Motorcycle Industry Continues Upswing, MDPPA Achieves 21% Growth in 2018

The Motorcycle Development Program Participants Association Inc. (MDPPA), an organization of premier motorcycle brands in the Philippines, namely: Honda, Kawasaki, Suzuki and Yamaha, has recently released its final tally of motorcycle sales in 2018. The MDPPA achieves 21% annual sales growth with a total of 1,580,926 units sold last year. The total sales figures were broken down into five market segments: Underbone or Moped (MP), Backbone or Business model (BU), Scooter (AT), Street or Standard (ST) and higher displacement motorcycles over 250cc (Others).

Leading the pack in terms of sales is the scooter segment at 577,722 units. This translates to a 48% sales growth from 2017. Scooter sales has been on a phenomenal rise for the past few years as it gains popularity among repeat customers and new buyers alike. Scooters are equipped with automatic transmission. Hence, more people find it more convenient to use in daily urban traffic. It is also the likely choice of entry-level riders because of its user-friendly “twist and go” operation.

Coming in second is the Backbone model segment, having 494,842 units sold.Previously the best-performing segment, it still attained a solid 13% growth. Backbone motorcycles or business models are the workhorses of the motorcycle industry as most units are utilized for commercial purposes such as for tricycle use or food delivery duties. They are versatile and robust, offering entrepreneurs an affordable means to transport goods to customers.

While the moped segment only achieved a modest 1% growth, these motorcycles still sold steadily at 494,842 units. Mopeds are a cross between the scooter and the backbone motorcycle. They are ideal for personal commute yet still are capable of taking on heavy loads. Most mopeds are equipped with a semi-automatic transmission where the rider shifts gears without having to use a clutch while some models are fitted with manual clutch levers.

Street or Standard segment showed 15% increase having sold 69,627 units. A standard motorcycle is similar to the business model except the former is designed with performance and aesthetics in mind. It is a personal commuter that doubles as an affordable vehicle for recreational purposes as well. However, the increasing purchasing power of customers has also led to the demand for higher displacement motorcyclesover 250cc, to include big bikes. These are starting to gain popularity among those who view the motorcycle as an instrument of leisure, as opposed to seeing it merely as a tool of necessity.

With the prevailing market forces, the MDPPA expects the upward trend in motorcycle sales to continue as it forecasted a 20% increase in sales in 2019. As the motorcycle rider population grows, the MDPPA stays committed to its advocacy on road safety for the benefit of their even expanding customer base. As a member of the Federation of Asian Motorcycle Industries (FAMI) and the International Motorcycle Manufacturers Association (IMMA), the MDPPA adheres to strict international standards with regards to the quality of its products and is constantly working with relevant government agencies to help establish policies that aim to improve the lives of the motorcycle riding public.