German motorcycle maker BMW Motorrad is not worried that a new excise tax for motorcycles would affect local retail prices in the near future, saying it has the technology to comply with the new tax structure.
The Excise Department is in the process of changing the calculation basis for motorcycles, shifting from engine size to CO2 emissions.
The new structure is in line with the recalibrated car excise tax, which was previously based on engine size and went into effect in 2016.
Though the department has yet to announce the final draft of the new excise tax, the tentative structure begins with a 1% excise tax on motorcycles that release less than 10 grammes (g) of CO2 per kilometre (km). Most are mass-market motorcycles.
The maximum excise rate of 18% will be imposed on motorcycles that emit over 130g/km, which are mostly big bikes with engines more powerful than 1,000cc.
After the tax rate is announced, motorcycle makers and distributors will have a one-year grace period to prepare for the new structure.
Markus Glaeser, head of BMW Motorrad Thailand, said the group has already prepared the automotive technology for both cars and motorcycles as its strategy is similar to the government policy.
"We are poised to offer environmentally friendly and fuel-efficient technology in our cars and motorcycles to benefit from these innovations," he said.
"Although the new tax structure is in the draft stage, we have a neutral outlook after the new tax rate goes into effect."
Mr Glaeser said mid-sized motorcycles and big bikes cannot avoid a higher tax rate as they release higher CO2 emissions.
"BMW is confident we can provide motorcycles with a similar engine size to many competitors in the market, but ours will have higher fuel efficiency and release less CO2 emissions," he said.
BMW Motorrad reported a sales record of 1,255 motorcycles over the first eight months this year, 18% higher than the same period last year.
Mr Glaeser said sales gained from two segments -- mid-sized motorcycles with engines of 300-499cc and big bikes above 500cc.
The Land Transport Department reported 35% of BMW Motorrad registrations were mid-sized motorcycles from January to August, with the remainder big bikes.
The department categorises big bikes as above 400cc, with total registration of 20,898 motorcycles for the period.
In a related development, BMW Motorrad unveiled yesterday two new Thai-made bikes -- the F 750 GS and F 850 GS -- along with the C 400 X scooter imported from China.
