LivinLOS
Senior Member
- Joined
- Feb 10, 2011
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- Gas Gas 250 (Trials), YZ250 (enduro), DRZ440 (Supermoto) CBR900 Streetfighter (scary !!)
Nation :: Big Bike Sales Info..
- Thread starter LivinLOS
- Start date
KTMphil
Senior member
Japanese and European manufacturers want a slice of this rising demand
This could well be considered as the first year that competition in the motorcycle industry is intensifying since the start of the year.
Major manufacturers like Honda and Yamaha have announced their annual business plans and introduced many new products.
Honda, which owns more than half of the Thai motorcycle market, launched seven new models, the largest number at a single event since the company started business in Thailand. This includes Honda's "Global Models" that it also intends to export.
Meanwhile, Yamaha, the country's No 2 manufacturer, announced that it would introduce six new models this year.
But that's not the only development in the Thai motorcycle industry. The big-bike market is another segment that has been attracting more players as well as a larger number of buyers.
Honda, Yamaha, Suzuki and Kawasaki have established full plants here and are eyeing a larger market, while European brands like Triumph and Ducati that invested in Thailand last year, are ready to penetrate the market with their respective Asian models.
The Thai motorcycle market makes about 2 million units per year, and although in terms of volumes it may lag behind Indonesia or Vietnam, in terms of quality and strategy this is a market that holds hopes for the parent companies. This can be seen from the continuous plant expansion as well as the setting up of a large number of R&D centres recently.
However, the big-bike market is still very small in Thailand, and is dominated by grey importers.
Policy supports big bikes
The Thai big-bike market has experienced growth in the last 1-2 years due to changing consumer lifestyles, and the government's encouragement for manufacture of this type of motorcycles.
For the first time in history, the BoI (Board of Investment) had announced promotions for production of motorcycles with engine displacement of 500cc and over.
In mid-2007, the government led by General Surayud Chulanond was responsible for materialising the eco-car project, while Deputy PM Kosit Panpiemras visited the UK and Italy in late July that year.
Kosit said that British manufacturer Triumph, the world's seventh-largest motorcycle manufacturer, was interested in making a Bt3.5-billion investment in Thailand. The three-year project would include a parts factory as well as an assembly plant in Rayong province starting in 2008.
This led the Thai government to become interested in expanding big-bike production facilities in Thailand, after the country long ago established itself as a major compact-sized motorcycle manufacturer.
BoI secretary-general Sathit Charnchaowakul was appointed to devise an investment promotion plan for large motorcycles with engine sizes of 500cc and above. The global demand for big bikes is about 100,000 units per year.
In addition, the JTEPA (Japan Thailand Economic Partnership Agreement) will result in import duty being completely waived on big bikes from Japan in the near future. This is another important factor that will affect the business direction of the two major Japanese brands in Thailand, which already serve as an important motorcycle parts production base with lower cost. This has encouraged manufacturers to open up the market and use Thailand as a production base for big bikes as well.
Honda announced its plan to produce and export big bikes from Thailand, and plans to become the market leader in 2-3 years.
"From our research, grey importers sell a combined 400-500 units per month, and after we officially enter the market, it will grow dramatically. We plan to become the segment leader just like in the Thai total motorcycle market," said Chiaki Kato, president of AP Honda Co.
Atsushi Kimura, general manager, Business Planning Department of AP Honda, added that in the first quarter of this year, Honda will import seven big-bike models for sale in Thailand.
He said big bikes are targeted to represent 10 per cent of total Honda motorcycle sales in Thailand.
Initially, the motorcycles are to be fully imported, but Honda is also considering setting up production here. Kimura said Honda wanted Thailand to become the production and export hub for 700-1,000cc motorcycles to the global market.
