Philippines Fast Becoming Motorcycle Manufacturing Hub In Asia

Philippines Fast Becoming Motorcycle Manufacturing Hub In Asia

The manufacturing strategy of most large motorcycle manufacturers of outsourcing the production of their vehicles to developing countries has indeed resulted in more and more affordable machines making their way to the global stage. In addition, it has allowed manufacturers to broaden their model ranges, and offer specialized products for specific markets. 

With Southeast Asia as the biggest industrial hub in the world, nearly all major motorcycle manufacturers have set up shop in the region, benefitting from the more affordable labor costs in countries like Thailand, Indonesia, and Vietnam. On top of this, the outsourcing of production to these countries provides hundreds, if not thousands of jobs, and thereby boosts the economy in these countries by a sizable margin. Having said all that, recent reports and industry developments suggest that the Philippines is an up and coming motorcycle manufacturing hub in the region.

Over the past couple of years, the Southeast Asian archipelago has experienced a significant boom in its local motorcycle industry. With industry giants such as KTM, Honda, and Yamaha setting up shop and building manufacturing facilities in the country, the motorcycle market has grown significantly, not just in terms of local sales, but exports, too. In an Economic Forum conducted by a major local bank, the Department of Trade and Industry highlighted a few focal points which have significantly contributed to the growth of the local motorcycle industry.

For starters, Honda has been manufacturing small-displacement motorcycles in the Philippines, and has been enjoying rather successful sales, particularly of these machines, in the local market. Starting this year, Honda Philippines will be exporting locally manufactured motorcycles overseas, starting with New Zealand. To add to the list, Yamaha has also recently expanded manufacturing capabilities in the country to cater to the more premium side of things. Having recently inaugurated a new manufacturing facility in Batangas, a city in the southernmost part of Luzon, the Japanese motorcycle company is now producing the Yamaha NMAX 155 locally.

Another major contributing factor to the continued growth of the Philippine motorcycle industry is KTM's aggressive expansion in the local market. Since 2017, the Austrian company had been manufacturing its 200, 250, and 390 range of bikes in its factory in Sta. Rosa, Laguna. Since early this year, the factory had been upgraded to manufacture the entire 790 lineup of bikes, as well. With that, the KTM 790 Duke, 790 Adventure, and 790 Adventure R are the first high-displacement "big bikes" to be manufacture on Philippine soil.

This aggressive expansion of multiple players in the motorcycle industry has resulted in an impressive 22-percent growth as of January, 2021, when compared to the same period last year. As the demand for affordable and reliable small-capacity machines continues to rise given the current situation, there is indeed a big chance that we will see more and more major motorbike manufacturers set up shop in the Philippines.

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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