Argentina Two-Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycle), By Propulsion Type (ICE, Electric), By Region, Competition, Opportunities & Forecast, 2020-2030F

Market Overview:

Argentina Two-Wheeler Market was valued at USD 2.13 Billion in 2024 and is expected to reach USD 2.57 Billion by 2030 with a CAGR of 3.2% during the forecast period. The Argentina two-wheeler market is experiencing notable growth, driven by several key factors. Rising disposable income among consumers has allowed for increased spending on personal vehicles, including motorcycles and scooters. As urbanization accelerates in major cities, the demand for affordable, fuel-efficient transportation solutions has risen. Two-wheelers, especially motorcycles, provide a practical and cost-effective option for navigating congested urban roads, offering quick mobility and lower fuel consumption compared to cars. Moreover, government initiatives to promote sustainable transportation solutions have created an environment conducive to the growth of the two-wheeler segment.

Market Drivers

Increasing Urbanization

As more people flock to cities in search of better economic opportunities and lifestyles, urbanization is a significant driver of the two-wheeler market. In densely populated areas, public transportation often struggles to meet the increasing demand. Two-wheelers, particularly motorcycles and scooters, offer an effective solution to the mobility challenges faced in these urban environments. They provide affordable, flexible, and time-efficient transportation options. This shift toward cities encourages consumers to seek more economical and space-efficient vehicles, with two-wheelers offering a practical solution for overcoming traffic congestion and limited parking availability. Additionally, as urban environments become increasingly congested, two-wheelers offer a way to bypass traffic jams and reduce commute times, further increasing their appeal to city dwellers. With many people living in smaller, more compact spaces, two-wheelers also require less parking space, making them a more viable option for those in urban settings. The overall growth of cities creates a ripe market for cost-effective, space-saving transportation options like motorcycles and scooters. Their ability to easily navigate through narrow streets and crowded areas continues to make them a top choice for urban commuters.

Rising Disposable Income

The growth of disposable income across various income groups plays a pivotal role in the demand for two-wheelers. As individuals and families experience improved financial conditions, their purchasing power increases, allowing them to invest in personal transportation. The affordability and lower operating costs of motorcycles and scooters make them an attractive option for consumers, especially when compared to higher-maintenance vehicles like cars. This trend is especially noticeable in markets where the middle class is expanding and consumer behavior is shifting towards more affordable and convenient mobility options. In particular, as people in developing economies achieve higher income levels, the demand for affordable and personal transportation solutions rises, with two-wheelers offering a lower entry cost compared to cars. Two-wheelers are often seen as a stepping stone to car ownership, providing a convenient way to travel while still being an affordable choice. The increased financial security of individuals translates to greater purchasing potential for two-wheeler brands, ultimately boosting sales. In urban areas, where cars may be too expensive or impractical, motorcycles and scooters become the preferred option for a growing number of individuals seeking private transportation. For instance, Argentina's motorcycle market saw a sharp 61.7% year-on-year increase in sales by March 2025, reaching 149,996 units, driven equally by motorcycles and scooters.

Government Incentives and Policy Support

Government policies encouraging the adoption of two-wheelers, especially electric models, are contributing to the market’s growth. Many countries have introduced subsidies, tax breaks, or lower registration fees for electric vehicles, which include motorcycles and scooters. These incentives help reduce the overall cost of ownership and make two-wheelers more accessible to a broader range of consumers. In addition, regulatory frameworks that promote sustainable mobility solutions, such as electric vehicle adoption, are further fueling market growth and encouraging manufacturers to invest in cleaner, more eco-friendly models. Governments also invest in infrastructure projects to support the growing two-wheeler market, such as creating dedicated lanes or charging stations for electric two-wheelers. Policies that provide financial benefits to both consumers and manufacturers make electric and fuel-efficient two-wheelers more attractive, encouraging their adoption across a larger demographic. Furthermore, governments are increasingly targeting the reduction of vehicle emissions, which directly influences the shift toward electric and energy-efficient two-wheelers. As governments align their policies with sustainability goals, this support will continue to be a key driver for market expansion.

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Key Market Challenges

High Initial Purchase Cost of Electric Two-Wheelers

While the adoption of electric two-wheelers is on the rise, the higher initial purchase cost remains a significant barrier to entry. Electric motorcycles and scooters generally come with a premium price tag compared to their gasoline-powered counterparts, making them less accessible to consumers with limited budgets. The affordability of electric vehicles needs to improve through manufacturing innovations or government-backed subsidies to make them more viable for a broader market, particularly in emerging economies where the cost factor is a crucial decision-making element. As the technology for electric vehicles continues to advance, the cost of components such as batteries may decrease, potentially bringing down the overall price. However, at present, the upfront cost of electric two-wheelers still remains a significant obstacle for a wide segment of consumers. 

Lack of Charging Infrastructure

The limited availability of charging stations is one of the main challenges hindering the widespread adoption of electric two-wheelers. Consumers are often concerned about the range of electric vehicles and the availability of reliable charging points. This issue is especially problematic in regions where the necessary infrastructure to support electric vehicles is underdeveloped or nonexistent. Expanding charging networks is crucial to easing these concerns and making electric two-wheelers more practical for everyday use, especially in urban environments where distances are relatively short but the need for convenience is high. In areas with limited charging options, the fear of running out of battery or not finding a charging station can discourage consumers from making the switch to electric two-wheelers. 

