Motorcycle makers stare at hazy road ahead

By The Nation

 

 

Amid slump in demand, auto companies have lowered motorcycle production this year to 1.8 million units although they say it is hard to assess when the market will recover.

 

Overall, the Thai motorcycle market in the first four months of the year manufactured 509,963 vehicles, down 12.5 per cent compared to the same period of last year when 582,662 motorbikes were sold.

 

Sales of cars in April was 78,959, less than the 120,457 cars sold in 2019.

 

In April 2020, Honda registered total sales of 57,959 units, down from 2019 ( 91,641 units), while Yamaha sales were down to 14,164 units, from 19,816 in 2019, and Vespa sold 1,937 units, up from 1,796 in 2019.

 

Premium Big Bike maker Harley-Davidson had the highest sales with a total of 187 units (191 in 2019), followed by BMW 125 (124), Ducati 87 (48) and Triumph 76 (157).

 

The Federation of Thai Industries has announced revision of the target of Thai motorcycle production from 2 million units to 1.8 million, divided into domestic use -- 1.5 million units (previously set at 1.7 million units) -- and exports 300,000 units (previously 400,000 units).

 

The main reason the automotive industry has had to downgrade its target this time is due to the global pandemic. Thailand's trading partners have been heavily affected, impacting orders. Thai buying power is also reduced as many people rely on tourism, agriculture and exports for income.

 

The Federation of Thai Industries' vice chairman and Automobile Industry Club spokesman, Surapong Paisitpatnapong, said that the group is monitoring the motorcycle market. In the first three months exports achieved 249,525 units, down by 5 per cent, but the value of exports increased by 11.42 per cent, or Bt20.912.70 billion.

 

"April production should be lower because many factories have stopped production. The export market is still growing because we export premium Big Bikes. Therefore, the revenue grows, However, it is difficult to assess whether the said value will continue to grow or not," said Surapong.

 

Thailand is considered one of the top five motorcycle production hubs in the world, after China, India, Indonesia, and Vietnam. There are 14 OEM production factories including Honda, Yamaha, Suzuki, Kawasaki, SYM, Ryukka, GPX, Benelli, Keyway, Triumph, BMW, Ducati, Harley-Davidson and most recently Royal Enfield.

 

Source: https://www.nationthailand.com/business/30387767

 

-- © Copyright The Nation Thailand 2020-05-13

 

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Wow  just 87 Ducatis less Triumphs, seems  hardly  worth bothering  selling them.

Edited May 13, 20206 yr by bodga

It was the right move to cut down production, because surely there will be a lot of 2nd hand bikes on sale in the near future.

Supply and demand just normal business stuff. Why is it news?

24 minutes ago, VocalNeal said:

Supply and demand just normal business stuff. Why is it news?

Everyday is a slow news day now. 

Just waiting for China to invade Taiwan or India for the next news story.

1 hour ago, rasmus5150 said:

It was the right move to cut down production, because surely there will be a lot of 2nd hand bikes on sale in the near future.

2nd hand bike market has been flooded for a couple of years already, some great deals about.

The majority of new Bikes are bought by working Folk, normally on credit, which the Dealers prefer as more money for them.    Now there is a situation where millions have lost their jobs and won't have the dosh to keep making payments, so stands to reason that there will most likely be tens if not hundreds of thousands of secondhand Bikes being repossessed and sold off at knock down prices, so why would anyone want to buy new for a long time to come ?

3 hours ago, VocalNeal said:

Why is it news?

Have you read, or tried to read any sport news lately? now they really are scraping the bottom of the barrel! Journalists just repeat what they told to print nowadays, there's nothing for them to copy & paste!

A good indication of things to come - Singapore is shutting down terminal 4, terminal 2 is already shut, there's going to be a long lean spell coming up for many, those that instigated the "shutdown" will do well though ???? 

20 minutes ago, CGW said:

Have you read, or tried to read any sport news lately? now they really are scraping the bottom of the barrel! Journalists just repeat what they told to print nowadays, there's nothing for them to copy & paste!

A good indication of things to come - Singapore is shutting down terminal 4, terminal 2 is already shut, there's going to be a long lean spell coming up for many, those that instigated the "shutdown" will do well though ???? 

I'm not sure what this has to do with declining motorbike sales, but I'm willing to be educated. Do continue.

54 minutes ago, Lacessit said:

I'm not sure what this has to do with declining motorbike sales, but I'm willing to be educated. Do continue.

Lost me! what on earth can I teach you? are you not the "SCIENTIST" chap? 

Most sales of 125 Chicken Chaser in our area shouldn't be effected. Grandad dies Monday, rush to Thai Farmers Bank Insurance Dept new one by Friday.

