Motorcycle Group Eyes 12-15 Percent Sales Growth by Year-End

The Motorcycle Development Program Participants Association (MDPPA) is eyeing a 12-15% sales growth as it gears toward the year-end after enjoying a 13 percent year-on-year sales increase for the first half of 2017. During the MDPPA forum last Wednesday, July 26, MDPPA President Armando Reyes said that the group--which is composed of motorcycle manufacturers whose members include Honda, Kawasaki, Suzuki, Yamaha, and Kymco--has capped the first half of 2017 with 613,896 motorcycle units sold, which has grown from the 544,788 units delivered during the same period in 2016. "MDPPA is on track to achieve its motorcycle sales forecast of 12 percent to 15 percent increase for this year," the MDPPA president said. Reyes attributed the surge in figures with the "good economy enjoyed by the Philippines, introduction of attractive models, greater mobility and more affordable down-payment options provided by dealers." "Besides the good economy and more people having increased purchasing power, the strong market performance for the first six months of 2017 reflects the continued bullish demand for motorcycles. This is because motorcycles provide a practical and effective transportation alternative in the face of the worsening traffic conditions, particularly in Metro Manila. They are also very trendy and cost-efficient," Reyes added. Further, the association expressed confidence that it will continue the momentum to match the growing market demand. Based on the said figures, MDPPA Auditor Rodel Pablo estimated that 90 percent of the sales are financed through installment basis as opposed to the 10 percent who bought their units outright in cash. Last year, the MDPPA breached the 1 million-sales mark for the first time. The automatic transmission (AT) type motorcycles provided the firepower for the MDPPA's sales growth for the first half after posting a 40 percent surge, after rolling out 175,707 units for the first half of the year, as compared to the 125,552 units for the same period of last year. The group attributed the bullish performance of AT motorcycles to convenience. A growing number of new models also feature sleek and trendy designs to cater to younger users. Other motorcycle types such as the big bikes, three-wheelers and all-terrain vehicles (ATVs) recorded a 25 percent sales growth. Total sales in this category reached 1,080 units compared with only 865 units sold in the first half of 2016. Furthermore, the moped or utility motorcycle type continues to be the the top-selling category for the first half of 2017. Despite a slight slowdown on sales, mopeds sold 203,741 units for January- to June 2017 as compared to the 205,733 units delivered for the same period the previous year. Business motorcycles--which was spurred by the booming e-commerce industry, per MDPPA claims--were the second-highest performers with 202,098 units sold for the first half as opposed to the 170,979 sales volume achieved for the first six months of last year. The group claimed that sales for business motorcycles continue to rise as online businesses continue to increase as well as the trend of staying at home and going out just for the necessities has also fueled sales of business motorcycles, which are used as delivery vehicles. Street motorcycles experienced a decline of 25 percent, selling only 31,270 units in the first half of 2017 from the 41,659 units sold for the same period in 2016.