Thai Honda Motorcycle Factory Closing? Really?

[blakegeee]

A friend of mine recently mentioned that the Honda Motorcycle factory in Thailand will be shutting down to relocate to another country. I have been searching and can't find anything about this so I am assuming that it isn't true. I have heard of some Thai auto industry suppliers "considering" relocating but I haven't even heard anything concrete about that. Has anyone heard anything about this or have any ideas about what this person could have heard to come up with this?

[sinewave]

honda has been here for ages manufacturing motorcycles and is the market leader, its highly unikely they will be moving to another country.

the surrounding countries are even more corrupt than thailand and will only drive prices up and lower quality control if they move.

[apetley]

I heard something similar.

Friend in the motorcycle business told me that Honda will be opening a big plant in Vietnam soon.

[brianinbangkok]

I wonder if the price of Honda's will go up then because of the added import tax ?

Seems to me Honda will lose a lot of local business if they close the Honda factory in Thailand.

Edited April 18, 2009 by brianinbangkok

[blakegeee]

I wonder if the price of Honda's will go up then because of the added import tax ?

Seems to me Honda will lose a lot of local business if they close the Honda factory in Thailand.

"IF" they stop making Honda bikes in Thailand, than the price "WILL" go up. All imported vehicles have 100% duty so they will basically no longer be available. Few people would be willing to pay double all of a sudden. People may prefer them to Yamaha or Kawasaki but not enough to pay double. With so little response and not being able to find anything about it on google, I don't believe that they are closing their Thai factory.

[LivinLOS]

All imported vehicles have 100% duty s

92.6% of all statistics are made up on the spot..

[BigBikeBKK]

All imported vehicles have 100% duty

Completely false.

[Richard-BKK]

Closing the factory is I belief not in the planning, but I have was told that Honda is recognizing its Southeast Asian operation. In line with that recognizing plan is APHonda concentrating more and more on the development of 110 and 125cc motorcycles. The new factory in Vietnam is no new news, Vietnam is one of the fastest growing motorcycle markets, and one outdated factory (which was officially designed to produce parts) can not handle the demand. (More about the second Honda factory)

Honda is setting up, or maybe already has done, a distribution center for Southeast Asia in Malaysia. So parts from Indonesia, Malaysia, Vietnam, or Thailand can be distributed region with one source...

It is said that the Malaysia distribution center is also going to handle the import, and assembly of biker motorcycles. But with the economic crisis many of the plans set-out by automotive manufacturers have changed in the last year. Even today, some manufacturers chance plans on a monthly basis.

Edited April 20, 2009 by Richard-BKK

[blakegeee]

All imported vehicles have 100% duty

Completely false.

Any input to describe what is "not completely false"??? What IS the case than? And I am not talking about illegally importing a bike and then getting a fake/blackmarket book and plates.

[nikster]

Closing the factory is I belief not in the planning, but I have was told that Honda is recognizing its Southeast Asian operation. In line with that recognizing plan is APHonda concentrating more and more on the development of 110 and 125cc motorcycles. The new factory in Vietnam is no new news, Vietnam is one of the fastest growing motorcycle markets, and one outdated factory (which was officially designed to produce parts) can not handle the demand. (More about the second Honda factory)

Honda is setting up, or maybe already has done, a distribution center for Southeast Asia in Malaysia. So parts from Indonesia, Malaysia, Vietnam, or Thailand can be distributed region with one source...

It is said that the Malaysia distribution center is also going to handle the import, and assembly of biker motorcycles. But with the economic crisis many of the plans set-out by automotive manufacturers have changed in the last year. Even today, some manufacturers chance plans on a monthly basis.

Recognizing... you keep using that word, but I don't think it means what you think it means ;)

@Blakegee: Motorcycles (and cars) made in other SEA countries have a much lower tax rate, as do Japanese (FTA with Japan).

[RusticCharm]

Recognizing... you keep using that word, but I don't think it means what you think it means

I think he means 'reorganizing'. 

[LivinLOS]

Inconceivable..

[Richard-BKK]

"Recognizing" means that I have to start looking for a better spellings checker...

