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

Market Overview

Brazil Two Wheeler market was valued at USD 2.36 billion in 2024 and is anticipated to grow USD 2.91 billion by 2030 with a CAGR of 3.60% during the forecast period. The Brazil two-wheeler market is experiencing steady growth, fueled by urbanization, rising traffic congestion, and the demand for cost-effective personal mobility solutions. Motorcycles and scooters are increasingly favored for their fuel efficiency, affordability, and ease of navigation through crowded city streets. The expanding gig economy and e-commerce boom have also contributed to rising demand for two-wheelers in delivery and logistics services. Additionally, the younger population is showing growing interest in two-wheelers due to lifestyle preferences and lower ownership costs compared to cars. Motorcycle sales increased by 11.4% year-on-year in early 2025, with scooter sales rising 10%, while year-to-date sales reached 847.145 units by May up 10.9% highlighting strong consumer demand and driving market growth.

Key Market Drivers

Increasing Urban Congestion and Traffic Challenges

Urban congestion remains one of the key drivers of Brazil’s two-wheeler market, particularly in densely populated cities such as São Paulo, Rio de Janeiro, and Belo Horizonte. Rapid urbanization over recent decades has led to a surge in vehicle ownership, resulting in severe traffic bottlenecks that hinder daily commuting. Traditional four-wheeled vehicles are increasingly inefficient for urban travel, prompting commuters to seek more agile and time-saving alternatives.

In this context, motorcycles and scooters have emerged as practical mobility solutions. Their ability to weave through congested streets enables faster travel and greater flexibility, especially in areas with underdeveloped public transportation systems. This has made two-wheelers particularly appealing to urban commuters and delivery service providers. According to data from November 2023, the Traffic Congestion Index in São Paulo recorded a value of 30.08, slightly above the long-term average of 26.74 measured between January 2019 and November 2023. Despite daily fluctuations, such consistently high congestion levels underline the persistent challenges faced by urban commuters. With São Paulo alone witnessing daily traffic delays and vehicle growth adding to the pressure, motorcycles and scooters are increasingly viewed as essential tools for efficient urban mobility.

Affordability and Low Cost of Ownership

Another major factor driving growth in the Brazilian two-wheeler market is the affordability of motorcycles and scooters, both in terms of initial purchase price and ongoing maintenance. Compared to passenger cars, two-wheelers are significantly less expensive, making them a preferred option for middle- and lower-income consumers. This affordability has become especially important in recent years as Brazil has faced economic challenges, inflation, and rising interest rates, which have affected consumers’ purchasing power. Two-wheelers also consume less fuel, have lower insurance premiums, and require fewer repairs and less expensive parts. This cost-efficiency has made them highly attractive for individuals seeking budget-friendly transportation solutions. Additionally, financing options and low-interest loan schemes offered by manufacturers and banks have made it easier for first-time buyers to afford two-wheelers, further expanding the customer base in Brazil’s urban and rural areas alike.

Rising Interest in Electric Two-Wheelers and Environmental Concerns

Environmental sustainability is becoming a growing concern among both consumers and policymakers in Brazil. Air pollution, carbon emissions, and rising fuel prices have led to increased awareness of the environmental impact of traditional gasoline-powered vehicles. As a result, there is a growing interest in electric two-wheelers as a cleaner and more sustainable alternative. While Brazil's electric vehicle (EV) market is still in the early stages of development, government incentives, such as tax exemptions and subsidies for electric models, are beginning to emerge. Electric motorcycle sales in Brazil surged by 105% in Q1 2024 compared to the same period in 2023, reaching 3,452 units. This sharp rise is driven by growing environmental consciousness, worsening urban congestion, and the gradual expansion of charging infrastructure collectively fueling market growth.

Additionally, improvements in battery technology, reductions in battery costs, and increasing charging infrastructure are gradually making electric two-wheelers a more viable option for consumers. Many startups and established manufacturers are now introducing affordable electric scooters and motorcycles targeted at urban users. Though the penetration is currently low, the shift toward electrification is expected to play a significant role in shaping the long-term outlook of the Brazilian two-wheeler market.

