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Industry expects more than 1M motorcycle sales in 2016

In a media briefing by the Motorcycle Development Program Participants Association (MDPPA), the premier group of motorcycle manufacturers in the country reported combined sales of 544,699 units sold in the first half of 2016, representing year-on-year sales growth of 42 percent.

recorded a new sales benchmark after capping its first six-month performance with a 42 percent year-on-year sales growth. MDPPA members recorded combined sales of 544,699 motorcycle units in the first half of 2016, which exceeded previous projections.

The top 5 brands comprising the MDPPA—Honda Philippines Inc., Kawasaki Motors Philippines Inc., Yamaha Motor Philippines Inc., Suzuki Philippines Inc., and Kymco Philippines Inc.—expect to achieve a milestone with over 1-million units sold by the end of the year. Traditionally, the industry experiences better sales from July to December, and the association is confident that brisk sales will continue. Total sales for 2015 was at 850,509 units for the MDPPA members.

In terms of sales by motorcycle type, the Moped (MP) model or the underbone motorcycle holds the most number of units sold in the first half of 2016, overtaking the Business (BU) models category which led the numbers in H1 2015. With 205,636 units sold from January to June 2016, the MP class posted a 58 percent y-o-y growth.

This is followed by sales of the BU category totaling 171,035 units.  The automatic category, meanwhile, with sales of 125,528 units, registered the greatest y-o-y growth of 66%.  The Street (ST) motorcycle category posted an 11 percent y-o-y growth with 42,149 units.

MDPPA President Rodel Pablo attributes this outstanding mid-year performance to various factors. “The introduction of affordable but reliable motorcycle models propelled the sales performance of MDPPA member manufacturers. The traffic congestion in major cities, such as Metro Manila, also prompts commuters to look for alternative modes of transportation. Commuters consider motorcycles as a fast and affordable transportation alternative,” he shared.

The country’s strong economic performance resulting to an increase in per capita income  and positive outlook have also contributed to MDPPA’s sales growth as the improving economy has allowed more consumers to purchase motorcycles. “The flourishing sales figures of the motorcycle industry are a clear indication of how the country’s improving economy contributed to the group’s mid-year performance. BU motorcycle numbers, for instance, show that many of our countrymen are making a living through tricycles or that many SMEs are using motorcycles in their daily operations for delivery services,” Pablo added.

In photo are the MDPPA Board (L-R): Espie Custodio, Alfredo Lejano, president Rodel Pablo, Atty. Louie Soriano, and Jacinto Cadugo.