Yamaha eyes better traction
Thai Yamaha Motor Co, the local unit of the Japanese motorcycle maker, is optimistic about its small motorcycle segment after not launching a new model for nine years.
The company recently introduced the locally made Yamaha Finn, a 115cc motorcycle, also known as a moped, categorised in the same segment as the Yamaha Spark.
Chief operating officer Praphan Phornthanavarsit said although Yamaha is now focusing on sport motorcycles and big bikes, the moped remains an important segment in Thailand’s motorcycle market, representing roughly 50% of total sales.
Mopeds should see better sales as the Thai economy improves after witnessing flat growth of less than 2 million units sold per year the past several years.
“We have to offer motorcycles to cover all segments here and our parent firm has allowed us to produce and develop moped models to serve the local market,” he said.
“Before buyers preferred sport motorcycles and big bikes, so Yamaha had to prioritise those segments in its business strategy. But now mopeds have strong potential with new models launched in the recovery motorcycle market.”
In 2017, Yamaha expects moped sales of 55,000 motorcycles, up sharply by 17.7% with a market share of 5% in this segment.
The overall moped market in the first half of the year rose by 9% to 473,416 units.
Mr Praphan said Yamaha increased its sales projection for 2017 to grow sharply by 22.5% to 300,000 motorcycles from 285,000 forecast earlier. Its market share is expected to be 16.7%, ranked second in the motorcycle market after rival Honda, now at 78%.
Yamaha posted sales volume of 140,000 motorcycles in the first half, up by 12.2%, with a market share of 14.7%. Automatic motorcycles accounted for 57.5% of units, while sport motorcycles and big bikes represented 25%, and mopeds made up the remainder.
He said Yamaha believes the Thai economy should drive the motorcycle market to a 3.3% rise to 1.8 million units. The total motorcycle market rose 4% to 951,959 sold from January to June.
“The motorcycle market grows in line with Thai GDP, and is projected to grow by 3.5-4% in 2017 thanks to new public and private investment, the surging tourism sector and rising farm product prices,” said Mr Praphan.
Thailand’s motorcycle market surpassed the 2-million-unit sales level in 2011 with 2.007 million, then again in 2012 with 2.128 million and in 2013 with 2.004 million. Those gains were attributed to the minimum daily wage hike of 300 baht nationwide.