Motorcycle industry in Thailand
Motorcycle industry in Thailand

Motorcycle industry in Thailand

Available Only on StudyHippo
  • Pages: 18 (9248 words)
  • Published: October 6, 2017
Text preview

Executive Summary
Thai bike industry entered in Thailand since 1964. There are four chief participants in this industry including Honda. Yamaha. Kawasaki. and Suzuki. Even there are non much rivals but the competition among them are ferocious. Tai market for bike is in adulthood phase. This makes the participants have to utilize strong schemes to possess market portion. The dominant participant in this industry is Honda For client analysis. among four leader participants they rather focus client similar group. It might be because nature of merchandise is suited to certain group of people. However. they try to distinguish by focal point niche group with new life style. The common mark group is teenager to working age. This consequence in the manner they communicate to each mark group. As bike is merchandise that are high value so the degree of consumer engagement determination are high as good. Peoples try to analyze what advantages and disadvantage of each theoretical account in each trade name. Nevertheless. point of purchase in the sale point pays of import function. As we can see from the retail show room. publicities wide are really attractive and different among the stores.

Therefore. clients can non do determination from their place. Dealer in show room encourage clients to see the store to run into direct sale individual for the information. For competitory analysis. the participants are maintaining develop themselves peculiarly many schemes. Honda has the most capacity and gross revenues while other rivals besides grow continuously. They have different strength points. For illustration. Honda is

...

the first Fuel injection system applied while Yamaha is 1st produced automatic type of bike and 1st produced Eco Motorcycle. For future tendencies. in short term. it will non much alteration in place of leader but they will seek to concentrate mark client narrowly and otherwise. For long clip Thai market might worsen. However. sale will travel invariably but non leap high because people will purchase new bike when they want to replace the old 1. Motorcycle Industry

Motorcycle industry in Thailand is turning dramatically. It is because proper geographical and economic construction. Particularly geographic. Thailand has a popular over 65 million people. The countries are level for the most portion. For some rural country it is much better to utilize bike and in the large metropolis with heavy traffic jam bikes have become the most convenient vehicle for speedy travel. Thai bikes industry was monopolized by the Nipponese four
trade names are Yamaha. Honda. Kawasaki. and Suzuki. History

First phase: Import parts for assembly ( 1964-1977 ) – CKD phase

In 1964 Board of Investment ( BOI ) got a policy to advance bring forthing bikes in Thailand to replace imports. In 1966 Siam Yamaha Co. . Ltd is the first company which established bike assembly mill. Thai Honda Manufacturing Co. Ltd began to run as the 2nd mill in following twelvemonth. Then in 1968 Thai Suzuki motor Co. . Ltd was 3rd bike maker in Thailand. Subsequently in 1971 the market was sulky including increasing the figure of import used bike. Therefore. the authorities announced the policy to forbid import used bike. In the same twelvemonth.

View entire sample
Join StudyHippo to see entire essay
View entire sample
Join StudyHippo to see entire essay

the authorities got the first bike industry policy. The important issue is the assembly bike maker have to utilize parts from domestic 50 per centum of all parts within 2 twelvemonth since the proclaimed day of the month ( 3 November 1971 ) to be competitory and suspension set up bike workss within 5 old ages from proclaimed day of the month ( 3 November 1971 ) to carry through economic system of graduated table. Until the terminal of the proclamation in 1976 Thai Kawasaki Motor Co. . Ltd established as the Forth assembly works. In 1977. the authorities required the bing bike manufacturer usage at least 70 percent local parts within 2 old ages. As for expand and new mill must utilize parts from local at least 70 per centum since start the operation. Furthermore. Industry ministry had a policy to delegate bike workss to bring forth bike with cylinder capacity non transcending 125 milliliter to run into the demands of the market and to take advantage of economic systems of graduated table ( Economy of Scale ) every bit good.

Table 1: Detailss of the bike makers in Thailand in 1977

Honda
Suzuki
Yamaha
Kawazaki
Entire
Capacity ( unit per twelvemonth )
49. 920
87. 360
72. 000
25. 000
234. 280
Capital ( million Baht )
20
18
9
5
52
Employment ( individual )
134
304
566
100
1. 104
Beginning: Bank of Thailand






















Second phase: Began bring forthing parts in 1978-1987 – Localization

In 1978 there was a forbidden import bikes and raised import revenue enhancement to some peculiar bike from 40 per centum to 60 per centum including transit and insurance. The consequence of prohibited import and force to utilize parts inside state was the manufacturers increase their capacity. In 1980 the entire capacity was 338. 000 units per twelvemonth which higher 103. 720 units per twelvemonth from 1977. However. this policy provided manufacturers with higher production costs because of non proper economic system of graduated table and quality of parts in non criterion. As the manufacturers can take types of portion as they want so parts did non better and late improve. Therefore in 1984 the authorities allowed operators to utilize such parts bit by bit until 70 per centum of the entire value of the constituent in January 1986. In 1984 the authorities collected particular revenue enhancement for bike that import in particular instance 20 per centum of responsibility to be paid. It increased from the original import revenue enhancement 60 per centum of monetary value and increased import responsibility from 30 per centum to 40 per centum.

As for advancing the production of parts in the state. authorities ordinances require that makers of bike must utilize exhaust systems following industry criterion. They besides allowed merely mills that are promoted by Board of Investment ( BOI ) can spread out a fabrication works or permission to set up a mill to bring forth engine cylinder capacity non transcending 150 milliliter. The protection of bike industry policy during this period lead to the production of bikes increased from 190. 779 units in 1978 to 310. 083 units in

View entire sample
Join StudyHippo to see entire essay