Published on 23/04/2013
Honda revs motorcycle demand AP Honda, the local distributor of Japanese motorcycles, expects overall domestic demand to reach 2.15-2.2 million units this year, increasing from 2.13 million last year. Sales director Suchart Arunsaengroj said the forecast is based on an economic growth forecast of 4.5-5.5%, indicating higher purchasing power among consumers. "The daily minimum wage of 300 baht nationwide is the key positive factor for the motorcycle market and helps to spur sales," he said. Total motorcycle sales in the first three months of this year were 549,067 units, representing 5.67% growth from 519,602 in the same period last year. AP Honda sold 403,403 motorcycles in the first quarter, a year-on-year increase of 13.55% from 355,258 units. Mr Suchart said the company aims to sell 1.58 million motorcycles this year, an increase of 6.04% from 1.49 million last year. "The ratio of motorcycle ownership in Thailand is three persons per unit, which is still lower than Taiwan where it is only two per unit," he said. "In the next 510 years, the local market will not be saturated." AP Honda plans to introduce 17 new models this year, though some will have only minor changes from existing models. Mr Suchart said the company aims to increase its market share to 73-74% by the end of 2013 from 68% last year. He said the big-bike market has been affected by the new excise tax structure for motorcycles that came into effect in January. Engine sizes of lower than 150cc are now taxed at 3%, with rates rising to 5% for 151-500cc, 10% for 500-1,000cc and 20% for higher than 1,000cc.
Mr Suchart said the new tax rates have pushed up the prices of big bikes and depressed overall sales by 10-20%. However, the segment still expects yearly sales to rise to 8,000 to 10,000 units from 5,000 last year. AP Honda expects its big-bike sales to reach 4,000 this year in line with six model launches and five new showrooms nationwide.