Thailand's big-bike market is expected to thrive this year despite an overall fall in motorcycle and automotive sales.
"We are feeling upbeat that overall sales of big bikes with an engine size exceeding 500cc will still have very good growth, with sales estimated at about 15,000 units this year from 13,000 in 2013," said Suchart Arunsaengroj, director of AP Honda, the distributor of Honda motorcycles in Thailand.
AP Honda recently raised its 2014 sales target for big bikes from 4,000 to 5,000, an increase of 66.7% from 3,000 sold last year.
Mr Suchart said Thailand's big-bike sector was expected to thrive over the next few years, particularly due to the Japan-Thailand Economic Partnership Agreement that calls for cutting the 30% import tariff on big bikes and their parts by five percentage points a year until it is completely eliminated at the end of 2017.
In a move to capitalise on growing demand for big bikes, AP Honda is gearing up to expand its dealership network, Honda BigWing, to 10 next year from five in 2013.
"New outlets and service centres are the key strategy of AP Honda to expand our big bikes," said Mr Suchart. "Customers are now concerned about after-sales and maintenance services."
AP Honda now operates seven Honda BigWing branches — Bangkok (Lad Phrao), Chiang Mai, Pattaya, Udon Thani, Nakhon Ratchasima, Phuket and Surat Thani. Outlets scheduled to open next year are in Bangkok (Rama III Road and Ratchaphruek Road) and Nakhon Sawan.
Thai Honda Manufacturing, an AP Honda affiliate, now makes 1.65 million motorcycles each year at its Samut Prakan plant, with 90% having engine sizes below 500cc, mainly to serve the Thai market. It also makes six models with engine sizes of 500cc and 650cc, mainly for export.
Nattapon Trinathy, managing director of Indian Victory Motorcycle Co, the authorised importer and distributor of American motorcycle brands Indian and Victory, said demand for heavyweight bikes with engines exceeding 1,000cc would also remain strong this year. He projected sales of 2,000 to 5,000 units a year for the segment.
"Big bikes normally attract customers who love riding and collecting, so the segment has had little impact from economic or political problems," he said.
Mr Nattapon expects his company, which opened its first flagship showroom and service centre in Bangkok in April, could sell 20 Victory and 60 Indian motorcycles this year. Indian Victory also expects to open eight to 10 outlets nationwide over the next five years.
Mr Suchart expects Thailand's overall motorcycle market to drop 15% to 1.7 million units this year from 2 million last year. In the first half of the year, overall motorcycle sales fell 20.1% to 877,746.
AP Honda believes its sales are unlikely to hit the target of 1.4 million this year because of the country's political problems and poor economy.