Motorcycle Makers Expect 4% Growth In Production
According to motorcycle manufacturers in Thailand, they are planning to increase their production rate between 2 and 4 per cent. This means that from the previous figure of 2.10 million units, the industry is planning to produce 2.15 million units this year. These figures were based on the report made by Krungsru Research and every Kawasaki dealer is positive that it will be beneficial to all because of the positive factors that govern not just the domestic market but the export end as well.
Krungsru Research’s in-house analyst, Wanna Yongpisanphob, said that the yield will continue to grow in a steady rate between 2019 and 2021 but the year on year starting 2020 to 2021 is expected to increase from 0 to 2 per cent. When this happens, the motorcycle yield will be between 2.12 million to 2.19 million units.
She explained that the sales of motorcycles in the domestic market are expected to enter a sustained growth level because of the Thai economy that is also expanding in a steady rhythm. In addition, the Small Business Credit Guarantee Co has also organized an initiative in order to help drivers of motorcycle taxis as they apply for a loan in order to purchase new units of motorcycles. The loan will be a maximum of 100,000 baht while another 50,000 baht will be given in case there are problems requiring the unit to be repaired. The end goal of the program is to eliminate the problems cause by unregistered lenders which resulted to high outstanding debts for these drivers who just want to make a living.
Ms. Wanna added that the welfare card program started by the government will remain and more funds will be gathered so that motorcycle buyers can continue to borrow in the future. After the election, the funds in circulation have also increased especially in provincial regions. Therefore they are expecting that every Kawasaki dealer and of other brands will be happy to know that they are already projecting an increase in sales of 2 to 4 per cent from 1.82 million they are going to sell 1.86 million units of motorcycles for this year.