"Honda has been planning to introduce big bikes for more than 10 years. We already see the demand and have been testing the market for over a year and a half. We must admit that in the past, growth of small 110-120cc motorcycles in Thailand has been very high. Presently, the big-bike market is about 10,000 units per year and Kawasaki is the market leader with 40-50 per cent market share. This is because Kawasaki produces 600cc motorcycles in Thailand and is able to sell them at much lower prices than imported models. Meanwhile, Honda has started production of the CBR 250 and PCX with 150cc and 250cc engines. These are small motorcycles from Honda that have been well received by customers," Kimura said.
Honda recently launched six new big-bike models at the Bangkok Motorbike Festival 2012, held at CentralWorld from February 1-5.
Kato said the Thai big-bike market has shown clear signs of growth and the six model launches are considered a warm-up for the official introduction of the Honda Big Wing.
"The Big Wing is the official Honda Big Bike showroom and service centre that will be officially opened in April," he said.
The six models that Honda launched are the Gold Wing (Bt1.2 million), CBR 1000RR (Bt799,000), NC700X (Bt451,000), Integra (Bt487,000); VFR 1200F (Bt899,000) and CRF 250R (Bt310,000).
Vichai Paitoonjitpipit, director of the Honda Big Wing, said Honda's decision to build the new facility and Honda Motor Co's announcement that it will use Thailand as the production centre for big bikes in the near future are proof that the market is growing.
"The Thai big-bike market should reach 10,000 units in 2012, up from 5,000-6,000 units per year a year or two ago. It is also believed that the use of Thailand as production hub will create a definite change in the big-bike market, and make it easier for consumers to ride and own them," he said.
According to Vichai, Honda chose Thailand as the production centre for big bikes because Thai suppliers are able to supply as much as 95 per cent of parts, which dramatically lowers the production cost when compared to manufacturing in Japan and then exporting them to Thailand. In that case, the motorcycles will have to undergo high import duty for many more years as the lifting of the import duty due to JTEPA is due in 2017.
He said that the Honda Big Wing will also be built in other provinces, particularly tourist attractions starting with Phuket, Pattaya and Chiang Mai.
Kawasaki starts to move
Charnnarong Nimboon, marketing manager of Kawasaki Motor Enterprise (Thailand), said Kawasaki plans to sell 5,000 big bikes this year in a market of about 10,000 units.
Kawasaki's assembly plant in Rayong presently produces 150,000 motorcycles, with 85 per cent being exported to the US, Europe, Japan and Asean markets.
"More than 10,000 big bikes are produced here - three 250cc models and three 650cc models. Models with engines larger than 650cc are imported from Japan," he said.
Charnnarong said the market for big bikes would grow by 15-20 per cent this year. He said Kawasaki has 10 big-bike showrooms and is targeting increased sales in 2012.
Yamaha waiting to pounce
Yamaha is also facing production cost issues back home in Japan, and there are reports that the parent company is studying possibilities and making a decision which country to use for manufacture of big bikes in the Asean region, apart from facilities in Japan and Europe. Among the countries with high potential are Thailand and Indonesia.
Jintana Udomsub, commercial manager at Thai Yamaha Motor Co, said using Thailand as a production centre for big bikes is in Yamaha's plan, but not for this year.
"We need time to study various issues such as the investment size and models to be assembled as we need to supply to both the domestic and export markets," she said.
Kasempong Sinthusophon, the company's sales planning manager, had previously said that Yamaha has been seriously penetrating the big-bike market during the last 3-4 years.
"We have about 500 customers and we presently offer five models from Japan. There are plans to import more new models as sales come to about 100 units per year," he said, adding that Yamaha has showrooms and service centres for big bikes in Bangkok, Chiang Mai, Nakhon Ratchasima and Pattaya,
Yamaha also plans to open a new branch this year, Kasempong said.
European models take off
Italian motorcycle manufacturer Ducati announced in early 2011 that it will invest Bt879 million in setting up a big-bike assembly plant in Thailand with a production capacity of 17,000 units per year.
