Motorcycle sales dip 10% in H1

Motorcycle sales fell by 10% year-on-year during the first half, with Thai Honda Co, a major motorcycle manufacturer and distributor, also experiencing a sales drop in the sluggish market.

The unfavourable circumstances resulted from slow economic growth of 1.5% in the first quarter, banks’ stricter criteria in granting auto loans and an unhealthy export sector, said Yuichi Shimizu, president of Thai Honda.

“High household debt that stands at 91% of GDP and weak consumer purchasing power caused people to be more cautious about spending. They are worried about the current economic situation,” he said.

Thai Honda saw its sales decrease by 7% year-on-year to 800,000 units between January and June.

Thai Honda believes the economy in the second half of this year will not improve significantly, causing the automotive industry, including motorcycle sales, to remain sluggish.

The firm expects local motorcycle sales in 2024 to stand at around 1.65 to 1.70 million units.

As for Thai Honda, the company expects its sales to be around 1.36 to 1.40 million units.

At present, Honda motorcycles in the family segment are still popular among Thai buyers, with a market share of 45%, while motorcycles in the AT segment command a market share of 51-55%.

Mr Shimizu, second from right, at Thai Honda’s press conference on the motorycle business.

Thai Honda said Chinese electric motorcycle makers pose a challenge to other motorcycle manufacturers, especially those who are familiar with internal combustion engine technology, as they need to adapt themselves to tougher competition in the market.

Thai Honda’s electric motorcycle sales are expected to stand at 30,000 units in 2024, up from 21,000 units in 2023. During the first half of this year, Thai Honda sold 13,600 electric motorcycles.

“The company plans to increase battery swapping stations to serve electric motorcycles. We are conducting a feasibility study on this plan,” Mr Shimizu said.

Thai Honda plans to have a total of 44 battery swapping stations. In the electric motorcycle rental business, it wants to increase the number of motorcycles to 800 units, up from 600 units at present.