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Key Market Challenges

Safety Concerns and High Accident Rates

One of the most pressing challenges confronting the two-wheeler market in Brazil is the high rate of road accidents involving motorcycles. Despite being an affordable and convenient transportation option, motorcycles expose riders to significantly higher risks compared to four-wheeled vehicles. According to data from Brazil's Ministry of Health and national traffic safety agencies, motorcyclists represent a large proportion of traffic fatalities in the country. The lack of adequate road infrastructure, poor driver education, and non-compliance with traffic laws further exacerbate this issue. Many motorcyclists, especially delivery drivers working under time pressure, engage in risky driving behaviors such as weaving through traffic or speeding. This not only endangers their lives but also creates a perception that motorcycles are unsafe, deterring some potential buyers. The government has made efforts to promote road safety through awareness campaigns and stricter helmet and licensing regulations. However, unless accident rates are significantly reduced, safety concerns will continue to pose a major challenge to market growth and consumer confidence.

Lack of Financing Options for Low-Income Consumers

Although motorcycles are more affordable than cars, a significant portion of Brazil’s population still struggles to access financing for vehicle purchases due to low credit scores or informal employment. Many potential buyers, especially in rural or underserved urban areas, rely on informal or cash-based income sources, which are often not recognized by formal financial institutions when assessing loan eligibility. Additionally, high interest rates and limited access to credit restrict the ability of these consumers to purchase even low-cost two-wheelers. As a result, demand in lower-income segments remains under-penetrated despite strong need. While some banks and manufacturers offer special financing schemes, the reach and accessibility of such programs remain limited. Furthermore, the country’s broader economic volatility and inflation also contribute to financial uncertainty, making lenders more cautious and reducing the availability of easy credit. Addressing this challenge will require coordinated efforts between the financial sector, manufacturers, and policymakers to create inclusive and flexible financing models tailored to the needs of Brazil’s informal and lower-income population.

Key Market Trends

Growing Adoption of Two-Wheelers for Delivery and Commercial Use

A significant trend reshaping the Brazilian two-wheeler market is the increasing use of motorcycles and scooters for commercial applications, particularly in the delivery and logistics sectors. With the rapid expansion of e-commerce, online food delivery, and on-demand services, companies are increasingly relying on motorcycles for last-mile delivery due to their affordability, fuel efficiency, and ability to navigate through traffic quickly. Platforms like iFood, Rappi, Uber Eats, and Mercado Livre have created a surge in demand for delivery riders or “motoboys,” who primarily use two-wheelers for their operations. This trend accelerated during the COVID-19 pandemic, as businesses pivoted to digital channels and consumers turned to online ordering. Even post-pandemic, the habit of ordering groceries, meals, and retail products online continues to grow, driving the need for fast, reliable delivery networks. Consequently, manufacturers are introducing commercial-grade models and offering fleet solutions tailored for delivery services, including features like extra storage and reinforced suspension systems. This ongoing trend is expected to sustain high demand for two-wheelers in urban centers.

Digitalization of Sales and Aftermarket Services

Digital transformation is revolutionizing Brazil’s two-wheeler industry. As per the study, over 86.6% of the population roughly 182 million people now access the internet as of January 2024. This connectivity boom enables consumers to research, compare, and purchase motorcycles and scooters online. Dealerships and OEMs are adapting by offering virtual showrooms, digital financing, and home delivery—especially appealing to younger, tech-savvy buyers. At the same time, digital platforms simplify after-sales services: riders can now schedule maintenance, order parts, and even request doorstep mobile servicing. These innovations enhance customer satisfaction, improve operational efficiency, and unlock new revenue streams. As broadband and mobile internet penetration continues to rise, this digital shift across sales and service is set to drive sustained growth in Brazil’s two-wheeler market.

Customization and Lifestyle-Oriented Offerings

Another emerging trend in Brazil's two-wheeler market is the increasing demand for personalized and lifestyle-oriented motorcycles. Beyond practical commuting and delivery use, many consumers—especially younger riders—are viewing motorcycles as lifestyle products that reflect their personality and social identity. As a result, there is growing interest in customizations, accessories, and retro or sporty design elements. From unique paint jobs and modified exhausts to advanced tech features like smart dashboards, anti-theft systems, and Bluetooth connectivity, consumers are seeking two-wheelers that stand out in both appearance and functionality. In response, manufacturers are launching style-focused models and offering customization packages to meet this evolving demand. Motorcycle clubs, social media influencers, and online communities are also contributing to the popularity of the customization culture. This trend is not only boosting premium and mid-range segment sales but also enhancing brand loyalty and consumer engagement. As motorcycles become more than just a means of transportation, this lifestyle-driven trend is expected to play a growing role in market development.

