AP Honda, the local distributor of Honda motorcycles, is optimistic about its sales prospects this year amid improving overall sentiment.
The company has set a sales target of 1.38 million units this year, signalling growth of 0.7%. It forecasts the overall market will reach 1.75 million units sold, up 0.6% from 2016.
President Yoichi Mizutani said 2016 saw a market recovery as motorcycle sales rose by 4% after three years of contraction.
Honda reported that its motorcycle sales rose by 1% last year, marking an increase for the first time in two years.
Honda motorcycles remained the top sellers for the 28th consecutive year in 2016, enjoying a market share of 78.7%.
"Overall motorcycle sales remain bearish, but we've seen positive signs that have prompted AP Honda to stimulate the motorcycle market this year, with new, attractive models equipped with higher technology that are more eco-friendly, because Thai riders' behaviour has changed," said Mr Mizutani.
Thailand's motorcycle sales surpassed 2 million for the first time in 2011, hitting 2.01 million.
Sales hit a record high of 2.13 million units in 2012 before dropping to 2 million in 2013.
In 2014, the market fell by 15% to 1.7 million amid political turmoil and payment delays to farmers under the rice-pledging scheme, before dropping again to 1.68 million in 2015.
AP Honda's all-time sales high was 1.49 million motorcycles in 2013, due to momentum from the establishment of a minimum daily wage. But Honda sales fell to 1.36 million in 2014 and 1.35 million in 2015.
Meanwhile, AP Honda yesterday announced a three-year business plan for 2017-19, aiming to introduce 19 new motorcycles during the period, including its first electric motorcycles in the Thai market.
AP Honda declined to offer further details on the electric motorcycles as the idea is still under review.
"Honda aims to provide new models to serve not only niche markets but also a diversity of demand, because Thailand's motorcycle market is becoming mature, like in Japan and Taiwan," said vice-president Suchart Arunsaengroj. "We forecast Thais' annual income will increase from $7,000 (246,400 baht) in 2016 to $10,000 by 2030, so motorcycle trends must change to reflect that."
