BANGKOK – Thai Honda dominates 2023 motorcycle sales after winning all segments, solidifying its leading position in the Thai motorcycle industry in 2023 with 1.47 million units. A.T. Group also sees growth, highlighting the resilience of the Thai motorcycle industry.
With an impressive 1.47 million units registered out of the total 1.88 million new motorcycle registrations in 2023, Honda demonstrates a growth rate of 6% compared to the previous year, maintaining its stronghold as the top contender for the 35th consecutive year. Furthermore, Honda secures its position among the top 5 in total registrations.
Mr. Shigeto Kimura, President of Thai Honda Co., Ltd., remarked at the press conference on February 8 that the overview of the Thai motorcycle market in 2023 indicates a favourable trend, evident in the registration of over 1.47 million new Honda vehicles. The A.T. vehicle segment, ranging between 110CC and 300CC, emerges as the most favored segment, commanding a market share of 49%, marking an increase from the previous year.
Additionally, the 5% growth observed in the fourth quarter signals a segment with continuous potential. The introduction of the New Honda Giorno+ model has resonated positively among the young custumers, contributing to the robust growth of motorcycles in the A.T. group over the past year.
In the family car category, Honda secures the second position with a 47% market share, while the sports car segment demonstrates a 3% growth.
The Honda Wave retains its status as one of Honda’s top-selling motorcycle models, maintaining its position since 2009. In 2023, the Honda Wave110i leads with 511,659 units, followed by the Honda Wave125i with 254,141 units.
The Honda Scoopy leads the AT car group with 218,113 units sold, while the Honda PCX160 and Honda Click Series follow closely with registrations of 146,212 units and 114,202 units, respectively. In the sports motorcycle category, the Honda CRF300L leads with sales of 7,840 units.
In the big bike category, comprising motorcycles with a size of 400cc and larger, a total of 15,468 units were registered in 2023, with Honda accounting for 7,035 units. Honda anticipates a stable outlook for the big bike market in 2024, with sales projected to remain around 7,000 units, consistent with the previous year’s figures.
Shadow over 2024 Motorcycle Market
Reflecting on the dynamics of the motorcycle market, Thai Honda observes a robust growth trend throughout 2023, with motorcycle sales surging to 1.88 million vehicles. This surge is attributed to the easing of Covid restrictions, which has spurred increased consumer spending. Consequently, demand for finance loans, including those for motorcycles and cars, has surged, propelling significant growth in the motorcycle market for 2023.
Mr. Wiwat Lertphati, Chief Executive Officer of the Sales and Marketing Division at Thai Honda Co., Ltd., anticipates a more subdued outlook for the motorcycle market in 2024 compared to the previous year. Honda projects the overall motorcycle market to range between 1.70 million to 1.75 million units, representing a decline of approximately 7% to 10% compared to 2023 sales figures.
Three primary factors underpin this cautious projection. Firstly, stringent lending regulations, particularly concerning hire purchase loans, enforced by the Bank of Thailand, are expected to curtail financing options. Secondly, the prevailing economic landscape, characterized by sluggish export performance and supply chain disruptions due to geopolitical tensions, is dampening overall motorcycle sales. Lastly, the persistently rising household debt poses a significant challenge, exerting downward pressure on consumer spending.
“Considering these factors, Thai Honda anticipates Honda motorcycle sales to hover around 1.30 million to 1.35 million units in the small car market, marking a decline from the previous year. However, in the Big-Bike segment, Honda expects sales to remain stable, mirroring the 7,000 units sold in the previous year,” stated Mr. Wiwat.
He attributes the resilience of big bike sales to the segment’s immunity to financing and interest rate fluctuations, as buyers typically possess substantial purchasing power.
“Motorcycles play a vital role as the fifth essential factor for many households, serving both daily transportation needs and livelihoods. The confluence of high interest rates, tightened finance, and escalating household debt in the 2024 market, coupled with lower sales figures, raises concerns about the accessibility of motorcycles, a quintessential aspect of Thai households.” Mr. Wiwat explained.
