The production strategy of most large motorcycle manufacturers to outsource vehicle production to developing countries has indeed resulted in increasingly inexpensive machines finding their way into the worldwide arena. In addition, it allowed manufacturers to expand their model ranges and offer specialized products for specific markets.
Because Southeast Asia is the biggest industrial center on the earth, just about all major motorcycle manufacturers have arrange shop within the region, making the most of more cost-effective labor costs in countries akin to Thailand, Indonesia and Vietnam. Moreover, outsourcing production to those countries provides tons of, if not hundreds, of jobs and thus significantly boosts the economy in these countries. Having said all this, recent reports and industry developments suggest that the Philippines is a thriving motorcycle manufacturing hub within the region.
Over the past few years, the Southeast Asian archipelago has seen a big boom within the local motorcycle industry. With industry giants akin to KTM, Honda and Yamaha opening stores and constructing manufacturing plants within the country, the motorcycle market has expanded significantly, not only when it comes to local sales but additionally in exports. At the Economic Forum organized by a big local bank, the Department of Trade and Industry highlighted several key points which have contributed significantly to the event of the local motorcycle industry.
To start with, Honda produces small displacement motorcycles within the Philippines and has been doing quite well when it comes to sales, especially of those machines, within the local market. Starting this yr, Honda Philippines will export locally manufactured motorcycles abroad, ranging from New Zealand. To add to the list, Yamaha recently expanded its production capabilities within the country to cater to more premium needs. After recently opening a brand new manufacturing facility in Batangas, a city in southernmost Luzon, the Japanese motorcycle company is now locally producing the Yamaha NMAX 155.
Another essential factor contributing to the continued growth of the Philippine motorcycle industry is KTM’s aggressive expansion within the local market. Since 2017, the Austrian company has been producing at its factory in Sta. bicycles from the 200, 250 and 390 series. Róża, Laguna. Since the start of this yr, the factory has been upgraded to also produce the complete 790 range of bikes. This makes the KTM 790 Duke, 790 Adventure and 790 Adventure R the primary high-capacity “big bikes” produced within the Philippines.
This aggressive expansion by many players within the motorcycle industry has resulted in a formidable 22 percent growth as of January 2021 in comparison with the identical period last yr. As the demand for inexpensive and reliable low-performance machines continues to grow in the present climate, there’s indeed probability that increasingly major motorcycle manufacturers will arrange shop within the Philippines.