Segmental Insights

Vehicle Type Insights

Motorcycles represent the dominating segment in the Brazil two-wheeler market, primarily due to their versatility, affordability, and widespread use across both personal and commercial applications. Their superior speed, fuel efficiency, and capability to navigate congested urban roads make them the preferred choice for daily commuters and delivery service providers alike. Unlike scooters, motorcycles offer higher engine capacities and better performance for long-distance travel, appealing to a broader consumer base. Additionally, the availability of various models across multiple price ranges—from entry-level to premium—ensures accessibility for diverse income groups, reinforcing motorcycles' dominant position in Brazil’s growing two-wheeler industry.

Propulsion Insights

Internal Combustion Engine (ICE) two-wheelers dominated the Brazil market, driven by their affordability, widespread availability, and established fueling infrastructure. ICE motorcycles and scooters offer longer ranges, quicker refueling times, and lower upfront costs compared to electric alternatives, making them more practical for the majority of consumers. Additionally, the robust network of service centers and spare parts for ICE vehicles further strengthens their appeal. Despite growing interest in electric models, limitations in charging infrastructure and higher prices continue to hinder widespread EV adoption. As a result, ICE two-wheelers remain the preferred choice for both personal and commercial mobility in Brazil.

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Regional Insights

The North region was the dominating area in Brazil's two-wheeler market, driven by its geographic characteristics, limited public transportation infrastructure, and a higher reliance on affordable personal mobility. Many remote and rural communities in the North depend heavily on motorcycles for daily transportation due to underdeveloped road networks and the high cost of car ownership. Two-wheelers offer a practical solution for navigating challenging terrains and connecting to essential services. Additionally, the region's economic profile, which includes a large informal workforce, further supports motorcycle usage for both commuting and commercial purposes, solidifying the North’s leading position in the national market.

Recent Developments

• In April 2025, SBM has debuted in Brazil with six motorcycle models (250cc to 600cc) emphasizing bold design, advanced technology, performance, and competitive pricing. All models come with a three-year warranty, and 33 exclusive dealerships will open nationwide in the second half of 2025.

• In Jan 2025, BMW Motorrad is expanding its Brazilian production at its Manaus plant in early 2025 by adding six new models including the R 1300 GS Adventure bringing the local lineup to 13 motorcycles. Capacity is being increased by 10%, targeting 20,000 units annually

• In March 2024, Honda has launched the Sahara 300 in Brazil, replacing the XRE 300 with fresh adventure-focused styling, a 293-cc flex-fuel engine, digital console with USB‑C port, dual-channel ABS, preload-adjustable suspension, and three variants—Standard, Rally, and Adventure.

• In May 2024, Hero MotoCorp is establishing Hero MotoCorp do Brasil Ltd., a wholly owned subsidiary in Brazil to manufacture and distribute two-wheelers, parts, and accessories. Operations are expected to commence in Q4 FY2024 (January–March 2025), marking its first manufacturing footprint in Latin America.

Key Market Players

• Moto Honda da Amazônia, Ltda.
• Triumph Motorcycles Ltd.
• Harley Davidson Inc.
• Yamaha Motor do Brasil Ltda.
• Shineray Do Brasil SA
• Bajaj Auto Limited
• Dafra Motos
• Suzuki Motor Corp.
• Bayerische Motoren Werke AG
• Kawasaki Motors Corp.

Report Scope:

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

• Brazil Two Wheeler Market, By Vehicle Type:

o   Motorcycle

o   Scooter/Moped

• Brazil Two Wheeler Market, By Propulsion:

o   ICE

o   Electric

• Brazil Two Wheeler Market, By Region:

o   North Region

o   South Region

o   East Region

o   West Region

Competitive Landscape

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

Available Customizations:

Brazil Two Wheeler Market report with the given market data, TechSci Research offers customizations according to a 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).