The motorcycle sector has potential to expand manufacturing and sales operations in the Philippines due to the affinity of the Filipinos with motorcycle usage. From leisure and personal use to business needs, the motorcycle is a viable means of transport in urban and rural areas.

Compared to other Southeast Asian markets, the Philippine market is not yet saturated, providing many investment opportunities. The growing Filipino middle class sees motorcycles as efficient and cost-effective for both personal and business needs. With easy access to credit, sales potential in the country is promising.

Consumers are able to buy motorcycles at reasonable prices, with many investors specializing in semi-knocked down units. Local companies have also established technical licensing agreements with foreign brands to facilitate localization of inputs and technology transfer. At present, Japanese brands such as Honda, Kawasaki, Suzuki, Yamaha and Taiwanese brand Kymco conduct their operations in the country. Chinese brands are also gaining prominence among motorcycle users.

Development programs such as the Comprehensive Motor Vehicle Development Program have been established to promote investments, technology transfer, and industrial upgrading. Twenty eight local and foreign companies have availed of the incentives in this program through the assistance of BOI. At the same time, the Philippine Economic Zone Authority (PEZA) also provides fiscal and non-fiscal incentives, including income tax holidays from 4 to 8 years, tax and duty exemptions.

• Major players: Honda, Kawasaki, Suzuki, Yamaha, Kymco
• Products: Scooters, underbone, mopeds
• 5000+ direct employees, 30,000+ indirect employees
• PHP 2.2 Billion in revenue for 2012
• PHP 3.4 Billion in Paid-Up Capital by major companies in 2011
• 95% of sales are Complete Knock Down (CKD) parts and components
• From 756,228 registered motorcycles in 2009 to 1,140,019 registered motorcycles in 2013.