Increasing PH motorbike sales keep manufacturers riding high

The big guns of Ayala’s Integrated Micro-Electronics Inc. at the launch of KTM Philippines. From left, Ayala Automotive President and CEO JP Orbeta, Integrated Micro Electronics Inc. President Arthur Tan, Ayala Corporation CEO Jaime Augusto Zobel de Ayala, KTM Philippines COO Dino Santos, Ayala Corporation President and Chief Operating Officer Fernando Zobel de Ayala

Behind sustained strong appetite of Filipinos for two-wheeled motorbikes, the Motorcycle Development Program Participants Association (MDPPA), the country’s biggest group of motorcycle manufacturers, believed the Philippines could attain a 2.5-million-unit sales by 2020, a number that should surpass Thailand’s.

Currently, Indonesia tops the region in terms of motorcycle sales with 6.48 million units sold in 2015, although this is already a 15.2 percent drop from 2014.

Thailand comes in second with 1.64 million units sold last year even if this figure is already a 3.7 percent decline from 2014.

On the other hand, the MDPPA reported that in 2015, its members were able to sell 850,509 units, which is a 7.6 percent growth.

Comprising the country’s top five brands—Honda Philippines, Kawasaki Motors Philippines, Yamaha Motor Philippines, Suzuki Philippines, and Kymco Philippines—MDPPA members account for 70 percent of the country’s total motorbike sales.

MDPPA said the country has plenty of room for growth given that the motorbike ratio in the Philippines is still at 20:1 compared to 4:1 in some countries in the region.

MDPPA noted that the introduction of affordable but reliable motorbike models propelled the sales performance of its members.

It added that the traffic congestion in major cities, like Metro Manila, also prompts commuters to look for alternative modes of transportation.

Indeed, motorbike sales is doing well these days that market leader Honda Philippines celebrated another milestone: rolling out its five-millionth Honda motorbike manufactured in the country.

The five-millionth unit is a Special Edition Red XRM 125, which incidentally is the company’s most popular model in the Philippines since its first release in 2002. The model has now a cumulative sales of over 1.4 million units.

HPI started production of motorbikes in 1973, and reached its one-millionth production on Feb. 10, 2005 at its factory in Parañaque City. In April 2006, HPI transferred its production site to a new factory in Tanauan City, Batangas, to increase its production capacity.

Reliving the past

Even those who could buy four-wheeled rides now try their hands on bigger displacement motorbikes—but not just any big bike.

Connoisseurs are finding retro-looking ones most fascinating. For example, the Kawasaki W800, a vintage-styled cruiser, is inspired by the Kawasaki W1 that dates back to 1966.

The W800 is an attention seeker with the spoke wheels, ribbed seat, dual tone paint scheme, and abundance of chrome. This 773cc parallel-twin cylinder-powered ride will be initially priced at P447,000. (Wheeltek Motor Sales Corp. is already accepting orders.)

Another retro-looking ride that recently made waves is Ducati’s new Scrambler.

Launch of Honda CBR150R

Inspired by the vintage styling of café racers and youth culture from the ’60s and ’70s, the 800-cc Scrambler, especially the ’62 Yellow Icon, is an excellent ride for someone wanting to own a big and powerful Italian work of art.

Investment

Even makers of high performance motorbike firms are taking interest in the country: Austria-based KTM, represented locally by the Ayala companies-owned Adventure Cycle Philippines, intends to open 45 showrooms in different parts of the country and a manufacturing plant at Ayala’s Integrated Micro-Electronics Inc. by the first half of 2017.

KTM Philippines is looking at selling 3,000 to 5,000 units annually in the Philippines, with the same number exported to China, Thailand, Vietnam and Cambodia.

Once fully operational, KTM Philippines says that its plant will be able to produce at least 20,000 units, initially of the street-naked models Duke 200 and Duke 390, and the street sport bike models RC 200 and RC 390.

MDPPA noted that the flourishing sales figures of the country’s motorcycle industry are a clear indication of how the Philippines’ improving economy contributes to the group’s performance.

The organization added that the future of the country’s motorcycle industry will continue to grow, much better than its other Asean counterparts.