Kymco Motorcycles has not pushed the brakes on the global expansion plans despite the Q1 2019 figures declined 10% hit by Taiwanese market fall. Outstanding performance were reported in Germany, France, Colombia and Spain. The company just announced the plan to open a new production facility in the Philippines.
First Quarter 2019 Figures
The start of the 2019 was almost negative for Kymco, which is reported down 10% from the correspondent period last year. Sales are penalized by the 19.6% lost in Taiwan while in almost all other markets figures are positive, a part Italy (-1.5%). The Q1 performance must be mentioned in the case of Germany (+31.6%), France (+29.6%), Colombia (+25%) and Spain (+22.6%).
New facilities in the Philippines
In a press briefing in Makati City on early April, KYMCO Philippines president Allan Santiago announced the company decision to invest near 20 million US dollar to build a new facility in the Philippines. The plan is to start-up the operations in the 2023, when forecast for a relevant demand for a new type of two-wheeler models, mainly electric fueled, is huge.
Indeed the Philippines are among the fastest growing markets in the World and the introduction of new rules to limit the pollution will dramatically transform the industry in few years. The Kymco plant will have a capacity of 6,000 units per month replacing the current old facility, located at the Sta. Maria Industrial Estate in Bagumbayan, Taguig City which has a capacity of 5,000 units per month and “old” technologies.
KYMCO is the abbreviation and a global brand under Kwang Yang Motor Company, headquartered in Kaohsiung, Taiwan, with about 3.000 employees, and producing more than 600,000 vehicles per year.
The company has established several production facilities abroad. They are located in Indonesia (Jakarta), Malaysia (Petaling Java), China (Shanghai, Chengdu and Changsha) and Philippines (Bagumbayan, Taguig City).
Founded in 1964, KYMCO originally started out with technology transfer from Honda, Japan. With the technical know-how from Honda, KYMCO became one of Honda’s high quality overseas manufacturing facilities.
As the relationship developed over the next two decades, Honda increased its business interest in Kymco and became a significant shareholder of Kymco. However, the marriage ended in the 2000, when Kymco started to move on its own feet.
Kymco celebrated its 50-year anniversary in 2014 hitting the milestone of 10 million scooters, motorcycles, e-bikes, side-by-sides and ATVs sold in 100 countries, with an annual sales revenue exceeding (US)$ 1 billion.
Model Line up
Kymco is a specialist of 125-250 cc scooters, while offering a large line up including below 50 cc moped and a – short – range of street motorcycles. In our Database we have collected over 200 different model/version on sales for Kymco around the World, basically due to the decision to customize their model’s name country by country rather than using global nameplates.
The most sold single nameplate in the World actually is the Many 125, which will exceed the 56.000 units sold in the 2018.
Kymco is also global leader in electric scooter sales and in the Q3 2018 announced the launch of two new groundbreaking electric scooter models and demonstrated the company’s commitment to making electric a popular reality for consumers worldwide. The beautiful retro-styled KYMCO New Many 110 EV scooter is designed for the younger generation while the KYMCO Nice 100 EV aims to attract a wider audience of electric converts.
Leader in the domestic market, nowadays Kymco distributes in all continents, exporting more the 50% of the production, with subsidiaries or importers in Argentina, Brazil, United States, Canada, Colombia, China, Japan, Malaysia, Philippines, Vietnam, Egypt, Iran and Europe.
Following the all time record sales scored in the previous year with near 0.7 million vehicles globally sold, in the 2018 Kymco was penalized by the decline of the domestic market losing 20% and ending the year with 550.000 sales.
In Taiwan, where Kymco is market leader for the 18th consecutive year, sales fell 33% at 302.000, losing over 150k which has been marginally compensated by a positive performance in the foreign markets.
The second market actually are the Philippines with over 150.0000 sales in 2018 and the third is Italy, with 24.929 sales.
Investment in India
In order to enter the Indian market, Kymco has taken the decision to utilize a local partner, a recent start-up in the electric scooter segment, Twenty Two Motors, investing $65 million to acquire stakes for over 25% and t support technological development for setting up of new plant, product portfolio and localization of batteries over the next three years.
Twenty Two Motors was co-founded by Parveen Kharb and Vijay Chandrawat will continue to own majority stake in the company. They started up in 2016 with aiming to offering affordable electric two wheelers in the country. With this partnership both partners are aiming to come out with premium scooters, which are yet accessible.
Allen Ko, Chairman of Kymco is non-committal on the stake position to ET, but adds Twenty Two Motors the company has found a right partner who shares the same vision.
To kick-start the retail venture, both the partners have decided to open experience stores by Twenty Two KYMCO in the major cities of New Delhi Gurgaon, Jaipur, Hyderabad, Pune and Bangalore soon afterwards.
The first scooter from the partnership is likely to come up by mid-2019. With this partnership, FLOW – the smart electric scooter by Twenty Two Motors will be equipped with the advanced Ionex technology developed by Kymco. Apart from launching electric two wheelers, the partnership also aims to set up the entire ecosystem in place to address the range anxiety and charging infrastructure issues with its Ionex platform.
To received Kymco sales figures, by year/market/model, please contact us.