AP Honda, the local distributor of Japanese motorcycles, is looking forward to a big-bike boom, with sales targeted at 3,000 units this year.
New BoI incentives will encourage Japanese makers, says Mr Suchart. SOMCHAI POOMLARD
Sales director Suchart Arunsaengroj said as part of the move the company will this year open three new Honda Big Wing centres _ which are big-bike showrooms _ and service centres in Pattaya, Phuket and Udon Thani.
Honda now has Big Wing centres in Bangkok and Chiang Mai.
The company started actively focusing on the Thai big-bike market last year when it introduced three new 500cc models premiering at the Thailand International Motor Expo.
"The Thai big-bike market enjoys healthy 20% annual growth," said Mr Suchart.
"This year will see 7,000 big bikes of all brands sold including 3,000 Hondas."
He said the big bikes will gradually grow cheaper in the near future thanks to the Japan-Thailand Economic Partnership Agreement.
That pact 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.
But the big-bike market remains very small in Thailand and is dominated by grey-market importers.
Mr Suchart said its growth in the last couple of years is due to changing consumer lifestyles and government encouragement of the manufacture of this type of motorcycle.
Last year for the first time, the Board of Investment (BoI) agreed to let big bikes of at least 250cc apply for BoI incentives.
The previous BoI minimum was set at 500cc.
Mr Suchart expects the move will prompt Japanese companies to locate their big-bike factories in Thailand.
But he said big-bike importers are now feeling the pinch from higher excise taxes on big bikes under the new tax structure.
Effective from Jan 1, the new structure now requires motorcycles of 500cc and above to pay 2% more on top of the existing 3% levied on ex-factory prices.
Importers still have lots of back orders sold at the prices under the old tax structure at the Thailand International Motor Expo late last year.
Most of those back orders are due to be delivered this year.
AP Honda itself has 444 units placed in back order from the show.
Mr Suchart said the company expects sales growth of 4% this year to 1.55 million units in a total market forecast at 2.15 million units, up by 7% from last year.
AP Honda sold 1.49 million motorcycles of all types in 2012, pushing its market share to 70%.
Mr Suchart said the company will open 194 new sales and service outlets nationwide this year on top of its present 1,250.