[blakegeee]

Closing the factory is I belief not in the planning, but I have was told that Honda is recognizing its Southeast Asian operation. In line with that recognizing plan is APHonda concentrating more and more on the development of 110 and 125cc motorcycles. The new factory in Vietnam is no new news, Vietnam is one of the fastest growing motorcycle markets, and one outdated factory (which was officially designed to produce parts) can not handle the demand. (More about the second Honda factory)

Honda is setting up, or maybe already has done, a distribution center for Southeast Asia in Malaysia. So parts from Indonesia, Malaysia, Vietnam, or Thailand can be distributed region with one source...

It is said that the Malaysia distribution center is also going to handle the import, and assembly of biker motorcycles. But with the economic crisis many of the plans set-out by automotive manufacturers have changed in the last year. Even today, some manufacturers chance plans on a monthly basis.

Recognizing... you keep using that word, but I don't think it means what you think it means

@Blakegee: Motorcycles (and cars) made in other SEA countries have a much lower tax rate, as do Japanese (FTA with Japan).

Oh ok, I had never heard that before. Why do all these second hand big bikes from Japan still have this crazy duty on them than? Does this FTA only apply for new vehicles?

[BigBikeBKK]

Oh ok, I had never heard that before. Why do all these second hand big bikes from Japan still have this crazy duty on them than? Does this FTA only apply for new vehicles?

JTFTA is being applied progressively over a 10 year period. We're in the 2nd year now. By the 10th year import duties on Japanese vehicles will be zero. Don't forget that the current strength of the Japanese Yen has more than erased any savings you might expect to see from the lowering of duty this year. Yoroshiku onegaishiumasu

[blakegeee]

Oh ok, I had never heard that before. Why do all these second hand big bikes from Japan still have this crazy duty on them than? Does this FTA only apply for new vehicles?

JTFTA is being applied progressively over a 10 year period. We're in the 2nd year now. By the 10th year import duties on Japanese vehicles will be zero. Don't forget that the current strength of the Japanese Yen has more than erased any savings you might expect to see from the lowering of duty this year. Yoroshiku onegaishiumasu

Oh really, thats interesting. So is it dropping 10% per year than? This is a bit off topic but why is it that someone with an illegally imported bike can't just go to the local registration office (I'm in Chiang Mai) with their invoice and pay the money for the duties to get the plates? It seems like you have to know somebody that gets them through a source down south. And even that takes a lot of time especially now with the CM police enforcing bike registration.

Also, do you know off hand what kind of duty a vehicle from Cambodia would have? It would likely have originated in the US.

[wackysleet]

Closing the factory is I belief not in the planning, but I have was told that Honda is recognizing its Southeast Asian operation. In line with that recognizing plan is APHonda concentrating more and more on the development of 110 and 125cc motorcycles. The new factory in Vietnam is no new news, Vietnam is one of the fastest growing motorcycle markets, and one outdated factory (which was officially designed to produce parts) can not handle the demand. (More about the second Honda factory)

Honda is setting up, or maybe already has done, a distribution center for Southeast Asia in Malaysia. So parts from Indonesia, Malaysia, Vietnam, or Thailand can be distributed region with one source...

It is said that the Malaysia distribution center is also going to handle the import, and assembly of biker motorcycles. But with the economic crisis many of the plans set-out by automotive manufacturers have changed in the last year. Even today, some manufacturers chance plans on a monthly basis.

Recognizing... you keep using that word, but I don't think it means what you think it means

@Blakegee: Motorcycles (and cars) made in other SEA countries have a much lower tax rate, as do Japanese (FTA with Japan).

Try reorganising.

[Richard-BKK]

Oh ok, I had never heard that before. Why do all these second hand big bikes from Japan still have this crazy duty on them than? Does this FTA only apply for new vehicles?

JTFTA is being applied progressively over a 10 year period. We're in the 2nd year now. By the 10th year import duties on Japanese vehicles will be zero. Don't forget that the current strength of the Japanese Yen has more than erased any savings you might expect to see from the lowering of duty this year. Yoroshiku onegaishiumasu

Oh really, thats interesting. So is it dropping 10% per year than? This is a bit off topic but why is it that someone with an illegally imported bike can't just go to the local registration office (I'm in Chiang Mai) with their invoice and pay the money for the duties to get the plates? It seems like you have to know somebody that gets them through a source down south. And even that takes a lot of time especially now with the CM police enforcing bike registration.

Also, do you know off hand what kind of duty a vehicle from Cambodia would have? It would likely have originated in the US.