Apichart Leenutaphong, managing director of Ducatisti Co, distributor of the Ducati brand in Thailand, said the "Asian Model" from Ducati, called the Monster 795, is assembled in Thailand and was launched recently.
The Monster 795 is powered by a 803cc engine capable of producing 87hp and has a price tag of just Bt399,990 (down from Bt658,000 for the previous M796 ABS model).
"We expect this model to become very popular with sales of over 100 units per year. Presently we have a waiting list for six months and Ducati is sorting out ways to raise production and deliver the motorcycles faster," he said, adding that local production has helped bring down the price by 30 per cent.
German manufacturer BMW is another brand that is active in the Thai market.
ML Kamolchart Pravitr, general manager of BMW Motorrad (Thailand), said the big-bike market is expected to grow further and BMW plans to introduce more new models, including the G600 Sport, G650GT and 1600GT.
BMW has a network of four showrooms and service centres, but is planning expansion.
BMW is also studying possibilities of building an assembly plant in Thailand, he said.
At the Bangkok Motorbike Festival, Triumph displayed a total of 15 models and said that it would launch a new model in March.
This could well be considered as the first year that competition in the motorcycle industry is intensifying since the start of the year.
Major manufacturers like Honda and Yamaha have announced their annual business plans and introduced many new products.
Honda, which owns more than half of the Thai motorcycle market, launched seven new models, the largest number at a single event since the company started business in Thailand. This includes Honda's "Global Models" that it also intends to export.
Meanwhile, Yamaha, the country's No 2 manufacturer, announced that it would introduce six new models this year.
But that's not the only development in the Thai motorcycle industry. The big-bike market is another segment that has been attracting more players as well as a larger number of buyers.
Honda, Yamaha, Suzuki and Kawasaki have established full plants here and are eyeing a larger market, while European brands like Triumph and Ducati that invested in Thailand last year, are ready to penetrate the market with their respective Asian models.
The Thai motorcycle market makes about 2 million units per year, and although in terms of volumes it may lag behind Indonesia or Vietnam, in terms of quality and strategy this is a market that holds hopes for the parent companies. This can be seen from the continuous plant expansion as well as the setting up of a large number of R&D centres recently.
However, the big-bike market is still very small in Thailand, and is dominated by grey importers.
Policy supports big bikes
The Thai big-bike market has experienced growth in the last 1-2 years due to changing consumer lifestyles, and the government's encouragement for manufacture of this type of motorcycles.
For the first time in history, the BoI (Board of Investment) had announced promotions for production of motorcycles with engine displacement of 500cc and over.
In mid-2007, the government led by General Surayud Chulanond was responsible for materialising the eco-car project, while Deputy PM Kosit Panpiemras visited the UK and Italy in late July that year.
Kosit said that British manufacturer Triumph, the world's seventh-largest motorcycle manufacturer, was interested in making a Bt3.5-billion investment in Thailand. The three-year project would include a parts factory as well as an assembly plant in Rayong province starting in 2008.
This led the Thai government to become interested in expanding big-bike production facilities in Thailand, after the country long ago established itself as a major compact-sized motorcycle manufacturer.
BoI secretary-general Sathit Charnchaowakul was appointed to devise an investment promotion plan for large motorcycles with engine sizes of 500cc and above. The global demand for big bikes is about 100,000 units per year.
In addition, the JTEPA (Japan Thailand Economic Partnership Agreement) will result in import duty being completely waived on big bikes from Japan in the near future. This is another important factor that will affect the business direction of the two major Japanese brands in Thailand, which already serve as an important motorcycle parts production base with lower cost. This has encouraged manufacturers to open up the market and use Thailand as a production base for big bikes as well.
Honda announced its plan to produce and export big bikes from Thailand, and plans to become the market leader in 2-3 years.