55 minutes ago, CGW said:

Lost me! what on earth can I teach you? are you not the "SCIENTIST" chap? 

Yes indeedy, but I'm always interested in non sequiturs.

14 minutes ago, Lacessit said:

Yes indeedy, but I'm always interested in non sequiturs.

Nah, not interested in explaining something to be told that you know better as your a "Scientist" as you have done in the past, I'm just a humble Engineer how can I hold the interest of someone with such a Superior intellect, imagined or otherwise. ???? 

21 minutes ago, Lacessit said:

Yes indeedy, but I'm always interested in non sequiturs.

Non sequiturs arouse suspicion in the paranoid.  Just sayin'...

 

11 minutes ago, CGW said:

Nah, not interested in explaining something to be told that you know better as your a "Scientist" as you have done in the past, I'm just a humble Engineer how can I hold the interest of someone with such a Superior intellect, imagined or otherwise. ???? 

You know what they say about chemical engineers, too smart to be an engineer, not smart enough to be a chemist.

I'd say you've been in lockdown too long, have a nice life.

Edited May 13, 20206 yr by Lacessit

11 minutes ago, StreetCowboy said:

Non sequiturs arouse suspicion in the paranoid.  Just sayin'...

 

A reminder of Larry Linville. RIP.

11 minutes ago, Lacessit said:

A reminder of Larry Linville. RIP.

I'm going to give that a Top Non Sequitur, and pretend it was not personally relevant;
how would you know if it was? 

16 minutes ago, Lacessit said:

You know what they say about chemical engineers, too smart to be an engineer, not smart enough to be a chemist.

I'd say you've been in lockdown too long, have a nice life.

Is that an intellectual "funny" went over my head or its not amusing ????

What lockdown? made little to no difference to my life, but I'm sure you will be correct, being a "Scientist" n all, I will have to think about it more, superior intellect has me again ???? 

Take care ???? 

4 hours ago, StreetCowboy said:

I'm going to give that a Top Non Sequitur, and pretend it was not personally relevant;
how would you know if it was? 

Was the reference too obscure for you? As Major Frank Burns in M#A#S#H, one of his best lines was

" I'm only paranoid because everyone's against me".

13 hours ago, trainman34014 said:

The majority of new Bikes are bought by working Folk, normally on credit, which the Dealers prefer as more money for them.    Now there is a situation where millions have lost their jobs and won't have the dosh to keep making payments, so stands to reason that there will most likely be tens if not hundreds of thousands of secondhand Bikes being repossessed and sold off at knock down prices, so why would anyone want to buy new for a long time to come ?

Right, time frame is usually 3 months of missed payment before they start to come after the bike, with the pandemic they might wave some time the pandemic has destroyed their economy for the poor there will be some a huge stock of use bike in a few months.

1 hour ago, thailand49 said:

Right, time frame is usually 3 months of missed payment before they start to come after the bike, with the pandemic they might wave some time the pandemic has destroyed their economy for the poor there will be some a huge stock of use bike in a few months.

And a month or so after everyone starts going back to work, a run on new scooters (with minimum down payments and bank financing of course) !

I have just bought a second hand bike and some of the ones i went to view were bought at auction. No doubt from people who couldn't maintain their payments.

It amazes Me this Ferang outburst of careing about the poor. Yet never did anything about those they walkled past back home or bring it up in posts here.

Speaking of: where is the best place to look for a second hand 135cc+ automatic motorbike in the greater Pattaya area?

So,  if I am looking for a new scooter the best place to find one would be Union or Manheim auctions....yes,  maybe,  no?   When I was looking for a pick-up in 2010 the prices at car auctions here was insanE!   I ended up buying one at Collingbourne auction that was still pricey but better than Union. 

Prices will be free falling in 3 month !
We have not seen anything yet in terms of economic disaster made by stupid  Government action.

 

There are still some savings left and credit cards not maxed out.

This will happen soon and then the real hardship starts !

 

Government program and Social Security runs only for 3 month and after this

nobody knows what is going to happen.

 

Bikes and Cars will be dirt cheap. Property market to follow !!!

 

On 5/13/2020 at 1:29 AM, bodga said:

Wow  just 87 Ducatis less Triumphs, seems  hardly  worth bothering  selling them.

Those numbers struck me too.

 

Do they each have dedicated factories or are they and HD contracting to a third party manufacturer?

 

21 minutes ago, GinBoy2 said:

Those numbers struck me too.

 

Do they each have dedicated factories or are they and HD contracting to a third party manufacturer?

 

I stayed in the same building as a couple of English guys that worked at the Triumph factory; I think most are exported

On 5/13/2020 at 9:55 AM, VocalNeal said:

Supply and demand just normal business stuff. Why is it news?

The extremity and far reaching consequences of the current situation perhaps?