Thai motorcycle production to exceed 2.1 million units amid tourism rebound
The Federation of Thai Industries (FTI) is forecasting that motorcycle production this year will surpass the initial target of 2.1 million units. The revival of the tourism sector and the easing of the global semiconductor shortage are cited as the primary factors for this optimistic outlook.
Surapong Paisitpatanapong, the vice-chairman and spokesperson for the FTI’s Automotive Industry Club, attributes this increased demand to the reopening of borders and the resurgence of tourism, as many foreign tourists prefer motorcycle travel.
At the start of the year, the FTI had estimated the local motorcycle production for 2023 to be at 2.1 million units. The expectation was that 1.75 million units would cater to the domestic market, with the remaining 350,000 units directed towards exports.
However, the FTI’s report shows that Thailand’s motorcycle production capacity in July fell by 7.84% year-on-year to 194,773 units. Completely built-up (CBU) units saw an increase of 11.1% year on year, reaching 170,123 units. In contrast, completely knocked-down (CKD) units saw a significant decline, plummeting by 57.6% year on year to 24,650 units.
From January to July, the production capacity grew by 3.08% year-on-year to 1,501,470 units. During this period, CBU output rose by 19.3% year-on-year to 1,297,727 units, while CKD output experienced a notable decrease, dropping by 44.8% year-on-year to 203,743 units.
In July, domestic motorcycle sales surged by 12.7% year-on-year to 150,779 units. The sales of internal combustion engine (ICE) motorcycles mirrored this increase, rising by 12.7% year-on-year to 150,770 units. However, sales of hybrid motorcycles experienced a drastic drop, falling by 81.3% year on year to just nine units.
For the first seven months, domestic motorcycle sales saw an overall increase of 10% year-on-year to 1,144,760 units. During this period, sales of ICE motorcycles rose by 10% to 1,143,722 units. Hybrid motorcycle sales decreased by 9.11% year-on-year to 818 units, whereas battery-powered motorcycles witnessed a significant increase, doubling to 220 units.
In terms of exports, the FTI reported a slight decline of 1.72% year on year in July, totalling 64,238 units. Despite the decrease, the value of these exports saw a substantial gain of 29.8%, amounting to 5.69 billion baht.
For the first seven months, motorcycle exports decreased by 15.3% year on year to 491,872 units. Despite this, the export value for this period saw an increase of 8.29% year on year, amounting to 41.6 billion baht.
Exports of motorcycles and motorcycle parts in July witnessed a significant surge, increasing by 26.1% year-on-year to 6.18 billion baht. For the first seven months, these exports rose by 8.43% to 44.6 billion baht, reports Bangkok Post.
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