With realistic appreciation of 2016 being an election year which brought the expected up-tick in consumption, the Motorcycle Development Program Participants Association, Inc. (MDPPA) proudly announced that combined sales of their member companies reached a record-breaking 1.14M units last year. 

For MDPPA members Honda, Kawasaki, Suzuki, Yamaha and Kymco, surpassing the million-units mark entailed a dramatic 34 percent increase in sales last year which they now anticipate sustaining, somewhat, in 2017, estimating growth of 12 to 15 percent this year (these after showing single-digit growth rates in the years previous to 2016). 

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MMDPA makes pledge to promote rider safety after 2016’s record sales

The multiplier effect of last year’s elections notwithstanding, the MDPPA attributes the significant growth in 2016 to, among other factors, an increase in foreign currency remittances coming to local buyers, and to those buyers being prompted to consider two-wheeled transport because of the traffic congestion issues which came to a head last year.  With this realistic take on why their customer base has grown dramatically, the MDPPA is, very sensibly, taking action to promote road safety among both new and veteran riders.

About the excise tax on motor vehicles that threatens to raise sticker prices prohibitively, MDPPA members observe that such taxes are traditionally levied on big-ticket luxury goods, and that motorcycles ought not to be affected. Of the 1,140,338 units they report selling last year, 418,043 units or 37 percent were underbone mopeds and 274,104 or 24 percent were automatic transmission scooters.  In contrast, their catchall “others” reporting category which includes premium and special use big bikes has accounted for less than one percent of total sales in previous years.

<SOURCE> Press Statement by Motorcycle Development Program Participants Association, Inc. (MDPPA), “MDPPA hits 1M sales milestone, eyes 12 to 15% growth in 2017,” 2017:

MANILA | 22 February 2017—The Motorcycle Development Program Participants Association (MDPPA), which comprises motorcycle manufacturers Honda, Kawasaki, Suzuki, Yamaha and Kymco, breached the 1 million sales mark for the first time as it capped off 2016 with a 34 percent year-on-year (YoY) sales growth.

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Left to right: Espie N. Custodio, MDPPA Board Member; Rodel I. Pablo, Board Member; Alfredo O. Lejano, Board Member; Armando B. Reyes, President; Edwardo B. Clemente, Board Member; Jacinto R. Cadugo, Road Safety Committee Chairman (photo from MDPPA)

Reporting an all-time sales high of 1,140,338 million motorcycles in 2016, MDPPA has exceeded its initial 952,570 unit and 12 percent sales growth forecasts for the year, posting the highest growth among members of the Federation of Asian Motorcycle Industries (FAMI), which include six other motorcycle associations from Indonesia, Japan, Malaysia, Thailand, Taiwan, and Vietnam.

MDPPA’s 2016 sales growth is attributed to the robust motorcycle demand in the first half of 2016. The group’s midyear motorcycle sales reached 544,699 units, significantly higher than its 382,568 midyear motorcycle sales in 2015.

(chart by MMDPA)
(chart by MMDPA)

Moped still the most popular motorcycle type in the country

With demand for moped motorcycles hitting a new all-time high, the category accounted for the lion’s share of MDPPA’s total motorcycle sales in 2016. The total moped motorcycle sales reached 418,043 units or 37 percent of the aggregate motorcycle sales.

The next leading sales driver was the business motorcycle category, which accounted for 32 percent of total motorcycle sales at 368,270 units.

Meanwhile, the 274,104 unit sales of automatic transmission posted the highest growth among the categories, with 51% increase from 2015. The robust in the category sales contributed greatly with the total sales in 2016.

Positive outlook for the motorcycle industry in 2017

Banking on a remarkable year in 2016, MDPPA is upbeat and sees a positive outlook for the motorcycle industry in 2017. The group is optimistic about replicating, if not surpassing, its 2016 sales growth this year with a conservative target of 12 to 15 percent uptick.

MDPPA credits the local motorcycle industry’s 2016 growth to an increase in private consumption, prevalent use of mopeds for personal purposes, introduction of new models, higher foreign exchange rates and remittances, and traffic congestion in metropolitan areas. The same factors will continue to fuel the industry’s performance this year.

MDPPA’s 2016 performance has definitely set the momentum for hitting an even higher sales mark this year.  MDPPA expects motorcycle sales to accelerate along with increasing demand for mobility especially in major cities.

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