1-million motorcycles sold! Philippines leads ASEAN in two-wheeler boom


At a glance

  • Philippines motorcycle sales top one million units by end-August 2024.

  • Fastest sales growth in ASEAN-5.

  • Production up 5.2%, also fastest in ASEAN.

  • Indonesia still leads in sales volume due to larger population.

  • "Ghost month" fails to dampen sales; August sees 20.1% growth.

  • Strong sales reflect need for affordable transport, says SMIC economist.

  • Raises concerns about infrastructure and environment.

  • MDPPA data excludes Chinese and Taiwanese brands, understating total market.

  • Domestic production hit record high in 2023.


Motorcycle sales as of end-August zoomed past the one-million mark in the Philippines, where growth in both new units sold and domestic production is the fastest among the five original member-states of the Association of Southeast Asian Nations (ASEAN).

For Robert Dan J. Roces, economist at the Sy-led conglomerate SM Investments Corp. (SMIC), "the surging motorcycle sales in the country reflect both the resilience and challenges of Filipino commuters."

ASEAN Automotive Federation (AAF) data on Tuesday, Oct. 29, showed that Philippine sales of motorcycles and scooters from January to August of this year grew 4.9 percent to 1,094,578 units, from 1,043,501 in the same period last year.

It was the fastest end-of-August year-on-year sales expansion in ASEAN-5, outpacing Indonesia's 3.1 percent and Singapore's 2.1 percent. In contrast, motorcycle sales shrank by 10.8 percent in Thailand and skidded 6.3 percent in Malaysia during the eight-month period.

In terms of volume, however, more populated Indonesia led the way with 4,343,781 motorcycles and scooters sold in the archipelago during the first eight months, followed by Thailand's 1,163,827 units, and the Philippines' output.

In the Philippines, motorcycle sellers defied the so-called "ghost month" of August as they sold 133,688 units that month, a climb of 20.1 percent compared to sales during the same month a year ago.

Monthly motorcycle sales have sustained growth since April, reversing the year-on-year drops from January to March, AAF data showed. Motorcycles are much cheaper than cars and other four-wheeled vehicles, as well as may be easier to find space for parking.

Roces, who is an enthusiast of another two-wheeled vehicle—bicycles, told Manila Bulletin on Wednesday, Oct. 30. that strong motorcycle sales "underscores the need for affordable mobility solutions amid inadequate public transportation."

"This growth raises concerns on infrastructure readiness and environmental impact. To address these challenges, our property developments help through mixed-use developments that bring workplaces closer to residential areas, reducing commuting distances while also emphasizing the need for sustainable urban planning—from implementing green corridors and eco-friendly materials," said Roces, referring to today's typical real-estate projects being rolled out in urban areas by top developers like the SM Group.

"This holistic approach not only addresses immediate transportation needs but also promotes sustainable urban mobility while ensuring the safety and convenience of the growing motorcycle-riding community, all while working towards the country's climate action goals and creating more livable cities for future generations," Roces added.

Also, end-August Philippine motorcycle production growth of 5.2 percent year-on-year to 893,293 locally assembled units was also the fastest in the region, exceeding the 2.2-percent increase in Indonesia. Local manufacturing volumes in Thailand and Malaysia fell by 12.2 percent and 9.6 percent, respectively, during the same period.

Still, automotive assembly hubs Indonesia and Thailand, where car and motorcycle makers enjoy generous tax perks for new and expansion investments, churned out the most number of motorbikes from January to August, with 4,691,826 and 1,289,764, respectively, surpassing the Philippines as well as Malaysia's 365,876 units.

AAF data showed that Philippine production more than doubled to 115,974 motorcycles and scooters in the month of August alone, from only 57,610 a year ago.

AAF's motorcycle sales and production data come from its affiliate Federation of Asian Motorcycle Industries (FAMI), which, in turn, sources Philippine figures from the Motorcycle Development Program Participants Association (MDPPA).

According to its website, MDPPA groups the local subsidiaries of four giant Japanese motorcycle brands Honda, Kawasaki, Suzuki and Yamaha, plus their newest member—Indian brand TVS, which joined the 51-year-old industry group just last year.

This means that MDPPA figures do not reflect sales nor production of their competitor Chinese and Taiwanese brands, hence still understating the overall industry performance, as the rest of the motorcycles being sold locally are imported.

Last year, motorcycle sales in the country slightly declined to 1,556,488 units from 1,564,827 in 2022, FAMI data revealed. MDPPA did not reply to an emailed query sent by Manila Bulletin back in September, asking the industry group's growth target for 2024.

Meanwhile, domestic motorbike production jumped to a record-high 1,285,578 in 2023 from 2022's 1,003,510 units.

According to reports last year, MDPPA had an ambitious goal to sell 1.72 million motorcycles and scooters in 2023, which would have eclipsed the pre-pandemic historic-high of 1,704,898 units sold in 2019.

At the height of the COVID-19 pandemic-induced community quarantine, which limited public and private transport mobility, local motorcycle sales slid to 1,206,374 units in 2020, before recovering to 1,435,677 in 2021, historical FAMI data showed.

Domestic assembly has also been rising from 867,453 motorcycles in 2021 and a low of 631,370 in 2020, when COVID-19 struck and stopped most economic activities, including manufacturing, amid what was back then among the world's most stringent lockdowns to contain the deadly virus.

Pre-pandemic motorcycle output recorded more than a million units yearly from 2016 to 2019.