PUBLISHED: 24 Jul 2024 at 06:17
Motorcycle sales in Thailand have experienced a significant downturn, falling by 10% year-on-year in the first half of 2024. This decline has been mirrored by Thai Honda Co, a leading motorcycle manufacturer in the region, which has reported decreased sales amid challenging market conditions.
Economic growth has stagnated at just 1.5% during the first quarter, compounded by stringent auto loan criteria from banks and struggles in the export sector, according to industry experts.
High household debt, currently at 91% of GDP, coupled with weak consumer purchasing power, has caused consumers to exercise caution in their spending decisions, as highlighted by companies in the sector.
Thai Honda reported a 7% decrease in sales, totaling 800,000 units from January through June. The company anticipates that the economic landscape will remain largely unchanged, leading to continued sluggishness in the motorcycle segment.
For 2024, Thai Honda projects local motorcycle sales to be between 1.65 to 1.70 million units, while its own sales forecasts estimate around 1.36 to 1.40 million units.
Currently, Honda motorcycles are particularly favored in the family segment, achieving a commanding market share of 45%, while automatic motorcycles hold a market share of 51-55%.
Additionally, Thai Honda acknowledges the rising competition from Chinese electric motorcycle manufacturers, prompting the need for adaptation among traditional motorcycle producers.
In the electric motorcycle segment, Thai Honda expects sales to rise to 30,000 units in 2024, up from 21,000 units in 2023. So far this year, the company has sold 13,600 electric motorcycles.
Plans to expand battery swapping stations to support electric motorcycles are currently underway, with a total of 44 stations targeted. Furthermore, in the electric motorcycle rental business, the company aims to increase its fleet from 600 to 800 units.
