Motorcycle industry revs up for faster growth this year

MANILA, Philippines - The Philippine motorcycle industry is targeting to grow as much as 15 percent this year as it expects to overtake Thailand’s annual sales volume.

Motorcycle Development Program Participants Association (MDPPA) officials said yesterday industry sales are forecast to accelerate 12 percent to 15 percent to 1.8 million to 1.9 million units by year-end.

This would put the country ahead of Thailand in terms of sales volume, MDPPA president Armando Reyes said.

“Motorcycles sales of Thailand were at 1.7 million units last year. Their growth has been stagnant already,” he said.

Reyes said among the factors that would drive the industry’s growth this year include the country’s improving economy, availability of more financing options and affordable down-payments.

MDPPA members, which include Honda Philippines Inc., Kawasaki Motors (Phils.) Corp., Suzuki Philippines Inc., Yamaha Motor Philippines Inc. and Kymco Philippines Inc., account for 70 percent of total industry sales.

Last year, MDPPA breached the one-million sales mark for the first time as it capped off 2016 with a 34-percent year-on-year growth.

Moped motorcycles accounted for 37 percent of the group’s total sales last year, while business motorcycles made up 32 percent.

Driving the industry’s growth in 2016 were increase in private consumption, prevalent use of mopeds for personal purposes, introduction of new models, higher foreign exchange rates and remittances, and traffic congestion in metropolitan areas.

“MDPPA’s 2016 performance has definitely set the momentum for hitting an even higher sales mark this year. MDPPA expects motorcycle sales to accelerate along with the increasing demand for mobility especially in major cities,” the group said.