South America Two Wheelers Market Outlook, 2030

The two-wheeler industry in South America has long served as a backbone of personal and commercial mobility, particularly in countries marked by uneven infrastructure, dense urban populations, and socio-economic disparities. While not as vast as the Asian market, the two-wheeler sector in South America is both significant and evolving, shaped by a combination of affordability, practicality, and increasingly, technological advancement. From the bustling streets of São Paulo to the informal neighborhoods of Lima, motorcycles and scooters have emerged as indispensable tools for daily transportation, delivery services, and even informal economic activities.

In the face of rising fuel costs, inadequate public transit in many regions, and growing e-commerce demands, two-wheelers continue to provide an efficient, low-cost mobility solution for millions of South Americans. A significant recent development in the South American two-wheeler industry is the growing interest in electric mobility. While the transition to electric two-wheelers is still nascent compared to regions like Asia or Europe, the trend is gaining momentum. The rising cost of fuel, increasing environmental awareness, and government interest in decarbonizing transportation are contributing to the slow but steady adoption of electric models.

Urban centers are particularly ripe for this transition, as shorter commuting distances and stop-and-go traffic conditions align well with the capabilities of electric scooters and motorcycles. Local startups and regional distributors are beginning to offer electric models tailored to South American road conditions, while some governments are considering or implementing incentives such as reduced taxes and import duties on electric vehicles. However, challenges such as a lack of charging infrastructure, limited model variety, and consumer skepticism about battery performance and maintenance continue to impede rapid adoption.

According to the research report “South America Two-wheeler Market Outlook, 2030” the market is projected to add USD 2.93 Billion from 2025 to 2030.The regulatory environment across South America varies considerably, impacting market dynamics and growth potential. In countries with more supportive policies such as Brazil and Colombia registration, licensing, and financing processes are relatively streamlined, which encourages ownership. However, inconsistencies in safety regulations, pollution controls, and traffic management remain a concern. Motorcycle safety, in particular, is a pressing issue across the region.

High accident rates, limited enforcement of helmet laws, and underdeveloped road infrastructure contribute to a risky environment for riders. Addressing these concerns will be crucial not only for public health but also for the long-term sustainability of the sector. Regional governments are beginning to recognize this and are slowly pushing for stricter safety norms and public awareness campaigns, although enforcement remains uneven. In terms of product preference, South American consumers generally favor practical, durable, and low-displacement two-wheelers that offer reliability and low operating costs. Motorcycles in the 100-150cc range are the most popular, particularly for personal commuting and delivery jobs.

Scooters, while not as widely used as in Asia, are slowly gaining popularity among urban youth and female riders due to their ease of operation and modern styling. In parallel, there is also a growing niche market for premium motorcycles, especially in countries like Argentina and Chile, where wealthier consumers are drawn to brands such as BMW, Ducati, and Harley-Davidson for leisure and lifestyle purposes. However, these high-end segments remain small and are often impacted by economic volatility and import restrictions.

Market Drivers

• Low-Cost Personal Mobility for the Masses: In countries like Brazil, Colombia, and Argentina, motorcycles serve as a primary and affordable alternative to cars for millions, especially among low- and middle-income groups. High fuel prices, limited public transportation in peri-urban and rural areas, and economic constraints drive two-wheeler demand for both personal and commercial use.
• Growth of Delivery and Informal Gig Economy: The explosion of food delivery and e-commerce platforms (e.g., Rappi, iFood, Mercado Libre) has significantly boosted the demand for motorcycles. Two-wheelers offer a flexible, low-investment entry point for gig workers, creating strong demand for utility-focused bikes in urban centers.

Market Challenges

• Economic Volatility and Import Dependency: Many South American countries rely heavily on imported vehicles and components, making the market vulnerable to currency fluctuations, inflation, and trade policy shifts. This instability often leads to price hikes and supply chain disruptions, affecting affordability and accessibility.
• High Accident Rates and Weak Road Safety Enforcement: Inconsistent traffic law enforcement, poor rider education, and lack of safety infrastructure contribute to elevated accident and fatality rates. Limited adoption of helmets and protective gear further worsens the issue, posing challenges for long-term growth and public acceptance.

