Honda Philippines targets 13% growth in motorcycle sales

MANILA, Philippines — Motorcycle manufacturer Honda Philippines Inc. (HPI) is aiming to post a 13 percent growth in sales this year amid strong demand for practical transport options. Jomel Jerezo, vice president at HPI told The STAR that the company expects to post higher sales this year given strong demand for motorcycles in the country. Last year, HPI sold 1.04 million units, accounting for 56 percent of total motorcycle sales in the country. “For the industry, there’s still growth. But we’re growing faster,” Jerezo said. He said the company continues to see strong demand from online delivery platforms. In addition, he said high fuel prices due to tensions in the Middle East and congested roads are helping drive demand for motorcycles as consumers look for practical transport alternatives. “Our products are fuel-efficient,” he said. “It’s an alternative that’s more affordable and more practical,” he added. He said HPI sees opportunity for continued growth in the country given the low percentage of female motorcycle riders at around 20 percent. “It’s a big opportunity to expand. The possession ratio is low compared to other countries,” he said. The company also sees opportunity in the Gen Z market. As part of its aim to engage with the younger market, HPI partnered with Dunkin Donuts’ Philippine franchisee Golden Donuts Inc. Under the partnership, customers who purchase any variant of the Honda NAVi from participating Honda Exclusive Shops nationwide will receive a Dunkin’ product voucher for an exclusive Honda x Dunkin’ box of eight donuts. Based on current projections, Jerezo said HPI expects continued growth in motorcycle sales in the country until 2030. “The outlook is very positive in the Philippines. For global Honda, one of their major priorities is the Philippines,” he said. HPI is currently expanding its manufacturing facility in Batangas to raise its annual capacity to around one million motorcycle units in the current fiscal year from 800,000 units. While HPI started exports of Click125 motorcycles to Cambodia and Laos last May, he said the manufacturing facility’s focus is to cater to demand in the local market. He also said HPI has no plans for now to locally manufacture electric vehicles (EV) given a low penetration rate of less than five percent. “The key there is the partnership with the government to become successful in the EV penetration similar to China and Vietnam,” Jerezo said.