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Market Research Report

Philippines Two Wheeler Market Outlook 2019-2035: Growth Opportunities | Trends | Share-Sales | COVID-19 Impact Analysis

Published Date :

2021-03-01

Report Pages :

426

Format :

PDF

Region Covered :

Philippines

Philippines Two Wheeler Market Overview

Philippines two wheeler market was positive in the first 10 months of 2109 although it had a slow start sales improved by 9.8%, 1.7 million units despite the introduction of new emission standards. Honda emerged as the market leader, KTM and BMW were fast growing. Total Units manufactured  in Philippines of two wheeler are 79,763.

Economic Environment

The Philippines economy experienced a rebound in the third quarter, fiscal stimulus and strong consumer dynamics kept the momentum strong in the fourth quarter. Buying power of people increased in October rose further in September. After the gridlocking in H1 in the budget the government was catching up on its 2019 spending plan. Credit of consumer rose greatly in October and so did the business loans all this was the result of Central Banks monetary policy. In the same fashion remittances also rose at the solid rate on October and remained strong till the years end because of inflows before the holiday season. Thus private consumption in Q4 remained positive. The outlook for 2020 is positive as spending on infrastructure by the government will lead to more investment and construction activity. The tight labour market, sustained remittances and looser credit conditions will strengthen consumer spending for the dark cloud of rift between long standing US – China trade darkness the outlook. Philippines stands at the 7th place. It had 35% at 1.59 million units in 2018 and 2019 domestic sales were projected over 1.7 million Motorcycles Market Environment. Philippines market in not saturated as compared to other Southeast Asian markets, thus there is scope for further investment opportunities and motorcycles are seen as effective and cost effective by the middle class for personal and business needs sales potential is promising such easy credit. Motorcycles can be purchased at reasonable prices by consumers and investors specializing in semi-knocked down units. Technical licencing agreements with foreign brands have been established to localization of inputs and technology transfer.

In reality, Honda Kawasaki, Suzuki Yamaha and Taiwanese - Kymco have production base for domestic sales while Chinese and Indian brands are eying the markets with growing interest in KTM is producing in the Lagma plant since 2017 and production of 7000 units 60% were manufactured for export in 2018. Government has also introduced development plans. Eg. Comprehensive Motor Vehicle development programme to promote investments transfer of technology and industrial upgrading. With the assistance of BOI already 28 local and foreign companies have availed the incentives of the programme along with this Philippines Economy Zone Authority (PEZA) also gives fiscal and non-fiscal incentives like duty exemptions and tax holidays from 4 to 8 years.

The government is also making serve that Euro 3 Complaint Products, along with two wheeler emission is followed by local motorcycle manufactures, assemblers and importers. COC (Certificate of Conformity) has to be obtained from the DENR to enable one to get a certificate of stock report (CSR) form Land Transportation Office (LTO) have to be obtained prior to registration  of a motorcycle unit by manufacturers/importers. This policy will benefit the population in terms of upgraded in fuel systems and catalytic converters although there will be an increase in production cost of motorcyles.

Market Trend/Geographical (Dominate Market, Target Opportunities)

  • The volume of production doubled from 2012-2018 in Philippines new motorcycles, mopeds and three wheeler vehicle. It elevated to the 7th position in the Global ranking leaving behind Brazil, Taiwan and Thailand. A new record sale of 1.59 million units was established in 2018 in sales grew by 35% despite introduction of new Euro 3 emission standard in September. Although in 2019 the start was slow but sales gradually increased in the first 10 months on the year reaching to 1.5 million (+9.8%) in the whole year sales were over 1.7 million. Philippines is gaining attraction for several markets due to healthy sustainable economic growth, along with strong consumer purchasing power/difference industries. Like construction industry automatic industry manufacturing industry, real estate industry, electrical machinery, transport equipment and business process management industry, banking industry are expected to grow and develop. Initially industries having technical licensing agreements with foreign brands participated in Philippines motorcycle assembly and production industry which led to rapid development took place due to a great demand for motorcycles in the local market and policy government to promote and attract foreign investment.
  • There were four pioneer members, now there are 28 companies from different parts of the world eg. China, Taiwan, Thai, Malasian and Indian. It’s the Japanese brands, which have invested greatly in the country holding a dominant position with 80% of cost-effective. The Philippines affinity for motorcycle usage has helped a lot in the expansion of manufacturing and sales operations in the Philippines. Motorcycle is a viable means of transportation in urban and rural areas.
  • The Philippine market is still not saturated as compared to South East Asian markets. The middle class in Philippines is growing and for them motorcycles is an efficient and cost effective for personal and business needs and they have an easy access to sales and loan facility. Pricing of motorcycles is reasonable and there are many investors who specialise in semi-knocked down units. The local companies have also established technical licensing agreements with foreign brands in order to facilitate localization of inputs and technology transfer. Japanese brands like Honda Kawasaki, Suzuki Yamaha and Taiwanese brand KYMCO are doing operations in the country. Chinese brands are also making them place there.
  • The comprehensive motor vehicle development programme etc. have been established to promote technology transfer, promoting investments and industrial upgrading. There are 28 local and foreign companies who have availed this programme through assistance of BOI at the time PEZA also provides fiscal and non-fiscal incentives which also include tax holiday from 4 to 8 years as well as exemptions from duty.

COVID-19 impact on "Philippines Two Wheeler Market"

The report analyses and includes complete detailed chapter of 50-70 pages about the short term & long terms impact of COVID-19 outbreak on each segment of "Philippines Two Wheeler Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, impact of the virus on leading companies, expected demand schedule and supply chain in the industry and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.

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Key questions answered in this research report

  • What is the total market size by 2035 and what would be the expected growth rate of sales?
  • What are the total sales in 2018-19 and what would be the expected demand over the forecast period?
  • What are the recent developments and business strategy of companies?
  • What are the market opportunities for the existing and entry level players?
  • What are the key market trends?
  • What are the factors which are driving this market?
  • What are the major barriers to market growth?
  • Who are the key vendors in this market space?

Reasons to buy this market study

  • Philippines Two Wheeler Market Facilitate decision-making based on strong historic and forecast data for
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the Reasons to buy this market study
  • Philippines Two Wheeler Market Facilitate decision-making based on strong historic and forecast data for
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the Philippines Two Wheeler Market’s growth potential
  • Identify key partners and business development avenues across the globe
  • Respond to your competitor’s business structure, strategy and prospects’s growth potential



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Philippines Two Wheeler Market Outlook 2019-2035: Growth Opportunities | Trends | Share-Sales | COVID-19 Impact Analysis

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