Thailand Motorcycles Market reported a little growth in the first quarter 2021, following the double-digit lost in the previous year. Sales at 436.890 were up 1.4%. Deep lost have been reported for BMW, Royal Enfield, Kawasaki, Peugeot and Ducati.
Motorcycles Market Trend 2021
The Thai motorcycles market is slowly recovering after the double-digit lost reported last year, as the economic indicators are growing at a slow pace. However a more robust speed is expected starting from the Q2.
Meantime, in the first quarter 2021 sales have been 436.890 (+1.4% vs the 2020 and -2.8% vs the 2019), in line with our expectations.
Market leader is again Honda with 344.322 sales (+1.4%) followed by Yamaha with 64.765 (+3.1%) and Piaggio with 8.271 (+9.1%).
Outstanding performance for the local manufacturer GPX, up 87.2%, while deep lost have been reported for BMW, Royal Enfield, Kawasaki, Peugeot and Ducati.
In 2020 the two-wheeler market lost 9.7%
The two-wheeler is the primary individual mobility industry in Thailand and one of the largest domestic manufacturing industry, considering the localization of several plants, based in the country to feed all ASEAN demand.
This market is the 6th largest world-wide albeit having lost volume in the 2020, when sales declined 9.7%.
The pandemic impact was lower than for other top countries with sales declined only 15.8% in the first half of the year, while the recovery was shy and following a Q3 up a mere 1.1%, in the Q4 sales declined again 5%, ending the year with 1.5 million sales (-9.7%) and with a short term outlook negative.
The category under more pressure is the motorbikes (-31%) while underbone/scooter segments were more resilient. In general the entry level of each category suffered less than the others.
Electric vehicles reported a massive growth (+93,2%), pushed up by government actions toward the development of a regional hub for this kind of vehicles and by the launch of several new models offered by local and Chinese brands.
Looking at the competitive landscape, as usual the market is dominated by Honda which in the 2020 sold 1.18 million two-wheeler (-9.7%) with not real competition from other traditional manufacturers.
The second player, Yamaha stands far behind with only 239.531 sales (-10.9%). In third place Piaggio with 28.105 units (+18.9%), followed by the local manufacturer GPX with 14.457 (-25.8%), Kawasaki with 12.155 (-13.4%) and Suzuki with 11.996 (-44.7%).
Global Production Hub
Thailand is a major motorcycle manufacturing base ranking in 5th place as regard to the production capacity (2 million), after China (23 million units), India (20 million), Indonesia (8 million) and Vietnam (3 million).
Thailand started the 1st motorcycle manufacturing in 1967 under the CKD system.
At the beginning decade of 1990, Thailand promoted the investment of four-stroke engine motorcycle instead of the two-stroke one to reduce emission problem and the production boosted reaching a capacity of 1.75 million annual units. The sales of motorcycles followed the development of the country representing the first device of personal mobility.
In the following years, while introducing Free Trade Agreements (FTA) which caused the cancellation of industrial protection measure, the industry started to export and to evolve in line with the global demand, learning new technologies and adopting state of the art rules for safety and emissions.
Nowadays, there are 7 motorcycle manufacturers in Thailand with total capacity of production at 3 million units per year. They are Honda, Yamaha, Suzuki, Kawasaki, BMW, Triumph and Ducati. Most of them are located in the Central and East regions because they are clusters of manufacturer as well as near to the seaport for export those CBUs.