Thai Honda, a motorcycle manufacturer and distributor, is determined to keep its motorcycle prices stable despite mounting production costs driven by prolonged tensions in the Middle East.
Masayuki Hamamatsu, the newly appointed president of Thai Honda, said the company has no immediate plans to raise prices, fearing that higher prices would dampen consumer demand.
Instead, the firm is working closely with auto parts suppliers and dealers to stabilise prices and maintain affordability for Thai consumers.
"The war in the Middle East continues to challenge Thailand's automotive industry and the broader economy in the second half of 2026," Mr Hamamatsu said.
"Oil prices remain volatile, raw material costs are climbing and logistics expenses are rising. These factors are putting pressure on both production costs and consumer purchasing power."
Thai Honda expects Thailand's economy to slow in the latter half of the year, weighed down by global instability and weak household spending.
Banks and car financing companies remain cautious about issuing auto loans, concerned about the risk of non-performing loans amid already high household debt levels.
Despite these challenges, Thai Honda has set a sales target of 1.40-1.43 million units for 2026. Nationwide motorcycle sales are projected to reach 1.73-1.77 million units.
Motorcycles remain a vital mode of transport for many Thais, offering a more affordable alternative to cars and serving as essential tools for work and daily income generation.
Thai Honda has dominated Thailand's motorcycle market for more than 36 consecutive years, supported by a strong dealer network of 1,200 to 1,300 outlets nationwide.
Mr Hamamatsu noted that Thailand remains a critical market, though the company is expanding its footprint in Vietnam, which he described as a high-potential market due to its large population and rapid economic growth.
"Thailand is an important market for Thai Honda, and we are committed to increasing investment here in the near future," he said.
Vietnam will play a key role alongside Thailand as one of the company's major motorcycle production bases in Southeast Asia, said Mr Hamamatsu.
In line with regional trends, Honda is shifting production of its UC3 electric motorcycle from Thailand to its Phu Tho factory in Vietnam starting next month.
The move reflects the rapid adoption of electric vehicles (EVs) in Vietnamese urban centres, he noted.
The production bases will not be strictly divided between electric and petrol-powered motorcycles, but will instead adapt to market demand, said Mr Hamamatsu.
Hayato Seguchi, executive vice-president of Thai Honda, said the Thai plant, with a capacity of 1.75 million units, is fully capable of producing electric motorcycles.
Vietnam's facility has a larger capacity of 2.5 million units.
"Thailand's manufacturing plant can easily integrate an EV production line once demand grows," Mr Seguchi said.
