Bangkok: Thai Honda is optimistic that the "Half-Half" scheme will bolster purchasing power and promote the use of local content in motorcycle production.
According to Thai News Agency, Thai Honda has noted that declining farm income is affecting sales; however, they remain confident that the "Half-Half" initiative will enhance purchasing power and encourage the ongoing use of local materials. The company also asserts that tariffs have not influenced motorcycle and engine exports.
Mr. Hayato Seguchi, Vice President of Thai Honda Co., Ltd., disclosed that the overall motorcycle market encompasses 1.68-1.72 million units annually. For the current year, Thai Honda aims to sell 1.35 million units, mirroring last year's target. Despite the US reciprocal tariff, Thai Honda reports no significant impact on motorcycle and multi-purpose engine exports, though continued monitoring is necessary. The primary challenge, however, remains the reduced income of farmers.
Mr. Samphan Kwanchai, General Manager of the Thai Honda Motorcycle Assembly Plant, expressed concerns about uncertainties in the latter half of 2025 due to persistent risk factors from the year's first half. Nonetheless, he anticipates positive developments from the government's economic stimulus measures, particularly the "Half-Half Plus" program, set to commence in October. He believes these initiatives will invigorate consumption, boost purchasing power, and lead to a more dynamic market.
An additional favorable development is the easing of motorcycle leasing loans in the financial market compared to the previous year. In late 2024, finance companies faced high non-performing loans (NPLs), but discussions with finance companies and dealers suggest a more relaxed approach this year. Consumers are now more familiar with the new regulations requiring a down payment on motorcycles, contributing to a more optimistic market outlook.
Ms. Savitri Kaewpuangngam, Executive Director of Thai Honda Co., Ltd., highlighted the government's policy of promoting domestically produced raw materials. She mentioned that Thai Honda consistently uses locally produced parts in its motorcycles, averaging 82% local content, with some models reaching up to 90%. She emphasized plans to further increase local content usage, with a focus on maintaining quality.