Philippine Motorcycle Industry

Providing Filipinos Mobility Using Environment-friendly Technology

by Rene M. Gener
President, MDPPA

22 June 2010,
DENR, Quezon City

Contents

The Motorcycle Industry

Motorcycle Technology

Value Chain
Performance of the Industry
Industry Linkages

Programs in Support of the Clean Air Act

The Motorcycle Industry

Government Vehicle Assembly Program

Motor Vehicle
Development Program

Classification I

Classification III

Passenger Cars

Motorcycles

Classification II

Classification IV

Commercial Vehicles

Other Vehicle Assembly

Parts Development
Program

Motorcycle Manufacturing Value Chain

3rd Tier

Core activities

OEM / OVM

2nd Tier

Raw Material Supplier

1st Tier

Supporting industries

Motorcycle Manufacturing Value Chain

Universities/Training
Institutions/Research
Centers

Industry
Associations/
Chambers
Logistics/
Shipping
firms

Foreign/
Domestic
Suppliers

Raw Material
Supplier

3rd Tier

Logistics/
Shipping
firms

Core activities

Dealers

1st Tier

Supporting industries

Technology/ Equipment
Suppliers

ASEAN
Market

OEM / OVM

2nd Tier

Domestic
Market

Marketing
Arms
Professional/
Manufacturing/
Financial Services

After
market

Other
Markets

Historical Sales and Demand Forecasts

Total Philippines demand expected to reach
0.941 M units by year 2013

1,200,000

941

900,000

MDPPA Target - 1.2M units by 750

2015
682
631units by 2020
BOI Target595
4.0M

600,000

553

518

493

840

410

300,000
20.24%

5.07%

6.76%

7.59%

6.05%

8.08%

9.97%

12.00%

12.02%

0
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

MDPPA Estimated Target Sales

MC Population: Four-Year Motorcycle Registration

3500000
3000000
2500000
2000000
1500000
1000000
500000

4x

3.20M

2.98M

2.65M

2.41M

792K

751K

3.2M riders
750K car owners
762K

780K

0
2006
1

2007
2

2008
3

Year

Source: LTO
Motorcycles

Cars

2009
4

Motorcycle Industry Profile

Contribution to GDP* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 10%
Number of Players (firms)
Assemblers (BOI Registered). . . . . . . . . . . . . . .
27
Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Parts suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . 357
Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

Capitalization (Pesos) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.95 B

Investment in Assembly Plant (Pesos) . . . . . . . . . . . . . . . . . . . . 5.50 B
Dealers/Suppliers Shops (branches) . . . . . . . . . . . . . . . . . . . . . . 1,475
Employment Generation (Households) . . . . . . . . . . . . . . . . . . . 31,025
(Persons) . . . . . . . . . . . . . . . . . . . . . . . 124,100
Assemblers (BOI Registered) . . . . . . . . . . . . .
Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*PACCI report on Deloitte Study

4,300
22,125
3,500
1,100

Motorcycle Industry Profile

Contribution to Govt. Revenue Generation (Pesos) . . . . . . . . . . . . . . . 2.5 B
Individual Income Tax Payment . . . . . . . . . . . . . 618.44 M
Taxes and Duties Paid on Imports . . . . . . . . . . . 488.42 M
VAT payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00 M
Registration / Documentation Fees Paid . . . . . 717.44 M
(CP, CSR, MVCC, OR/CR)

Potential for exports

Some members are now exporting parts to other countries
Honda (luggage carrier)
Kawasaki (CBU)

High Value and Innovative Industry

Motorcycle industry is more resilient than the four wheel sector

High localization of parts (more than 60% of parts produced locally)

Contributes to Transfer of technology

Skills in metalworks, plastic injection, welding, automotive painting, engine

assembly

*PACCI report on Deloitte Study

The Motorcycle Technology

Motor Vehicle Manufacturing Technology Linkages

Iron & Steel
Industry

Metal Automotive Parts Producers

Transmission

Wiring Harness

Alloy Wheels

Foundry

Auto batteries

Stamped parts

Radiators

Forging

Brake Parts

Exhaust pipes

Coil springs

Metal casting

Flywheel

Grab handle

Nuts & Bolts

Assemblers

Tool & Die

Rubber
Sector
Injection

Rubber Automotive Parts Producers

Tires

Various hoses

Gaskets

Mouldings

Rubber pipes

Dealers/
Distributors

Bushings

Foot stand

Molding

Petrochem
Industry
Injection/Molding

Plastic Automotive Parts Producers

Frame Covers/ Trims
Trims

Lamps

U-box

Side mirror clips

Cowling

Seat Assy

Vacuum Forming

Chemical
Industry

Chemical and Allied Autoparts Producers

Paints

Sealants

Anti-rust
agents

Inks

Consumers

Two-stroke Engine

Four-stroke Engine

Electronic Fuel Injection (EFI) engines

Fuel-friendly
&

Environment-friendly

Other motive powered motorcycles

Hybrid

Petrol-electric
LPG-electric
CNG-electric

Electric (Lithium-ion
batteries)

Other sources

Hydrogen cell

SUMMARY (ENFORCEMENT SCHEDULE)

2012

1. UN-ECER 75 Tires
2. UN-ECER 40 Exhaust Emission ( Euro 2 )
3. UN-ECER 41 Noise (Series 01)

2014

1. UN-ECER 39 Speed meter

2. UN-ECER 60 Tell Tale
3. UN-ECER 28 Audible Warning

2015

1. UN-ECER 81 Mirror
2. UN-ECER 03 Reflector
3. UN-ECER 37 Bulb
4. UN-ECER 113 Headlamp (Symmetrical)
5. UN-ECER 112 Headlamps (Asymmetrical)
6. UN-ECER 50 Lighting
7. UN-ECER 53 Lighting Installation
8. UN-ECER 78 Brake
9. UN-ECER 10 EMC
10. UN-ECER 40 Exhaust Emission (Euro-3)
11. UN-ECER 41 Noise (Series 03)

2017

1. UN-ECER 62 Anti-theft

Currently, UN/ECE R 40-1

Emission standard

Programs in Support of the Clean Air Act

Adoption of advanced emission standard

Euro II 2012
Euro III 2015
Continuing Preventive Maintenance Training

Individual company

No. 6 of the Clean Air 10 Declaration

Training of Service Mechanics

Availability after-sales service and parts
Safety and Environment in Research & Design

Other activities

Bantay Baterya proper disposal of used batteries

Tree planting
Collaboration with other stakeholders

Thank you!