BIZ BUZZ: Two wheels gain ground
Car sales in the Philippines are beginning to sputter, and automotive industry leaders had already conceded that the long-standing goal of selling half a million vehicles this year may no longer be within reach.
But elsewhere on the road, another segment is accelerating.
Motorcycle sales in the country jumped 11.6 percent in the first quarter to 496,868 units, from 445,047 units in the same period last year, based on data from the Motorcycle Development Program Participants Association Inc. (MDPPA), whose members include Honda, Kawasaki, Suzuki and Yamaha.
Automatic motorcycles still took the lion’s share of sales during the first quarter, while motorcycles used for business and delivery services also posted significant growth, according to the industry group.
This goes to show that while higher fuel costs and economic uncertainty are starting to weigh on big-ticket purchases like cars, motorcycles appear to be benefiting from the very same pressures.
Why? MDPPA says the answer is simple: affordability and efficiency.
“As fuel prices continue to rise, motorcycles remain a viable option for Filipinos looking to manage their daily commute and expenses,” MDPPA president Erwin Estrada said.“In the months ahead, this shift is likely to become even more pronounced as riders look for reliable ways to stay mobile despite increasing costs,” he added.
So while both industries remain exposed to the same oil shock, the data suggest motorcycles may be emerging as the more practical choice for Filipinos trying to keep moving during the crisis.
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