The Thai motorcycle industry sees an 11% decrease in the 1st quarter of 2024.
The Kingdom’s motorcycle market had enjoyed three years of consecutive growth previously, making it the sixth largest motorcycle market in the world. However, there were only 454,795 motorcycles sold (-11%) in the first three months of the year
Honda, while retaining their top spot, saw a decrease of -9.9%. Their closest rival Yamaha has lost -10.6%. Following in third was Piaggio with a decrease of -29.6%, and local brand GPS who sees a massive -52.2% drop.
However, it is not all doom and gloom for some emerging brands such as Lambretta who saw a +29.8% increase, Lion +302%, and EM +1,534%.
However, the drop is not due to over saturation. Instead, it is due to Thailand’s current economical state which is already in recession due to high household debts, lack of stimulus (investments) and economic reform. The country’s economy is the slowest in the region.
Despite hopes that the economy rebounds this year, the National Economic and Social Development Council (NESDC) has reduced its 2024 growth forecast for Thailand’s economy to 2.2%-3.2%, from the 2.7%-3.7% predicted in November. The forecast was based on a 1.7% GDP growth in Q4 2023, driven by exports and private investment, but a 3% drop in government spending.
Several Thai news outlets had already predicted a decrease in 2024 motorcycle sales in as early as January 2024.
Thailand is the 5th largest major motorcycle manufacturing base with a capacity for 2 million motorcycles, behind China (23 million), India (20 million), Indonesia (8 million) and Vietnam (3 million).
There are 7 motorcycle manufacturers in Thailand. They are Honda, Yamaha, Suzuki, Kawasaki, BMW, Triumph and Ducati.
