Thai Yamaha Motor Co, the local distributor of Yamaha motorcycles, is ramping up expansion into big bikes and marine vehicles to offset the shrinking motorcycle market.
Jintana Udomsub, Thai Yamaha's chief of commerce, shows her approval of the big bikes the company plans to feature in its move away from the shrinking motorcycle market.
"With lower motorcycle sales, we need to look at other products," said Jintana Udomsub, the company's chief of commerce.
Yamaha has sold its big bikes in the Thai market since 2011, all imported from Japan with engines ranging from 530cc to 1,300cc and prices varying from 465,000 to 950,000 baht.
The company now operates nine outlets and service centres for big bikes nationwide, dubbed Yamaha Riders' Clubs.
Ms Jintana expects sales of the company's bike bikes to rise to 1,100 units this year from 300 last year.
"Japanese big bikes are very competitive in Thailand thanks to lower import tariffs under the Japan–Thailand Economic Partnership Agreement (JTEPA)," she said.
The JTEPA cuts the 30% import tariff on big bikes and their parts by five percentage points a year until it is eliminated at the end of 2017.
Thai Yamaha forecasts healthy growth in Thailand's overall big-bike segment, with sales increasing by 12% year-on-year in the first nine months of 2014 to 12,500 bikes.
The company projects Thailand's big-bike sales with engines above 500 cc to hit 16,000 bikes this year, up from 13,300 last year.
Ms Jintana said Thai Yamaha was also revving up its expansion into marine vehicles, particularly jet skis.
Sales are estimated at 180 jet skis this year and 200 next year, driven by growing demand for sports tourism.
Ukrit Pakviwat, senior manager of marine products at Thai Yamaha, said jet skis were imported from the US, the main market for the products. Sixteen models are available in Thailand.
Thai Yamaha operates jet ski outlets in Pattaya, Phuket and Koh Samui, run by its authorised dealer Watchara Marine Co. A new outlet will be built in Nonthaburi's Sanambin Nam area next year.
Ms Jintana said Thai Yamaha forecast the country's overall motorcycle sales would drop by 12-16% to between 1.7 and 1.75 million units this year from 2 million last year.
Thai Yamaha recently cut its own sales target to 250,000 motorcycles this year from a previous forecast of 360,000 after selling 373,000 last year. The overall Thai market is expected to recover to 1.8 million motorcycles sold next year.