Thailand's motorcycle market is expected to hit 1.8 million units sold this year thanks to the country's economy and an increase in farm product prices helping to boost purchasing power.
Praphan Phornthanavarsit, chief operating officer of Thai Yamaha Motor Co, the local unit of the Japanese motorcycle maker, said the overall market in the first half exceeded the company's projection of full-year sales of 1.75 million units.
The Land Transport Department reported new motorcycle registrations from January to June surged 4.35% to 949,608 units, led by Japanese brands, sporty Thai brands such as GPX, and the Italian scooter Vespa.
Honda controlled the largest market share with 78.5%, while Yamaha was second with 14.7%.
Mr Praphan said positive momentum in the motorcycle market came from new government megaprojects, the tourism sector and the recovery of exports.
Moreover, a drought is not expected to hurt crops or cut farmers' income this year, while recent floods in the northeastern and southern regions only had a short-term impact.
็However, household debt, which grew to 300,000 baht per household in 2017, compared with 298,000 baht the previous year, still weighed on prospects.
"Overall the motorcycle market is quite bullish in every segment except mopeds, small motorcycles between 100-150cc, which represent 50% of the market. They showed only slight growth," he said, adding sporty motorcycles and big bikes remain very healthy.
"Amid the current economy, I think the motorcycle market is okay at 1.7-1.8 million units sold per year for distributors, but it will be tough to achieve 2 million units as happened from 2011-2013 unless the country has a very high GDP growth rate," said Mr Praphan.
Thailand's motorcycle market exceeded 2 million units sold for the first time in 2011 at 2.007 million, climbing further to 2.129 million in 2012, which coincided with an increase of minimum daily wages to 300 baht nationwide.
But in 2013, the market dropped to 2.004 million because of a bearish economic sentiment, and it has stayed below 2 million from 2014 until present.
According to Mr Praphan, Yamaha also increased its sales target in 2017 from 285,000 to 305,000 motorcycles, representing a rise of 24.5% after witnessing a growth of 11.8% to 139,389 over the first half.
