Motorcycle sales in Philippines post impressive 42% growth in first half
Motorcycle sales in the Philippines rose a staggering 42% during the first six months of the year, from 382,365 units during the first half of 2015 to 544,699 units. The country reported a 7% GDP growth rate in the second quarter and is expected to be on track to reach the 6-7% growth target for 2016, as the first semester average stood at 6.9%.
“Among the major Asian emerging economies, the Philippines likely remains the fastest, or second-fastest-growing, economy in the second quarter of 2016, followed by China, which grew by 6.7%, Vietnam by 5.6%, Indonesia by 5.2%, Malaysia by 4.0% and Thailand by 3.5%,” said Philippine Socioeconomic Planning Secretary Ernesto M. Pernia.
“The introduction of affordable, but reliable, motorcycle models propelled the sales performance of MDPPA member manufacturers. The traffic congestion in major cities, such as Metro Manila, also prompts commuters to look for alternative modes of transportation. Commuters consider motorcycles as a fast and affordable transportation alternative,” said Rodel I. Pablo, president of the Motorcycle Development Program Participants Association (MDPPA).
MDPPA is composed of five Japanese motorcycle brands – Honda, Kawasaki, Suzuki, Yamaha and Kymco (a multi-brand distributor).
“That gap in the alternative mode of faster transportation is filled up by motorcycles, which is the fastest and the
most economical,” he added.
The growth in motorcycle sales for personal use outstripped the growth in motorcycle sales for business use, with the former accounting for more than 60% of the total share of sales, compared to 23% for business use.
The growth in the first semester was also driven by election spending, but Pablo noted that strong growth continued in July, post elections.
“This year is really special because during the past election, growth in motorcycle sales was only at 20%. This means the market is still very vibrant,” he said.
MDPPA members, which produce 95% of its motorcycles in the country, account for 70% of total motorcycle sales in the Philippines, while the remaining 30% are Chinese brands.
With such an impressive growth during the first half of the year, the group is targeting to reach a milestone of more than 1 million units by December. MDPPA sold a total of 850,509 units in 2015.
“We expect a very rosy year for the industry,” Pablo said.
On average, MDPPA members have posted an average of 6.7% growth from 2012 to 2015.