Given that approximately 70% of motorcycle purchases in Thailand are made through installments, Thai Honda remains committed to providing quality motorcycles at affordable prices to its customers, prioritizing their needs amidst challenging market conditions.
EV motorcycles still not the answer
Electric motorcycles have yet to emerge as the definitive solution in Thailand’s transportation landscape. Despite the burgeoning popularity of electric cars in the country, Honda notes that the adoption of electric motorcycles remains gradual. In 2023, sales of electric motorcycles surged to 21,800 units, marking a remarkable 221% increase from the previous year. Projections for 2024 indicate a continued upward trend, with anticipated sales ranging between 32,000 to 35,000 units.
However, significant challenges persist, particularly concerning infrastructure. Unlike electric cars, which predominantly rely on charging stations, electric motorcycles in Thailand predominantly utilize battery swapping systems. Furthermore, consumers perceive minimal disparity in fuel efficiency between electric and gasoline-powered motorcycles. Additionally, both electric motorcycles and cars face depreciating resale values, further deterring widespread adoption.
Thus, despite the evolving electric vehicle (EV) trend, Honda acknowledges that a complete transition to 100% electric motorcycles in Thailand remains impractical for drivers. Nevertheless, Honda reaffirms its commitment to aligning with the EV trend while recognizing the existing barriers to full-scale adoption
In his concluding remarks, Mr. Shigeto Kimura expressed heartfelt gratitude to Thai customers for their unwavering support throughout his five-year tenure as President of Thai Honda Co., Ltd. He announced his imminent departure in April, marking the conclusion of his service in Thailand as his transition back to Japan to assume administrative responsibilities.
Regarding inquiries about the evolving landscape of Japanese automotive companies in Thailand, particularly concerning the appointment of Thai executives, Mr. Kimura elucidated Honda’s flexible approach. He emphasized that Honda does not impose strict rules or restrictions dictating the nationality of executives.
While acknowledging the advantages of having Thai executives for clear user communication, Mr. Kimura underscored the importance of seamless coordination between Thailand and Japan. He highlighted that the timing and mutual understanding between executives in Japan and Thailand play pivotal roles in decision-making, indicating openness to considering senior executives of Thai nationality when circumstances align appropriately.
Honda’s profit rose on the back of strong U.S. demand
In Tokyo, the Associated Press reported that Honda’s profit rose 3.5% in the October-December quarter from a year earlier on the back of solid demand in the U.S. and Europe and a recovery in its home market, the company said Thursday.
Tokyo-based Honda Motor Co.’s profit in the last quarter was 253.3 billion yen, or $1.7 billion. Quarterly sales jumped 21% to 5.39 trillion yen ($36 billion).
A favorable exchange rate helped amplify Honda’s overseas profits in yen terms and is expected to continue through the rest of the fiscal year, which ends in March.
The dollar has been trading at about 148 Japanese yen, up from about 140 yen last year.
All the automakers have been hurt by shortages of computer chips and other parts, partly due to disruptions in manufacturing because of the coronavirus pandemic. The latest results show Honda has mostly but not yet fully recovered to pre-pandemic levels in some locations.
Honda’s motorcycle sales grew in recent months in Brazil and Europe, according to the manufacturer of the Fit small car, Super Cub motorcycle and Asimo robot.
Honda said it remained committed to “initiatives toward electrification,” pointing to the global electric vehicle concept models shown at the Consumer Electronics Show in Las Vegas, such as the Saloon and Space Hub.
Japanese automakers including Honda have lagged in the global push toward pure EVs, partly because of their strength in other green models such as hybrids and fuel cells.
Over the first nine months of the fiscal year, Honda sold 3.1 million vehicles, up from 2.7 million vehicles the previous year, with sales especially strong in the U.S.
A decline in Honda’s vehicle sales in Thailand and Indonesia was offset by rising sales in China.
