Kymco to build P1 billion production plant in Philippines

MANILA, Philippines — The local unit of Taiwanese motorcycle and scooter firm Kwang Yang Co. Motors Ltd. will build a new production facility in the Philippines estimated to cost around P1 billion.

In a press briefing yesterday, KYMCO Philippines Inc. president Allan Santiago said the construction of a bigger plant was in anticipation of higher demand for motorcycles and scooters.

The new facility was also in line with plans to manufacture electric vehicles (EVs).

Santiago said the company is considering two potential sites for the new facility, one in the northern part and in the southern part of Luzon.

Under KYMCO’s plan, the new facility will occupy about five hectares and have a capacity of producing at least 6,000 units per month.

The existing plant in the Sta. Maria Industrial Complex in Taguig City would be closed once the new facility is built.

While KYMCO’s plant in Taguig has a monthly production capacity of 5,000 units, it is not being fully utilized with the company selling only 1,500 units per month.

Still, the company is betting big on the Philippines as it expects demand for motorcycles and scooters, including EVs, to rise.

Santiago sees demand for motorcycles and scooters growing as strong economic fundamentals enable more Filipinos to have greater purchasing power.

With the future of the transport industry seen to go electric, the company would also need a facility suitable for the production of EVs, he said.

For the launch of EVs in the market, he said the company would make the EVs and the Intelligent Open Network Electric Experience (iONEX) platform which addresses riders’ concern on charging through partnerships with government agencies and businesses for charging stations, available at the same time.

“In the absence of the IONEX platform, we cannot sell EVs because we know it will encounter problem in the future. It is very critical to have the platform and the vehicle at the same time,” Santiago said.

KYMCO is a participant in the government’s Motor Vehicle Development Program. It entered the Philippine market in 2008.