as a primary mode of transport, often replacing cars due to affordability and ease of navigation in congested routes.

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Country Insights

In 2024, Brazil remained the dominant region in the Latin America two-wheeler market, driven by its large population, high urbanization rate, and established two-wheeler culture. Motorcycles and scooters are widely used across both urban and rural zones for daily commuting, commercial deliveries, and utility purposes. Affordability, ease of maintenance, and fuel efficiency make two-wheelers a preferred mobility option, especially in areas with heavy traffic congestion. The expansion of delivery services and ride-hailing platforms further contributed to increasing two-wheeler adoption. Financing availability, growing availability of localized models, and wide dealership networks supported steady sales growth throughout the year. For instance, in 2024, Brazil's infrastructure investments hit a record high of approximately USD 45.5 billion, marking a 15% increase from the previous year. Private sector contributed around USD 34.6 billion, while public investment totaled USD 10.9 billion. Spending on transportation and logistics surged by 52% to reach USD 11 billion, and energy sector investment rose 27% to approximately USD 20.9 billion. Sanitation funding doubled to USD 6 billion compared to 2020. In contrast, telecommunications saw a 16% decline, falling to about USD 7.5 billion. Despite the growth, total infrastructure spending remained at just 2.2% of GDP, below the 4.3% needed for sustainable development.

Mexico followed as a key contributor to the regional two-wheeler market, benefiting from rising demand in urban centers where motorcycles serve both individual commuters and commercial delivery fleets. Many middle-income consumers turned to two-wheelers as a cost-effective alternative to cars amid rising living expenses. The country also experienced a shift toward more fuel-efficient and compact two-wheelers, aligning with changing mobility preferences. Urban mobility solutions, traffic congestion, and growing e-commerce activities helped sustain momentum in motorcycle usage across the country.

Colombia also showed strong two-wheeler activity, especially in cities where rapid population growth and increasing transport needs pushed consumers toward affordable commuting options. Two-wheelers are commonly used for both personal and commercial purposes, offering a practical solution in densely populated areas. The country’s logistics sector and last-mile delivery networks have seen rapid adoption of motorcycles due to their agility and cost benefits. With a strong presence of small businesses and delivery services, Colombia maintained a growing base of two-wheeler users across multiple sectors.

Recent Developments

• ​In 2025, Suzuki launched the V-Strom 160 in Latin America, featuring a 160cc engine, 17" alloy wheels, dual-channel ABS, and ADV-inspired design. Made in Brazil, it's not planned for India.
• In 2024, TVS Motor launched the HLX 150 5G in Congo, featuring a 150cc oil-cooled engine, LED headlamp, 5-speed gearbox, and rugged design. It's built for both daily commuting and utility use.
• Hero MotoCorp will begin operations in Brazil by Q4 FY2025, establishing a wholly owned subsidiary to manufacture and distribute two-wheelers. This marks its fifth overseas facility and entry into Latin America's largest two-wheeler market.
• Gogoro and Copec launched Latin America's first two-wheeler battery-swapping network in 2024, starting in Santiago and Bogotá, targeting both consumers and high-usage delivery riders with smart scooters and stations.

Key Market Players

• Hero MotoCorp Limited
• Bajaj Auto Ltd
• Yamaha Motor Co., Ltd
• Piaggio & C. S.p.A
• TVS Motor Company Limited
• Harley Davidson
• Suzuki Motor Corporation
• Kawasaki Heavy Industries, Ltd
• Honda Motor Co., Ltd
• 1BMW Motorrad

Report Scope:

In this report, the Latin America Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           Latin America Two-Wheeler Market, By Vehicle Type:

o    Scooter/Moped

o    Motorcycle

•           Latin America Two-Wheeler Market, By Propulsion Type:

o    ICE

o    Electric

•         Latin America Two-Wheeler Market, By Country:

o    Brazil

o    Argentina

o    Colombia

o    Chile

o    Peru

o    Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Latin America Two-Wheeler Market.

Available Customizations:

Latin America Two-Wheeler Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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