BMW upbeat on bike sales despite slow Q1

BMW upbeat on bike sales despite slow Q1

Factory production woes over, says firm

Markus Glaeser, head of BMW Motorrad Thailand, expects the rising sales momentum in May and June to continue the rest of the year.
Markus Glaeser, head of BMW Motorrad Thailand, expects the rising sales momentum in May and June to continue the rest of the year.

BMW Group Thailand is keeping a positive outlook on big-bike sales this year despite sales contracting in the first four months of the year.

According to Markus Glaeser, head of BMW Motorrad Thailand, the company saw a significant increase in motorbike sales in May and June and expects the momentum to continue until year-end.

From January to April, BMW Motorrad reported sales of big bikes totalling 461 units, down 20% year-on-year.

European firms typically consider motorcycles with engine sizes over 500cc big bikes, while the Federation of Thai Industries and Japanese firms define them at 400cc.

The overall big bike market above 500cc rose by 7% last year to 18,500 motorcycles, according to new registration figures from the Land Transport Department.

Mr Glaeser said the drop in sales in the first four months this year was largely due to BMW being behind delivery, following the adjustment of its BMW Motorrad assembly line in Rayong.

"During the adjustment, BMW Motorrad's assembly line hit a little snag," he said. "For example, the production of two models -- the R 1200 GS and R 1200 GS Adventure -- was a bit slow, delaying delivery to customers."

He said the production situation and delivery have returned to normal.

At present, BMW Group Manufacturing Thailand, the assembly plant arm of the Munich-based parent firm, is the production hub for both BMW cars and motorcycles distributed in Thailand and around Asia. The Rayong facility is the only site in BMW's global network with full operations for all three brands.

The plant, worth 4.7 billion baht, can make 20,000 BMW and Mini cars a year, and 10,000 units of BMW Motorrad motorcycles a year.

Mr Glaeser said BMW Motorrad has allocated half of its production for export to China, Malaysia, Indonesia the Philippines and Vietnam.

He did not give the export estimates for 2017, saying only that the shipment will depend on the market condition of each country.

China, Indonesia and Vietnam, where the motorcycle populations are large, are potentially big markets for BMW Motorrad exported from Thailand.

Last year, BMW shipped 2,215 motorcycles, up from 1,000 units shipped the year before.

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