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4 Jan 2010


Motorcycle Industry in Year of the Tiger to Grow 5-9 Percent (Business Brief No.2725)

In 2009, the Thai motorcycle industry was hit hard by the economic crisis, causing sales to fall continuously beginning early in the year. However, sales began to pick up toward the year's end, thanks to economic recoveries at home and abroad, plus the government's economic stimuli, as well as the recent surge in farm produce prices, new motorcycle models launched by manufacturers to attract younger buyers and eased credit terms. KASIKORN RESEARCH CENTER (KResearch) expects that sales of motorcycles in 2009 may have contracted 11 percent to about 1,520,000 units.

In 2010, it is expected that the domestic motorcycle market will be supported by additional positive factors, which would help drive sales to growth of around 5-9 percent to 1,590,000-1,650,000 units. Aside from improving economic conditions in the country and abroad, the government's economic stimuli, higher agricultural prices, relaxed credit terms and other new supporting factors, such as heightened competition among motorcycle manufacturers and the low base effect of 2009, should all help boost sales considerably in 2010. Nevertheless, the domestic motorcycle market may be vulnerable to certain risks, including uncertainty toward the economic recovery, domestic political problems and a lack of clarity in investment laws.