Philippines Motorcycles Market is below expectations in 2024. Year to date September figures are only moderately positive, with sales at 1.67 million (+0.8%). Honda dominates the market and just launched first EVs scooters.
Moderating inflation, monetary easing, and sustained public spending particularly on major infrastructure projects, will support Philippine economic growth this year and the next, according to a report released by the Asian Development Bank (ADB).
ADB maintained its growth forecast for the Philippine economy at 6.0% for 2024 and 6.2% in 2025. The expansion in gross domestic product (GDP) will be driven by broad-based domestic demand, supported by lower inflation and interest rates, the report said.
ADB lowered its inflation forecast to 3.6% in 2024 from its April estimate of 3.8%, reflecting the sustained deceleration in food prices partly due to lower tariffs on rice imports. Inflation is expected to ease further to 3.2% in 2025 compared to the previous estimate of 3.4%.
The impact of the fast growing GDP was relevant in the recent years and actually the Philippines two-wheeler market is the fifth largest in the World and one of those with more interesting future opportunities.
Thanks to a rapidly growth, the market surged in the last decade to over 2 million annual sales and even, if the covid emergency created huge disruptions temporarily pushing the market down, the strong demand immediately moved the market back in 2021 and now the market navigate around 2.2 annual sales.
However, this year the market is below expectations and, only thanks to a Q3 3.4% increase, the year to date September figures are only moderately positive, with sales at 1.67 million (+0.8%).
One of the reasons behind the market difficulties is the EVs segment trend, well below expectations, with YTD sales down 25.7%, while the expected booming for this segment is at the base of all future market growth.
Looking at the competitive arena, the market leader in the annual data is Honda with sales up 4.5%.
In second place there is Yamaha (+5.2%) ahead of Rusi (-8.7%), Suzuki (+0.4%) and Kawasaki (+3.6%).
