Kymco. Hard start of the year, with global sales sharply down YTD April 2020

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Kymco Motorcycles global sales performance are declining fast in the 2020, following the almost positive previous year. To the sales lost in Europe and Latam, related to Covi19 crisis, Kymco is adding the lost of market share in the domestic market.

Kymco Global Sales in 2020

Kymco is suffering in this 2020 more than the most of competitors due to the difficulties found in the domestic market.

Taiwan has been the best in the World in managing the Covid19 risks and few cases have been detected in the country not requiring any block to the standard economic activity within the country. The motorcycles industry kept the positive track but KYMCO is losing sharply, reportng a 21% decline year to date April, under the attack of Gogoro and the aggressive commercial strategy put in place by the arch-rival SYM.

Bad news from Europe and Latam as well.

In Europe sales declined 31% YTD April, hit in Italy, France, Spain and Austria. In Latam sales declined 21.4%, hit in Chile, Colombia, Costa Rica, Brazil.

2019 ended at the second sales level ever

Following the 12% decline reported in the previous year, in the 2019 Kymco global performance was almost positive, ending the year with 565.000 units (+10%) and scoring the second highest sales level ever.

The growth was based on the +10.7% reported in the domestic Taiwanese market, but was almost positive in the ASEAN region (+10.4%) and in LATAM (+9%). In Europe sales improved marginally (+1.9%) disappointing the Management, after that the 2018 level had been the worst in the decade.

New facilities in the Philippines

In a press briefing in Makati City on early April, KYMCO Philippines president Allan Santiago announced the company decision to invest nearly 20 million US dollar in a new facility in the Philippines. The operations are supposed to start in the 2023, when the forecast indicates that the demand for a new type of two-wheeler models (mainly electric fuelled) will be huge.

Indeed, the Philippines are among the fastest growing markets all over the World and new rules to limit pollution will dramatically transform the industry. The new Kymco plant will have a capacity of 6,000 units per month. It will  replace the current facility, located at the Sta. Maria Industrial Estate in Bagumbayan, Taguig City which has a capacity of 5,000 units per month and “old” technologies.

 

Brand Heritage

KYMCO stands for Kwang Yang Motor Company, headquartered in Kaohsiung, Taiwan. It has about 3.000 employees and produce more than 600,000 vehicles per year.

The company has established several production facilities abroad. Those are located in Indonesia (Jakarta), Malaysia (Petaling Java), China (Shanghai, Chengdu and Changsha) and Philippines (Bagumbayan, Taguig City). 

Founded in 1964, KYMCO originally started out with technology transfer from Honda, Japan. Thanks to the technical know-how from Honda, KYMCO became one of Honda’s high quality overseas manufacturing facilities.

Over the next two decades, Honda increased its business interest in Kymco, becoming one of its significant shareholder. However, their strong relationship ended in the 2000, when Kymco started to move on its own feet.

Kymco celebrated its 50-year anniversary in 2014 hitting the milestone of 10 million scooters, motorcycles, e-bikes, side-by-sides and ATVs sold in 100 countries, with an annual sales revenue exceeding (US)$ 1 billion.

Kymco
Kymco 14_SUPERNEX

Investment in India

In order to enter the Indian market, Kymco has formed a partnership with a local start-up in the electric scooter segment, Twenty Two Motors. Kymco invested $65 million acquiring stakes for over 25%, also he supported the technological development of a new plant, a product portfolio and the localization of batteries over the next three years. 

Twenty Two Motors, co-founded by Parveen Kharb and Vijay Chandrawat, will continue to own a majority stake in the company.  They started up in 2016 with the aim to offer affordable electric two wheelers. Thanks to this partnership they will work on premium scooters, which are yet accessible.

Allen Ko, Chairman of Kymco is non-committal on the stake position to ET, but adds Twenty Two Motors the company has found a right partner who shares the same vision.

To kick-start the retail venture, both the partners have decided to open experience stores by Twenty Two KYMCO in the major cities of New Delhi Gurgaon, Jaipur, Hyderabad, Pune and Bangalore soon afterwards.

The first scooter from the partnership is likely to come up in October 2019. With this partnership, i-FLOW – the smart electric scooter by Twenty Two Motors will be equipped with the advanced Ionex technology developed by Kymco. The partnership also aims to set up the entire ecosystem in place to address the range anxiety and charging infrastructure issues with its Ionex platform.

To received Kymco sales figures, by year/market/model, please contact us.% YTD April,