The global market for motorcycles: India, China and ASEAN countries

　This report provides an overview of the global demand and production volumes for motorcycles, in particular for the major producers of motorcycles in India and China, as well as ASEAN countries such as Indonesia and Thailand.

　According to data published by Yamaha, the global demand for motorcycles in 2017 was positive for the first time in 4 years, increasing by 4.3% to 53.995 million units from the previous year. In 2018, demand is expected to increase by 1.2% to 54.632 million units. Sales in India, the world’s largest motorcycle market continues to increase, and despite a continuing downward trend in China, the world’s second largest market, overall sales of motorcycles in the Asian market are forecasted to be strong. In Europe, the U.S. and Japan, sales growth y/y is negative, and for other regions such as Brazil growth is expected to turn positive. (As of February 2018)

　According to statistics released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle production and sales volumes in India exceeded 20 million units in fiscal year 2017 (April 2017 to March 2018). Conversely, although production in China increased slightly y/y exceeding 15 million units in 2017, motorcycle production by Chinese manufacturers continues to decline. Domestic sales in Indonesia are sluggish, but export volumes have increased significantly. Production and sales volumes in Thailand and other ASEAN countries are steady. A compilation of the statistical data for all countries suggests that the global production volume of motorcycles is around 54 million units.

Related Reports:
The global market for motorcycles (Part 1): India accounts for one-third of the global market (Jun. 2017)
The global market for motorcycles (Part 2): Sales rise in Pakistan, Europe; fall in Brazil (Jun. 2017)

Source: Compiled from Yamaha Motor Company financial results

Source: Compiled from statistical data from the automobile and motorcycle associations of each nation.
(Note) 1. The fiscal year in India begins in April and ends in March.
2. Indonesia production volumes (domestic sales + exports) beyond 2015 have been estimated.
3. The fiscal year in Pakistan begins in July and ends in June. Three-wheeled vehicles are included.
4. Data for Europe show the total for seven nations: Austria, the Czech Republic, Germany, Spain, France, Italy, and the U.K. The figures since 2015 are provisional, as they include data for Italy and Germany only.

　In India, the world's largest motorcycle market, production and sales volumes exceeded 20 million units in FY 2017 (April 2017 to March 2018). Production volumes increased by 16.1% to 23.15 million units, and sales volumes increased by 14.8% to 20.19 million units. (Source: Society of Indian Automobile Manufacturers, SIAM)

　Production volumes by manufacturer were: Hero MotoCorp at 7.59 million units (38.1% market share), Honda’s local subsidiary Honda Motorcycle & Scooter India at 6.19 million units (31.1%), TVS Motor at 3.4 million units (17.0%), and Bajaj Auto at 3.39 million units (17.0%). The top three manufacturers achieved double-digit y/y growth rates of Hero 14.2%, Honda 22.8%, TVS 19.0%, with growth at Bajaj up 5.7%.

　In addition, production volumes increased at India Yamaha Motor (Yamaha) by 7.8% to 1.047 million units, Royal Enfield by 24.4% to 829,000 units, and Suzuki Motorcycle India (Suzuki) by 35.6% to 577,000 units.

　In India, with the social advancement of women, demand is increasing for scooters designed so that riders are able keep their legs together (rather than straddling). Between FY 2010 to FY 2017, the production and sales of scooters increased from 2 million units to 7 million units, and the proportion of scooters for the entire 2-wheeler volume has increased from more than 15% to about 30%. Honda leads the scooter market in India, launching a plant dedicated to the manufacture of scooters in Gujarat in 2016. Honda unveiled a new model of its best-selling Activa scooter at the Auto Expo 2018. In February 2018 Hero announced two new models, which will become the company’s first in the 125cc scooter segment. Hero is planning to release the two models in 2018, expanding its customer base.

　In India, demand in the premium price market segment for mid- and large-sized motorcycles is expanding. BMW has consigned production of the G310R sports model to its local partner TVS. Bajaj has formed a global alliance with Triumph of the U.K., with plans to introduce large luxury models of the Triumph brand to the Indian market.

Source: SIAM (Society of Indian Automobile Manufacturers)
Notes: Scooter: Tire size is 12 inches or less. Scooterettee are included in this category.
Motorcycle: Tire size is over 12 inches. Step-Through are included in this category.
Mopeds: Tire size is over 12 inches and engine displacement is 75 cc or under.

