Philippine motorcycle market drops 48% in first half

CEBU, Philippines —  The Philippine market for mortorcylces fell 47.82 percent in the first half of 2020, considered as the worst sales performance worldwide.

A data released by Motorcycles Data (McD) Team, considered this market crash as “one of the worst performance worldwide in the first half.”

According to the report, in June 2020 sales fell again (-36.7%) ending the half 641.478 sales, down 47.82%.

Because of this, McD Team has further downgraded the market with 2020 outlook down to 18.6 percent before to expect a strong recovery in the 2021.

The start of 2020 had been not bad for the two-wheeler market, which probably was running to hit a new all time record. In fact, sales grew up in Jan-Feb by eight percent before the Covid19 spread which forced the government to impose the shutdown to plants and distributors.

Motorcycle sales in March dropped by over 62.5 percent. The first quarter ended with a total of 480.000 sales, down 24.3 percent. In April, due to the complete shutdown of commercial activities, sales were zero.

During May activities re-started very late and slow with sales down 82.8 percent.

Even in June sales were not fully active in the country and the market closed the month reporting 125.263 sales, down 36.7 percent.

Following June performance, McD projects full year below two million units, losing 18.6 percent.

However a fast recovery is expected in 2021.

In 2019 the two-wheeler market hit the 8th all time record in a row.

Despite a slow start of the year, during the 2019 the consumer demand for two wheeler was strong and the year ended with a new – almost sensational – sales record with 2.44 million sales (including rickshaw a commercial tricycles), up 10.9 percent from the previous year.

In the 2019 the country was the 5th largest in the World and was the fastest growing between 2012 and 2019.

The Philippine motorcycle market is led by Japanese Honda with over 0.6 million sales in the 2019 holding over one-third of market share. In second place Yamaha is not far and is ahead of Suzuki, Kawasaki and Kymco.

Chinese brands are estimated at a combined share of 10 percent while the Indian Bajaj Auto, operating in partnership with Kawasaki, is the leader in the Three Wheeler segment.

KTM, which has established in the country a 7.000 uts/year production plant, is the leader among the premium brands averaging 300 sales per month, while BMW is fast growing and in the 2019 hit the new record outpacing the 1.000 units, foe the first time.