AP Honda, the local distribution unit of the Japanese motorcycle brand, estimates retail price tags will rise by 300-1,000 baht as the new excise tax for motorcycles comes into effect from early 2020.
The new tax regime, approved by the cabinet in May, uses CO2 emissions to calculate motorcycle excise taxes instead of engine size.
Price tags for all sizes and models, except electric bikes, are expected to rise under the new tax regime, increasing by 0.5-1%.
The new regime is modelled after a similar standard for car excise tax that took effect in early 2016.
Shigeto Kimura, AP Honda's president, said the company has yet to finalise all prices, but it expects higher prices.
"Honda is waiting for a formal announcement from the government, but an increase of 300-1,000 baht is the company's preliminary estimate," he said.
Mr Kimura said AP Honda is talking with many agencies such as the Thailand Automotive Institute regarding the preparation of an eco-sticker for motorcycles sold locally.
Each distributor has to use the stickers once the tax regime takes effect in 2020, similar to those used in the car market. The eco-sticker will outline all specifications such as CO2 emissions and fuel consumption, including the distributor's information.
"Honda expects to label the stickers from 2020," he said.
Mr Kimura said the motorcycle market fell by 2% year-on-year to 1.197 million bikes sold from January to August.
Honda posted 942,000 units sold for the period, a 2% decline.
"Overall economic sentiment remains sluggish, particularly purchasing power, which kept the motorcycle market flat in 2019," he said. "Sentiment in the fourth quarter is projected to be quite bearish."
Honda, the biggest brand by market share in Thailand, projects the total sales market outlook for the year at 1.75 million motorcycles, down 2.2% from 2018. Honda plans to sell 1.37-1.38 million units, a 1.4% drop.
Mr Kimura said Honda recorded dips in every segment: mopeds, automatic bikes and sport models. High-end motorcycles -- big bikes with engines above 400cc -- also declined and are projected to drop by 8% to 28,000 units sold in 2019.
"Honda expects to sell 11,000 big bikes this year," said Mr Kimura.
