ASEAN 2018. Two Wheeler market at the All Time Record of 14 million sales

Asean Motorcycles

ASEAN motorcycles industry ends the 2018 with a new record volume, first time above the 14 million units and is actually representing the 31% of the Global Motorcycles Market. In the region there are four out of the top 6 markets in the World.

ASEAN Region

The Association of South Asian Nations is an economic region including countries fast growing under several indicator (populations, economy, development, social conditions and others) and actually represents one of the most interesting World economic region. It includes already developed countries like Thailand, Malaysia, Indonesia, Vietnam, Philippines, Singapore, Brunei and others very poor but in a positive track, like Myanmar, Laos, Cambodia.

Economic Environment

ASEAN economy expanded 4.9% year-on-year in the fourth quarter of 2018, which if confirmed would mark an uptick from Q3’s 4.7% expansion. Flash data for Vietnam showed that growth accelerated in Q4 and was likely the fastest among the region’s major economies. The performance was driven by strong showings in the services, industry and construction sectors, as well as by robust FDI inflows and a healthy labor market.

In contrast, the more mature economy of Singapore lost some momentum in the final quarter due to sluggish growth in the service sector, even as manufacturing growth accelerated.

The rest of the region’s major economies have yet to report national accounts figures for the final quarter, although growth was likely firm. Strong domestic demand should have driven the performance, although headwinds stemming from easing momentum in China and elevated U.S.—China trade tensions seemed to weigh on the external sector.

Market Trend

We are working intensively to aggregate data on smaller country in the region, while today we are able to report ASEAN region sales in the Motorcycles industry combining data for Thailand, Vietnam, Malaysia, Philippines, Singapore and Indonesia, which represent near 98% of regional sales.

ASEAN motorcycles industry is very relevant and represents near the 31% of the global motorcycles sales.

In the 2018 the region (data for Myanmar, Laos, Cambodia, Singapore and Brunei are – at the moment – not included) hit the record volume of 14.024.965 sales, up 4.5% from the previous year and hitting the former record of 13.9 million established in the 2013.

Only the Thai market score a step back from 2017, losing 1.2%, while all the other country shown a healthy performance. Indonesia, the largest country in the region and the third in the World, reported 6.38 million sales, up 8.4% from the previous year, while is still far from the 8 million units of record volume.

Vietnam, which is the second market in ASEAN and the fourth in the World, hit a new record volume with near 3.4 million sales, up 3.5%).

Behind there is  Thailand that – as said -felt down 1.2% at 1.78 million ahead of the still growing Philippines with sales up 9% at the record of 1.4 million and in fifth place Malaysia grew up 1.8% at 442.656 units.

Behind there are Myanmar, Laos and Cambodia, for which we have not yet consolidated data and can not report about. While the small Singapore was reported in the 2018 at 11.490 sales, up 19%.

Competitive Landscape

There are over 200 motorcycles brands on sales in the region, but the level of concentration is among the highest world-wide.

Producing locally in any country, Honda was able to deliver a record of 9.4 million units in the 2018 and is projected above the 10 million milestone in the 2019. The only real competitor is Yamaha, with 2.9 million sales in 2018, while the third, Suzuki, sold just 406.000 units last year.

In recent years several brands approached the market coming from Europe, US and India but actually no one reported a real success, having failed the approach with the local customers. 

Indeed the market is here and wherever you came, you should bear in mind that this region is not an emerging low-developed market, but is the current frontier of the industry, with the most evolved customers and a huge, modern, technologic product offer made by Japanese brands after near 50 years of local experience.

Wishing to know more on data entering in details for single country, brand or model, just contact us.

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