Traffic Is a Boon to Taiwan Scooter Maker's Philippine Expansion

(Bloomberg) -- Taiwan’s Kwang Yang Motor Co. Ltd. will invest 1 billion pesos ($19.3 million) in a new motorcycle plant in the Philippines where the traffic logjam is boosting demand for bikes.

KYMCO Philippines Inc.’s new plant will boost its monthly capacity to at least 6,000 motorbikes when it opens in 2023, President Allan Santiago said at a briefing in Manila. Its existing plant can produce 5,000 units a month, triple its Philippines sales of about 1,500 units. Currently, only one in 25 people in the country own a motorcycle, he said.

Highlights

• Motorbike sales in the Philippines rose 21 percent last year, Top Gear reported, citing data from the Motorcycle Development Program Participants Association.
• “The heavier the traffic, the better it is for the industry,” Santiago said, adding that motorbike sales also rise along with oil costs.
• KYMCO Philippines, which recently introduced a line of electric scooters, expects to start selling this year bikes with smart dashboards and digital navigation.
• Gridlock in the Philippines capital where there’s insufficient infrastructure to serve about 13 million people and 3 million vehicles costs the economy 3.5 billion pesos a day.

To contact the reporter on this story: Cecilia Yap in Manila at cyap19@bloomberg.net

To contact the editors responsible for this story: Stephanie Phang at sphang@bloomberg.net, Clarissa Batino

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