"From our research, grey importers sell a combined 400-500 units per month, and after we officially enter the market, it will grow dramatically. We plan to become the segment leader just like in the Thai total motorcycle market," said Chiaki Kato, president of AP Honda Co.
Atsushi Kimura, general manager, Business Planning Department of AP Honda, added that in the first quarter of this year, Honda will import seven big-bike models for sale in Thailand.
He said big bikes are targeted to represent 10 per cent of total Honda motorcycle sales in Thailand.
Initially, the motorcycles are to be fully imported, but Honda is also considering setting up production here. Kimura said Honda wanted Thailand to become the production and export hub for 700-1,000cc motorcycles to the global market.
"Honda has been planning to introduce big bikes for more than 10 years. We already see the demand and have been testing the market for over a year and a half. We must admit that in the past, growth of small 110-120cc motorcycles in Thailand has been very high. Presently, the big-bike market is about 10,000 units per year and Kawasaki is the market leader with 40-50 per cent market share. This is because Kawasaki produces 600cc motorcycles in Thailand and is able to sell them at much lower prices than imported models. Meanwhile, Honda has started production of the CBR 250 and PCX with 150cc and 250cc engines. These are small motorcycles from Honda that have been well received by customers," Kimura said.
Honda recently launched six new big-bike models at the Bangkok Motorbike Festival 2012, held at CentralWorld from February 1-5.
Kato said the Thai big-bike market has shown clear signs of growth and the six model launches are considered a warm-up for the official introduction of the Honda Big Wing.
"The Big Wing is the official Honda Big Bike showroom and service centre that will be officially opened in April," he said.
The six models that Honda launched are the Gold Wing (Bt1.2 million), CBR 1000RR (Bt799,000), NC700X (Bt451,000), Integra (Bt487,000); VFR 1200F (Bt899,000) and CRF 250R (Bt310,000).
Vichai Paitoonjitpipit, director of the Honda Big Wing, said Honda's decision to build the new facility and Honda Motor Co's announcement that it will use Thailand as the production centre for big bikes in the near future are proof that the market is growing.
"The Thai big-bike market should reach 10,000 units in 2012, up from 5,000-6,000 units per year a year or two ago. It is also believed that the use of Thailand as production hub will create a definite change in the big-bike market, and make it easier for consumers to ride and own them," he said.
According to Vichai, Honda chose Thailand as the production centre for big bikes because Thai suppliers are able to supply as much as 95 per cent of parts, which dramatically lowers the production cost when compared to manufacturing in Japan and then exporting them to Thailand. In that case, the motorcycles will have to undergo high import duty for many more years as the lifting of the import duty due to JTEPA is due in 2017.
He said that the Honda Big Wing will also be built in other provinces, particularly tourist attractions starting with Phuket, Pattaya and Chiang Mai.
Kawasaki starts to move
Charnnarong Nimboon, marketing manager of Kawasaki Motor Enterprise (Thailand), said Kawasaki plans to sell 5,000 big bikes this year in a market of about 10,000 units.
Kawasaki's assembly plant in Rayong presently produces 150,000 motorcycles, with 85 per cent being exported to the US, Europe, Japan and Asean markets.
"More than 10,000 big bikes are produced here - three 250cc models and three 650cc models. Models with engines larger than 650cc are imported from Japan," he said.
Charnnarong said the market for big bikes would grow by 15-20 per cent this year. He said Kawasaki has 10 big-bike showrooms and is targeting increased sales in 2012.
Yamaha waiting to pounce
Yamaha is also facing production cost issues back home in Japan, and there are reports that the parent company is studying possibilities and making a decision which country to use for manufacture of big bikes in the Asean region, apart from facilities in Japan and Europe. Among the countries with high potential are Thailand and Indonesia.
Jintana Udomsub, commercial manager at Thai Yamaha Motor Co, said using Thailand as a production centre for big bikes is in Yamaha's plan, but not for this year.
"We need time to study various issues such as the investment size and models to be assembled as we need to supply to both the domestic and export markets," she said.
