Thai motorcycle exports surge 157% in October to 6.5 billion baht
Motorcycle exports from Thailand are on the rise, driven by increasing demand for completely knocked-down (CKD) units, according to the Federation of Thai Industries (FTI).
The surge in exports during October reflects a growing interest from overseas markets, particularly in Asia, where countries are placing more purchase orders for reassembly purposes.
Surapong Paisitpatanapong, Vice Chairman of the FTI and spokesperson for its Automotive Industry Club, highlighted the opportunity this trend presents for Thailand, a key motorcycle producer. He noted that countries such as Vietnam, Indonesia, Cambodia, and Japan are seeking new models to cater to consumer demand.
“Purchase orders from Vietnam, Indonesia, Cambodia and Japan are rising as they want new motorcycle models to serve customers.”
In October, exports of motorcycles, including both CKD and completely built-up (CBU) units, soared by 157% compared to the previous year, reaching 175,066 units. This is a significant increase from 68,136 units exported in the same month last year. The export value also saw a rise, climbing 16.6% year-on-year to 6.5 billion baht, up from 6 billion.
Despite this positive momentum in October, the first ten months of the year showed an overall decline in motorcycle exports by 15.8%, totalling 776,362 units. The FTI did not specify the cause of this decline, but it mirrors a similar trend observed in the first seven months of 2024, where export volumes decreased by 10.1% year-on-year to 473,075 units.
The club previously attributed this to neighbouring countries boosting their motorcycle production, thereby reducing imports from Thailand.
Sale fluctuations
Domestic motorcycle sales have also experienced fluctuations. In October, sales increased by 3.8% year-on-year to 140,113 units. However, total sales from January to October were down by 10% year-on-year, amounting to 1.42 million units.
The club reported that sales of internal combustion engine-powered motorcycles fell by 10% year-on-year, while electric motorcycle sales decreased by 9%.
The FTI linked the decline in domestic sales partly to stringent lending practices by banks and financing firms, which are cautious of non-performing loans amidst high household debt levels.
Nonetheless, a resurgence in the tourism sector during the second half of the year is anticipated to bolster the domestic motorcycle market, Surapong noted.
“We expect the number of foreign tourist arrivals to continue to increase, reaching the target of 36.7 million in 2024. This should boost motorcycle demand.”
The club noted that tourism activities often enhance motorcycle production, as many tourists enjoy riding motorcycles while visiting Thailand. The FTI has maintained Thailand’s total motorcycle production target of 2.12 million units for 2024.
From January to October, motorcycle production dipped slightly by 1.4% year-on-year to 2.03 million units. While CBU production decreased by 10.8% to 1.58 million units, CKD production saw a significant rise of 57.3%, reaching 444,849 units, reported Bangkok Post.