Key Market Trends

Shift Toward Electric Two-Wheelers

A prominent trend in the two-wheeler market is the rapid growth of electric motorcycles and scooters. As concerns about pollution and the environmental impact of traditional vehicles rise, consumers and governments are increasingly turning to electric mobility solutions. Technological advancements in battery life, coupled with favorable government incentives, have made electric two-wheelers more accessible and practical. The trend is expected to continue as both manufacturers and consumers seek more sustainable alternatives to gasoline-powered vehicles. This shift is revolutionizing the market, with manufacturers focusing heavily on electric vehicle innovation. Moreover, the development of more efficient charging infrastructure is expected to support this trend, making electric two-wheelers more viable for widespread use. As consumer awareness of the environmental impact of transportation increases, the demand for electric two-wheelers will likely continue to rise. The market for electric motorcycles and scooters is expanding globally, with consumers seeking cleaner, more affordable mobility options that reduce their carbon footprint. For instance, Although still a small segment, electric two-wheeler sales in Argentina rose by 66.1% in early 2025, surpassing 1,000 units and indicating growing consumer interest.

Integration of Advanced Safety Features

With the rise in two-wheeler accidents, the integration of advanced safety features has become an emerging trend. Manufacturers are incorporating technologies such as anti-lock braking systems (ABS), electronic stability control, and advanced driver assistance systems (ADAS) into their models. These technologies are designed to enhance rider safety by reducing the likelihood of accidents and providing better control under various riding conditions. As consumers become more safety-conscious, the demand for these high-tech features is expected to grow, making them a standard offering in the near future. The development of crash detection systems and smart helmets that communicate with the vehicle is further contributing to this trend, ensuring that safety is prioritized. As these features become more affordable, riders will be more inclined to invest in safer two-wheelers. With improved technology, the two-wheeler industry is prioritizing safety, leading to a safer riding experience for consumers.

Rising Popularity of Shared Mobility Solutions

The growing popularity of shared mobility services, such as motorcycle rentals and ride-sharing platforms, is reshaping the two-wheeler market. Consumers who do not wish to own a vehicle can now access motorcycles and scooters on-demand, offering a flexible and cost-effective solution to urban transportation. This trend is particularly notable in densely populated cities, where traffic congestion and parking issues make traditional vehicle ownership less practical. The success of shared mobility platforms has inspired further investment in this sector, providing new revenue streams and shaping the future of urban mobility. As companies such as bike-sharing and scooter-sharing platforms expand, more people will have access to affordable, convenient transportation without the burden of ownership. Additionally, shared mobility options provide a solution for last-mile connectivity, improving access to public transportation and reducing the overall number of vehicles on the road. With technological advancements in fleet management and GPS tracking, shared mobility is expected to grow significantly in the coming years.

Segmental Insights

Vehicle Type Insights

In 2024, motorcycles dominated the Argentine two-wheeler market, accounting for a significant share of sales. This is primarily due to the growing demand for motorcycles as a versatile and affordable mode of transportation, especially in urban areas. Motorcycles offer greater flexibility, enabling riders to navigate through congested traffic and reach their destinations more quickly, which makes them an ideal choice in densely populated cities. With the rising fuel prices and the need for cost-effective alternatives to cars, motorcycles have gained popularity as an efficient and affordable option for daily commuting.

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Region Insights

In 2024, Argentina's Pampas region led the two-wheeler market, driven by its dense population, urban activity, and demand for affordable transport. Cities in the region saw rising use of motorcycles and scooters among workers, students, and small businesses due to traffic congestion and limited parking. Well-maintained roads, flat terrain, and interconnected routes made two-wheeler commuting efficient and cost-effective. Economic pressures and growing delivery services further boosted two-wheeler adoption, making them essential for daily commuting and professional use across the region. For instance, broader economic recovery is being expected in the country, characterized by declining inflation which is projected to fall below 30% in 2025 from 211% in 2023 and an anticipated GDP growth exceeding 4%, driven by sectors like energy, mining, and agriculture. 

Recent Developments

• In 2024, Indian two-wheeler OEMs are aggressively expanding in Brazil. Royal Enfield opened an assembly plant in 2022, while Bajaj Auto launched a Manaus facility in 2024 with an initial capacity of 20,000 units, expandable to 50,000. Bajaj also introduced ethanol-compatible models like the Dominar E27.5 and Pulsar NS160 Flex. Hero MotoCorp is preparing to start local assembly soon.
• Bajaj Auto plans to export its Chetak 35-Series electric scooters to a dozen international markets within six months. With a 45% drop in material costs, the updated model weighs 129 kg and features a 3.5 kWh battery. Bajaj currently produces 40,000 units monthly, aiming to scale to 60,000.
• Ducati will begin local motorcycle assembly in Argentina via a partnership with Volkswagen Group Argentina, using CKD kits. This strategy aims to boost Ducati's Latin American market share by leveraging existing infrastructure for regional growth.
• In 2025, Domestic manufacturers outpaced the overall market, with Keller leading at 106.6% growth, followed by Gilera (84.8%), Motomel (80.1%), Zanella (70.7%), and Corven (48.3%).

Key Market Players

• Motomel S.A.
• Honda Motor de Argentina S.A.
• Yamaha Motor Argentina S.A.
• Zanella Hnos. S.A.
• Bajaj Auto Argentina S.A.
• Suzuki Motor De Argentina S.A.
• Guerrero S.A.
• Corven Motors Argentina S.A.
• Gilera Motors Argentina SA
• Kawasaki Heavy Industries Ltd

Report Scope:

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

·         Argentina Two-Wheeler Market, By Vehicle Type:

o    Scooter/Moped

o    Motorcycle

·         Argentina Two-Wheeler Market, By Propulsion Type:

o    ICE

o    Electric

·         Argentina Two-Wheeler Market, By Region:

o    Cuyo

o    Northwest

o    Pampas

o    Patagonia

o    Rest of Argentina

Competitive Landscape

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

Available Customizations:

Argentina Two-Wheeler Market report with the given market data, TechSci 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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