Kasempong Sinthusophon, the company's sales planning manager, had previously said that Yamaha has been seriously penetrating the big-bike market during the last 3-4 years.
"We have about 500 customers and we presently offer five models from Japan. There are plans to import more new models as sales come to about 100 units per year," he said, adding that Yamaha has showrooms and service centres for big bikes in Bangkok, Chiang Mai, Nakhon Ratchasima and Pattaya,
Yamaha also plans to open a new branch this year, Kasempong said.
European models take off
Italian motorcycle manufacturer Ducati announced in early 2011 that it will invest Bt879 million in setting up a big-bike assembly plant in Thailand with a production capacity of 17,000 units per year.
Apichart Leenutaphong, managing director of Ducatisti Co, distributor of the Ducati brand in Thailand, said the "Asian Model" from Ducati, called the Monster 795, is assembled in Thailand and was launched recently.
The Monster 795 is powered by a 803cc engine capable of producing 87hp and has a price tag of just Bt399,990 (down from Bt658,000 for the previous M796 ABS model).
"We expect this model to become very popular with sales of over 100 units per year. Presently we have a waiting list for six months and Ducati is sorting out ways to raise production and deliver the motorcycles faster," he said, adding that local production has helped bring down the price by 30 per cent.
German manufacturer BMW is another brand that is active in the Thai market.
ML Kamolchart Pravitr, general manager of BMW Motorrad (Thailand), said the big-bike market is expected to grow further and BMW plans to introduce more new models, including the G600 Sport, G650GT and 1600GT.
BMW has a network of four showrooms and service centres, but is planning expansion.
BMW is also studying possibilities of building an assembly plant in Thailand, he said.
At the Bangkok Motorbike Festival, Triumph displayed a total of 15 models and said that it would launch a new model in March.
Harrythefinn
Senior Member
CRF 250R (Bt310,000). A bit steep.The Monster 795 is powered by a 803cc engine capable of producing 87hp and has a price tag of just Bt399,990. Nice.
Captain_Slash
Community Manager
- Joined
- Jun 28, 2011
- Bikes
- BMW 310GS Honda Wave 125 Honda MSX 125
Ones imported and ones made here Harry, thats the reason for the Hondas high price tag
Harrythefinn
Senior Member
Maybe I could just buy a decent set of knobbies for the Duke, a higher mudguard, work the suspension a bit. Dream on.
To my mind there is a lot more tech and expense in a 795 compared to a 250 dirt bike. I realise it is not the labour costs , not the technology , but the absurd taxation and customs duties. If BMW ,Mercedes, etc can bring in knock down kits for assembly in Thailand, why has it not been done with the bikes? But then maybe the volume of sales is not there.
To my mind there is a lot more tech and expense in a 795 compared to a 250 dirt bike. I realise it is not the labour costs , not the technology , but the absurd taxation and customs duties. If BMW ,Mercedes, etc can bring in knock down kits for assembly in Thailand, why has it not been done with the bikes? But then maybe the volume of sales is not there.
Mickey Magoo
Junior Member
Triumph has been in Thailand since 2002. I believe they've opened a 3rd factory there just last year. Key components are made there including frames and swingarms, wheels, plastics, fuel tanks, and lots more. I've been to the Triumph factory in the UK a couple times and have seen the crates opened with the Thai made parts. Beautiful.
Is there a forum here where I can get CURRENT information on small rental bikes in Thailand, Cambodia or Vietnam? Seems most here are X Pats riding big KTM's and stuff. You must be doing very well!
Is there a forum here where I can get CURRENT information on small rental bikes in Thailand, Cambodia or Vietnam? Seems most here are X Pats riding big KTM's and stuff. You must be doing very well!
Faz Harris
Member
- Joined
- Feb 14, 2012
- Bikes
- Kawasaki KLX 250H
Mickey Magoo said:
