The Philippines’ motorcycle industry is on an upward trajectory, with sales surging in the first quarter of the year, fueled by consumers’ growing appetite for a more affordable mode of transport as the economy maintains stable growth.
The latest data from the Federation of Asian Motorcycle Industries (FAMI) showed that motorcycle sales in the country grew to 447,865 units from January to March 2025.
This is a 10-percent increase from the 407,401 sales recorded during the same period last year.
FAMI’s data, sourced from the five member-companies of the Motorcycle Development Program Participants Association (MDPPA), also showed that domestic assembly during the first two months of 2025 jumped to 232,281 units from the 208,666 of the previous year.
MDPPA’s figures come from the local subsidiaries of four giant Japanese motorcycle brands—Honda, Kawasaki, Suzuki, and Yamaha—along with Indian brand TVS.
The group accounts for approximately 80 to 90 percent of domestic motorcycle sales and production.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the steady uptick of motorcycle sales and production in the country is consistent with the double-digit growth in consumer loans, particularly auto loans.
Ricafort told Manila Bulletin that this is despite relatively higher interest rates that have hiked borrowing costs since 2022.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that banks’ consumer loans to residents expanded by 24.4 percent year-on-year in January and 24.1 percent in February mainly due to increased credit card and motor vehicle loans.
Ricafort said there is potential monetary easing in the coming months, particularly interest rate cuts by the United States (US) Federal Reserve and the BSP, driving stronger demand for auto loans. Last week, the BSP lowered the key interest rate to 5.5 percent from 5.75 percent previously, while hinting at further rate cuts for the rest of 2025.
This is expected to further boost the country’s motorcycle sales.
“Local vehicle and motorcycle sales and production growth rates would still sustain above the GDP [gross domestic product] growth rate, as seen in recent months, and are good signals or leading indicators on the further growth and recovery of the Philippine economy,” Ricafort explained. In comparison, the government targets GDP to grow by six to eight percent this year.
As businesses recover to their pre-pandemic levels, the motorcycle industry will primarily benefit from a strengthening economy.
Based on FAMI data, the country saw a record of 1,704,898 motorcycle units sold in 2019.
Continued post-pandemic economic recovery is evident in the 1,681,482 motorcycle sales last year.
Among FAMI’s seven member-associations, Indonesia’s sales during the first two months of the year topped the list with 1,141,578 units sold.
Vietnam’s first-quarter sales stood at a distant second with 673,055, while the Philippines settled at the third place.
Ricafort said the Philippines’ favorable demographics and improving employment data in recent months are keeping the country competitive in the region.
The economist noted that the lack of mass transport systems in certain parts of the country is pushing Filipinos to purchase vehicles, with motorcycles seen as the more affordable option.
He noted that motorcycles have greater flexibility to deal with traffic congestion.
They also offer more brands and varieties to choose from amid increased competition from international manufacturers.
“Increased demand for motorcycles may also be reflected in the increasing number and demand for motorcycle taxis that offer more affordable fares and greater maneuverability to better deal with heavy traffic in key urban areas such as Metro Manila,” he added.