Thailand's motorcycle industry began in the 1960s when the Board of Investment aimed to decrease imports of motorcycles by supporting domestic production. Initially, the sector was limited to assembling imported parts within Thailand. However, after Honda opened its first production plants in the kingdom, other Japanese motorcycle manufacturers, like Yamaha, Suzuki, and Kawasaki, entered the market. Today, Thailand is a major producer of smaller motorcycles and scooters. Most of the production plants are in the central and eastern region, in close proximity to major commercial ports. Although the country mainly supplies the domestic demand for motorcycles, Thailand’s export of motorcycles is some of the highest worldwide. The most important
are countries of the European Union.
Why the majority of motorcycle riders reside in Thailand
The culture of owning a motorcycle is deeply rooted in Thailand. Motorcycles are affordable and provide an efficient mode of transportation for many Thai people. The government has implemented policies to support the domestic motorcycle manufacturing industry, which has led to the production of modestly priced motorcycles. While two-wheelers are a cost-efficient mode of transport, particularly in urban areas where traffic congestion is a common problem, poor traffic law enforcement in said areas has led to a high share of
fatalities among motorcyclists in Thailand. Another factor for its popularity is the warm climate in Thailand, which allows for year-round motorcycle use, making it a favored choice for commuting and leisure activities. Furthermore, the widespread availability of motorcycle taxis, a common form of public transportation in major cities in Thailand, has also contributed to the high number of motorcyclists in the country.
Leading brand in Thailand
Honda has been the
leading motorcycle brand in Thailand since the 1990s. Honda's success can be attributed to its early entry into the market, investment in production facilities and distribution networks, and ability to produce motorcycles that meet the specific needs of Thai consumers. The Japanese manufacturer has developed fuel-efficient and easy to maneuver motorcycles, which are popular in heavily congested areas in Bangkok and other large cities. Moreover,
Honda offers a wide range of models, appealing to different consumer groups. The company’s established presence in Thailand and the ability to adapt to changing consumer preferences have helped it maintain its position as the leading motorcycle brand in the kingdom.
The future of the Thai motorcycle industry
Despite challenges, like supply chain disruptions brought by the COVID-19 pandemic, the market is expected to continue its upward trend. This is due to the progressing
urbanization in Thailand and the motorcycle’s role as a primary mode of transportation for many people in these urban areas. Although still a niche market, the increasing popularity of electric motorcycles is expected to boost demand. While the industry may face short-term challenges, the long-term outlook remains positive. The Thai motorcycle industry is likely to remain a key player in the global motorcycle market.
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