Kymco Motorcycles global sales are fast recovering and following a 20.5% lost in the first half, the current lost is reduced to 13.5%, projecting the entire year at 458.000 units (-7.3%). European operations are sustaining the performance.
McD tracks new vehicles registrations across the World (over 80 countries), reporting data on calendar year. When you wish to compare data reported by us to those declared by the manufacturers, consider they usually report their “sales” (vehicles invoiced), which are usually different from “registrations”, accordingly with their fiscal year split.
Kymco Global Sales in 2020
Thanks to the favorable country-mix, global sales in 2020 for Kymco are better than for many competitors.
Considering that the most of sales are concentrated among the domestic country – Taiwan – China and Europe the manufacturer looks able to well balanced the crisis created by covid 19 spread in the World.
Following a first quarter 21.4% sales decline, caused for the most by lost in Taiwan and in the Latam region, in the second quarter Kymco was resilient to the crisis losing 20.9%, mainly for the collapse of European activities and again, for bad score in Latam.
However, the strong recovery in place in Europe is driving up the recovery and after the first eight months of the year, global sales have been over 300.000, down 13.5%.
The positive trend will allow a further recovery in the remaining part of the year with 2020 expected at 458.000 sales, down a mere 7.3%.
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.
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.
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.