Motorcycle industry keeps positive outlook amid smuggling woes

Despite the automotive industry’s strong cry against issues regarding rampant vehicle smuggling in the country, the motorcycle industry remains positive with the market as huge growth potential are eyed in years to come.

According to last year’s motorcycle market inventory report, the industry was able to reach unit sales of about 675,000 motorcycles leading to another increase in its yearly sales. However this rate is still considerably lower compared to the performance of the rest of our ASEAN neighbors, said Yamaha Motor Philippines, Inc. director for sales and marketing Yano Takeshi in an interview.

“The growth of demand here in the Philippines is going well but still this growth is lower compared to other ASEAN countries Indonesia, Vietnam, and Thailand. But the Philippines has big potential in the future specially that most people here doesn’t have motorcycles,” said Takeshi.

Last year, Indonesia generated about 5 million unit sales while Vietnam had 2 million and Thailand reached 1.6 million.

In terms of motorcycle ratio, motorcycle-user ratio, here in the country there is only one motorcycle per every 40 people whereas in other ASEAN countries particularly in Indonesia there is a 13 is to one motorcycle ratio and Thailand has three is to one ratio.

Despite the rampant motorcycle smuggling here in the country, the industry according to Takeshi is not very much affected especially that the smuggled unit is oftentimes a lot more expensive than their legitimate ones.

“Compared to the automotive industry, the case on smuggling in our playing filed is very minimal and all manufacturers here are also geared towards preventing further escalation of these illegal activities,” said Takeshi.

Seeing so much growth potential for the industry here in the country, Yamaha is optimistic to grow their market share and capture 30% of the market in three to five years time since as of the moment they are still lagging behind capturing only six percent of the market.

 “Yamaha is doing quite well in the ASEAN market and we want to follow that here in the Philippines because right now we are not yet the market leaders so we are intensifying our operations here with our new plant in Batangas to develop stronger market presence and brand awareness,” said Takeshi.

Yamaha has just recently soft operated their P550 million assembly plant after establishing their 100% subsidiary Yamaha Motor Philippines last May. Takeshi projected to be able to reach production and sales volume of about 70, 000 units this year once the plant is fully operational.

“Yamaha has been here for a long time and is not a new brand but we need to further establish ourselves here and intensify our brand image,” stressed Takeshi.

This year, they are targeting to launch their 3s Yamaha shops that will cater complete services from sales, service and spare parts to change the standard of the industry. They are looking at opening 300 3s shops nationwide in four years time and they will be starting next month in Bacolod.

The company’s first major event under their “brand new” Yamaha Motor Philippines (YMPH) dubbed as the “Yamaha Evolution 2008: Feel the Excitement” was recently staged in SM City Cebu Northwing. Its last leg will be held in Davao City this April. — Rhia de Pablo