Thailand
Thailand: FTI upbeat on motorcycle production
The Federation of Thai Industries (FTI) is maintaining its projection for motorcycle production this year at 2.1 million units, thanks to higher demand driven by the tourism recovery.
The higher volume of foreign arrivals has increased demand for motorcycles, said Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for the FTI’s Automotive Industry Club.
Production for the domestic market is estimated at 1.75 million units this year, while manufacturing for export is expected to reach 350,000 units.
“The tourism industry continues to recover after the easing of Covid-19. Foreign tourists prefer riding motorcycles,” he said.
In May, total motorcycle production increased by 1.7% year-on-year to 218,886 units, covering completely built-up (CBU) and completely knocked-down (CKD) motorcycles.
From January to May, total motorcycle output rose by 3.83% year-on-year to more than 1.07 million units.
The number of CBU motorcycles increased by 26.2% year-on-year to 199,316, but the number of CKD motorcycles plunged by 65.8% to 19,570.
Mr Surapong attributed the decrease to a drop in motorcycle exports as the economy in key markets, including Indonesia, Cambodia, Vietnam, Myanmar and Laos, slowed down.
Another factor was the manufacturing of CKD motorcycles in Indonesia and Vietnam, which caused the two countries to reduce importing parts from Thailand, he said.
During the first five months of this year, motorcycle exports decreased by 14.1% year-on-year to 362,269 units, but the export value increased by 5.63% to 32.4 billion baht, according to the club.
In May alone, motorcycle exports dropped by 32.7% year-on-year to 57,695 units, with the export value standing at 5.38 billion baht, a decrease of 1.75%.
Domestically, motorcycle sales from January to May increased by 11.2% year-on-year to 814,616 units.
In May sales surged by 13.3% year-on-year to 184,091 units.
Mr Surapong said the club expects the global semiconductor shortage will continue to ease, which should support motorcycle manufacturers in all categories.
“Production of big bikes, with 400cc or more, will increase to serve both domestic and overseas markets, following the tourism recovery,” he said.
“People with adventurous lifestyles like big bikes.”
Source: https://www.bangkokpost.com/business/2602501/fti-upbeat-on-motorcycle-production