There was some time ago, I belief 3 or 4 years that people could get there ride legal without to much hassle. Currently a motorcycle needs to be safe, up-to Euro III emission standard and if your bike is not in the system, or is modified in some way it needs to be retested. For information and the cost of the motorcycle emission test you can visit this website

The duty on a motorcycle imported from Cambodia with its origin being USA would have the same import duty as importing it original from the USA... Depending on the age of the motorcycle you can get discount on the 80% import duty, you can find a table with discounts on motorcycle age here

To see how much Excise Tax you need to pay you can look here

Edited May 6, 2009 by Richard-BKK

[champee]

Oh ok, I had never heard that before. Why do all these second hand big bikes from Japan still have this crazy duty on them than? Does this FTA only apply for new vehicles?

JTFTA is being applied progressively over a 10 year period. We're in the 2nd year now. By the 10th year import duties on Japanese vehicles will be zero. Don't forget that the current strength of the Japanese Yen has more than erased any savings you might expect to see from the lowering of duty this year. Yoroshiku onegaishiumasu

Oh really, thats interesting. So is it dropping 10% per year than? This is a bit off topic but why is it that someone with an illegally imported bike can't just go to the local registration office (I'm in Chiang Mai) with their invoice and pay the money for the duties to get the plates? It seems like you have to know somebody that gets them through a source down south. And even that takes a lot of time especially now with the CM police enforcing bike registration.

Also, do you know off hand what kind of duty a vehicle from Cambodia would have? It would likely have originated in the US.

There was some time ago, I belief 3 or 4 years that people could get there ride legal without to much hassle. Currently a motorcycle needs to be safe, up-to Euro III emission standard and if your bike is not in the system, or is modified in some way it needs to be retested. For information and the cost of the motorcycle emission test you can visit this website

The duty on a motorcycle imported from Cambodia with its origin being USA would have the same import duty as importing it original from the USA... Depending on the age of the motorcycle you can get discount on the 80% import duty, you can find a table with discounts on motorcycle age here

To see how much Excise Tax you need to pay you can look here

When i moved here 7 years ago, I looked at the link you mention. Back than the list mentioned that there would be no duty on bikes over 20 years old. So i put a 1980 Kawasaki 650cc in a container i was sending over from the USA.

When the container arrived, Thai Customs, after reading my Declaration Form, charged me with illegal importation of a motorbike and fined me 90k bt. When i printed a copy of the Thai Govt's link claiming bikes over 20 years ..no duty and showed it to the Custom's Official, he says "Oh, thats only for bikes under 250cc." Though there's no mention of engine size that i could see.

Once the fine was paid the container released i gave the bike to the only person who ride the bike with no book or tag...a Thai policeman.

[bazmlb]

Just wondering why the Honda Dream seems to be very popular in Chiang Mai, Hardly ever see one in Pattaya, but in CNX it seems to be more than waves

[Richard-BKK]

When i moved here 7 years ago, I looked at the link you mention. Back than the list mentioned that there would be no duty on bikes over 20 years old. So i put a 1980 Kawasaki 650cc in a container i was sending over from the USA.

When the container arrived, Thai Customs, after reading my Declaration Form, charged me with illegal importation of a motorbike and fined me 90k bt. When i printed a copy of the Thai Govt's link claiming bikes over 20 years ..no duty and showed it to the Custom's Official, he says "Oh, thats only for bikes under 250cc." Though there's no mention of engine size that i could see.

Once the fine was paid the container released i gave the bike to the only person who ride the bike with no book or tag...a Thai policeman.

Interesting story, only a few things are wrong, the 250cc rule is just 2 years old, and I not belief that the Thai government ever calculated over 10-years on import duty (after 9-years and 10 months but not over 10-years, the import duty discount is 70%)

Probably you got a fine for importing a motorcycle without a import permit, this is needed for a secondhand motorcycle. Did not know that this was 90,000 Baht 10-years ago. On some really old documents I can find this "or the importation of used/secondhand vehicles, an importer needs to obtain an import permit from the Foreign Trade Department of the Ministry of Commerce before the arrival of the vehicles; otherwise he/she shall be liable to a fine equal to 10 percent of the price of vehicle but not less than 1,000 Thai Baht, or exceeding 20,000 Thai Baht." This text is 8-years old....