Market Trends

• Emergence of Electric Two-Wheelers and Local Startups: While still early-stage, countries like Colombia, Brazil, and Chile are seeing rising interest in electric scooters and motorcycles, led by startups and sustainability-focused policies. Battery-swapping and solar-powered charging stations are being explored in urban pilot programs.
• Local Assembly and Regionalization of Supply Chains: To counter import dependency and reduce costs, companies are increasingly investing in local assembly plants and forging partnerships within South America. Brazil, in particular, is a hub for regional production, supporting both domestic sales and exports across neighboring markets.

The 151-400 cc segment is growing in South America's two-wheeler market due to increasing demand for more powerful, versatile bikes suited for both urban commuting and longer-distance travel, especially among middle-class and younger riders.

In South America, the rising popularity of 151-400 cc two-wheelers reflects a shift in consumer preferences toward more powerful and flexible vehicles that go beyond basic urban commuting. This engine segment strikes a balance between fuel efficiency and performance, making it ideal for riders seeking greater acceleration, better handling on varied terrain, and the ability to comfortably travel longer distances all important in countries with large geographical spans like Brazil, Argentina, and Colombia. The growing middle class in the region, coupled with improved access to financing and aspirational ownership trends, has encouraged many consumers to upgrade from entry-level bikes to mid-range models.

Younger riders, in particular, are drawn to this category for its sportier designs, higher performance, and suitability for both daily use and recreational riding. Additionally, the expansion of road infrastructure and tourism in certain areas has created more opportunities for leisure travel on motorcycles, further increasing the appeal of this segment. Motorcycle manufacturers have responded by launching more models in this category that are competitively priced, stylish, and equipped with modern features, such as ABS, LED lighting, and digital consoles, making them even more attractive.

Electric two-wheelers are growing in South America due to increasing urban congestion, rising fuel costs, and supportive government policies promoting cleaner, cost-effective mobility solutions.

The growth of electric two-wheelers in South America is primarily driven by the region’s urgent need for sustainable urban mobility amid worsening traffic congestion, air pollution, and volatile fuel prices. Major cities such as São Paulo, Bogotá, and Santiago are experiencing high levels of vehicle density, making compact, zero-emission vehicles like electric scooters and motorcycles a more practical and eco-friendly choice for daily commuting. Additionally, rising fuel costs and economic pressures are prompting both individuals and businesses especially in the delivery and logistics sectors to shift toward electric models, which offer significantly lower operating and maintenance expenses.

Governments in countries like Brazil and Colombia are also playing a crucial role by introducing incentives, reducing import duties, and setting electrification targets to reduce their dependence on fossil fuels and improve air quality. Urban infrastructure improvements, such as the expansion of charging networks and the adoption of battery swapping technologies in some areas, are further enhancing the feasibility of owning and operating electric two-wheelers. Moreover, increased awareness of climate change and sustainability among younger consumers is shaping a cultural shift toward greener alternatives. Local startups and international brands are responding to this demand by offering affordable, feature-rich electric two-wheelers tailored to regional preferences.

Colombia is experiencing growth in the two-wheeler market due to its high urbanization, cost-sensitive population, and the increasing use of motorcycles for personal mobility and commercial delivery services.

Colombia’s two-wheeler market is growing rapidly as motorcycles have become an essential solution to the country’s urban transportation challenges and economic realities. In cities like Bogotá, Medellín, and Cali, dense traffic congestion, limited public transportation capacity, and sprawling urban layouts have made motorcycles a convenient, time-saving alternative for commuting. With a large segment of the population falling into low- to middle-income brackets, affordability is a key factor, and motorcycles offer a low-cost mode of transport with minimal maintenance and fuel expenses.

Beyond personal use, the rise of e-commerce, food delivery apps, and courier services has significantly boosted demand for motorcycles as efficient tools for commercial mobility. This trend has been further supported by flexible financing options, increased availability of low-displacement bikes (particularly < 150cc), and growing access to both new and used models. Additionally, Colombia’s relatively favorable regulatory environment and improving road infrastructure in semi-urban and rural areas are helping expand motorcycle adoption outside the major cities.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Two Wheelers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Motorcycle
• Scooters
• Electric Two-Wheeler
• Mopeds

By Engine Capacity

• < 150 CC
• 151 -400 CC
• 401- 800CC
• > 801 CC

By Price

• ICE
• Electric

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.