Traffic woes push motorcycle sales up

After capping 2015 with an eight percent year-on-year growth on motorcycle sales, the Philippines holds the best growth performance among the Federation of Asian Motorcycle Industries (FAMI) member countries.
The Motorcycle Development Program Participants Association (MDPPA), a group of motorcycle manufacturers in the Philippines, said the total 2015 unit sales of its member companies in the country achieved an eight percent year-on-year increment.
Collectively, MDPPA members Honda, Kawasaki, Suzuki, Yamaha and Kymco sold 850,509 units last year, up by more than 60,000 units from 2014.
With the country’s sustained economic growth and an increasing number of citizens who can afford new vehicles, motorcycles have become a transportation alternative in the greater Manila area and other key cities where traffic continues to worsen.
According to an Asian Development Bank (ADB) report, motorcycles are the second most preferred mode of transportation in the Philippines comprising 20.7 percent of the country’s automotive industry.
MDPPA attributed the past year’s notable growth to the aggressive launch of many new models, dealer initiatives, as well as the anti-counterfeiting campaigns of both the group and individual members to bolster the sales of genuine branded motorcycles.
Early sales data for the first two months of 2016 reinforces the group’s positive outlook for this year. MDPPA recorded a 34 percent year-on-year sales growth for the first two months of 2016 prompting MDPPA to forecast a year-on-year increase of at least 25 percent in the first half of the year.
If the trend continues, MDPPA is positive that its members can surpass the 12 percent to 15 percent growth initially projected for 2016.
“Given the heavy traffic condition in the metro today, motorcycles have become a better transportation alternative for majority of the commuters.
This kind of demand contributed greatly to the growth we achieved in 2015, and I believe this will be the same factor that would greatly contribute to the sales targets we are aiming for this year,” said MDPPA president Rodel Pablo.                                    

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