Source: SIAM (Society of Indian Automobile Manufacturers)
Note: Data of Hero MotoCorp Ltd.: Data until June 2011 is the production volume of Hero Honda Motors Ltd. Hero and Honda dissolved their joint venture in March 2011.

　Production volume in China, the world's second largest motorcycle market, has been declining for years falling to below 15 million units in 2016, but in 2017 saw a slight recovery to 15.09 million units.

　When production volumes are viewed by engine displacement (2016 data), the 110 to 125cc segment is the largest, but the current number of units is 50% of what it was about 10 years ago, and the production volume of the 110cc or less segment has declined considerably. Conversely, the over 125cc segment has remained basically flat, and the greater than 250cc segment has tended to trend upwards.

　Production volumes for the top 5 manufacturers were 1.76 million units (10.5% market share) for the Haojue brand of the Jiangmen Grand River Group affiliated with Suzuki, 1.13 million units (6.7%) for Loncin, 1.1 million units (6.5%) for Lifan, 1.04 million units (6.2%) for Wuyang-Honda (Honda), and Zongshen at 990,000 units (5.9%) which is part of the Zongshen Group and affiliated with Piaggio.

　In the midst of a general decrease in production volumes across all manufacturers, Honda and Yinxiang are steadily expanding market share. In addition, the emerging motorcycle manufacturer Jinyi located in Changzhou City is growing rapidly.

　China exports more than 8 million motorcycles annually, but exports are on the decline having peaked at 11.4 million units in 2011. Many of these exports are sent to ASEAN countries such as Myanmar and the Philippines. Other major export markets on the rise include North America, South America, and Africa.

Source: Chinese Automotive Industry Yearbooks and China Association of Automobile Manufacturers' website

Source: Chinese Automotive Industry Yearbooks
Note: Production data is from the top twelve companies in 2016

Source: Chinese Automotive Industry Yearbooks

　In Indonesia, motorcycle sales in 2017 decreased by 0.8% from the previous year to 5.886 million units, falling below the 6 million unit mark for the second consecutive year. Declines in resource prices, and increases in electricity costs and vehicle registration fees have led to a decline in purchase motivation.

　By manufacturer, Honda clearly dominates the market with 438.6 million units (74.5% market share), followed by Yamaha with 1.348 million units (22.9%).

　The Indonesian Motorcycle Industry Association (AISI) predicts (as of January 2017) that 2018 sales volumes will increase by 3% to about 6 million units. Reasons for the rebound in volumes include the fact that the Indonesian government said it will not raise electricity tariffs in 2018, while it also promised to postpone any increase in fuel prices, which would boost consumer purchasing power. Secondly, Indonesia's macroeconomic conditions are solid. Economic growth is expected to accelerate further, while the central bank’s policy is keeping interest rates low, so it is more affordable to obtain a loan to finance the purchase of a motorcycle.

　Manufacturers are strengthening exports due to lackluster domestic demand, with the number of exports in 2017 increasing by 53.0% to 435,000 units, representing a significant increase over the previous year. Major export destinations are ASEAN, Japan, and Europe. According to AISI, the demand for Indonesian-made motorcycles in overseas markets is up due to improving good quality and price competitiveness, with exports expected to continue to increase in 2018.

Source: Indonesian motorcycle industry association, etc.
Note: Indonesia production volumes (domestic sales + exports) beyond 2015 have been estimated.

Source: Company press releases, news reports, etc

　In Thailand, 2017 motorcycle production volumes (including CKD kits for export) increased by 9.6% from the previous year to 2.68 million units, while sales volumes increased by 4.2% to 1.81 million units.

　By manufacturer, Honda clearly dominates the market with 1.419 million units (78.4% market share), followed by Yamaha with 268,506 units (14.8%). The emerging Thai manufacturer of motorcycles, GPX, has achieved rapid sales growth in recent years, exceeding 30,000 units in 2017.

Source: The Federation of Thai Industries

Source: Department of Land Transport, Thailand

Source: Federation of Asian Motorcycle Industries, General Statistics Office of Vietnam

Source: Federation of Asian Motorcycle Industries. The data in Vietnam is from Yamaha Motor's financial result reports

------------------
Keywords
Motorcycle, India, China, Indonesia, Thailand, Vietnam, Philippines, Malaysia, ASEAN

<Automotive Industry Portal MarkLines>