Lower prices keep big wheels rolling

Lower prices keep big wheels rolling

The local market for big bikes looks set to continue thriving, helped by lower retail prices after several manufacturers opened or expanded production facilities here.

Indian and Victory motorcycles are lined up outside Indian Victory Motorcycle Co’s showroom on Phatthanakan Road in Bangkok. Big bike sales are projected to rise this year as manufacturers increase their local output.

Indian Victory Motorcycle Co, the authorised importer and distributor of US motorcycle brands Indian and Victory, predicts overall sales will grow by 12.8% this year to 18,000 big bikes.

Land Transport Department figures show 15,960 big bikes, defined as having an engine size of more than 400cc, were sold here last year, up by 22% from 2013 and well outpacing the country’s overall motorcycle market, which declined by 15.2% to 1.7 million.

Indian Victory managing director Nattapon Trinathy said the market would see even more aggressive competition this year.

Western and Japanese manufacturers have over the last five years built factories in Thailand to cut logistics and import duties, leading domestic retail prices to fall by 30% on average, he said.

For example, England's Triumph started operations at its local factory in 2008 and Italy's Ducati in 2010, with output for domestic sales and export.

BMW Group Thailand last year announced it would assemble two models of its BMW Motorrad at its Rayong plant.

Japan's Honda has expanded its Samut Prakan facilities to include even larger engines of 500cc and 650cc.

“Affordable prices will stimulate sales of big bikes and attract potential new buyers along with riders wanting to shift to bigger engines,” Mr Nattapon said. “More importantly, Thailand’s recovering economy will play a vital role in persuading consumers to buy a premium motorcycle this year.”

Last April, Indian Victory opened its first showroom and service centre at a cost of 100 million baht on Phatthanakan Road in Bangkok.

The company sold 40 big bikes in 2014, mostly the Indian brand, and expects to sell 60 Indian and 20 Victory motorcycles this year.

Indian Victory will distribute big bikes from two more companies this year — Japan's Zero Engineering (10 expected to be sold) and Russian sidecar motorcycle maker Ural (15 targeted for sale).

Mr Nattapon is also managing director of Cycle Culture Show Co, which organises the annual Bangkok Motorbike Festival.

This year's event, at CentralWorld from Jan 28 to Feb 1, is expected to see 800 bookings for 12 big-bike brands, generating 400 million baht.

Do you like the content of this article?
COMMENT