Growth in the production volume of the domestic motorcycle manufacturing sector in 2009 has decelerated to 6.6 percent from its robust double-digit 20 to 30 percent growth years before the global financial crisis.

Data from the Motorcycle Development Program Participants Association showed the industry sold 636,989 units last year from 594,871 units in 2008.

For the years 2005-2007, the sector has grown significantly selling more than 549,000 units in 2007. Before the crisis hit, the industry projected sales to hit one million in 2010 and 1.2 million units by 2012.

“The industry has all the potentials for robust growth, but players have to get their acts together and push for measures that would help their industry become more competitive,” Trade and Industry Undersecretary Elmer C. Hernandez told reporters on his way to induct the new officers of the Motorcycle Development Program Participants Association (MDPPA) on Friday.

Hernandez expressed hope that the new MDPPA would push for more active engagements with the government.
“The one taking the helm now is Honda Philippines Inc. and being the leader I hope Honda will lead the association in undertaking more productive engagements with the government,” he said.

There are 23 BOI-registered motorcycle firms but only seven are members of the MDPPA. These are the following according to their sales ranking - Honda Philippines Inc., Kawasaki Motors Philippines Corp., Suzuki Philippines, Yamaha Motors Philippines, Eastworld Motor Industries Corp., MCX Motor Philippines (China) and Kymco Philippines (Taiwan).

Among the MDPPA members, Honda accounts for 60 percent of total industry sales and is gearing up for one million sales before the global financial crisis.

Hernandez said that as early as 2008, the BoI is crafting a separate program for the motorcycle industry under the Motor Vehicle Development Program (MVDP), which is now being finalized by the BoI.

“The motorcycle sector has always been a component in the existing and previous motor vehicle development programs, but the situation for this particular sector has changed a lot that there is now a need for a separate program for this growing sector,” Hernandez said.

“The situation now is different as the growth rate of the motorcycle sector has become very significant over the past few years,” Hernandez said.

In pushing for an industry roadmap, Hernandez pointed out the very promising motorcycle industry and the need to sustain its growth and competitiveness amid the serious threat of globalization.