Kymco plans to build a P1-B factory in the Philippines
KYMCO Motocycle Philippines, Inc. plans to establish a one billion peso facility in the country to expand its current capacity to meet growing demand and enable future expansion into the electric motorcycle sector.
At a press conference in Makati City on Wednesday, Kymco Philippines President Allan B. Santiago said the company plans to build facilities in either north or south Luzon, especially in Laguna and Batangas. near the port of Batangas.
The local unit of the Taiwanese company Kwang Yang Co. Motors Ltd. plans to begin construction of the facility next year and aims to be operational in 2022 or 2023. The facility will have a monthly output of 6,000 to 20,000 units.
Having been through the period of operation in this country in the span of a decade, they have observed an economic potential chance in the Philippines and they have a firm belief that it is time for us to bring the presence and participation of the Philippines into the mix. We are pushing ourselves further with our plan to increase our investment in both the Philippine market and the Philippine workforce,” said Santiago.
Kymco Philippines’ current capacity at its 250-hectare factory in Taguig City is 5,000 units per month. Monthly sales are now more than 1,500 units. With a domestic market share of 3% to 5%, Kymco Philippines manufactures and assembles scooters, off-road vehicles and utility vehicles from 125 ccs (cc) to 500cc.
The company plans to close the Taguig factory once the new facility comes into operation.
Sooner or later, the development of technology as well as the launch of new cars would push you to facilitate new models. The production facility that we have now is perfectly suited to the Philippines. [ But] in five years, the market could be electricity. We need new facilities to manufacture and assemble these types of models,” said Santiago.
Kymco recently launched the X S 400i, Like 150i and Xtown 300i, all of which feature the Noodoe solution, an interactive and customizable digital dashboard that can connect to a smartphone for navigation.
The company also recently introduced electric scooters under the Intelligent Open Network Electric Xperience brand, although their availability depends on the establishment of charging stations and maintenance centers Tweakvip.
“Maybe in the next 12 months we will have this model,” said Santiago, adding that they are in talks with companies and a government agency about installing charging stations and other devices. maintenance facility.
Santiago said the local motorcycle market has grown by an average of 10 to 15 percent over the past three years, driven by rising middle-class incomes and increased foreign investment.
In 2016, the Association of Motorcycle Development Program participants, including Kymco Philippines; Honda Philippines, Inc.; Kawasaki Motors (Phils) Corp.; Suzuki Philippines, Inc.; Yamaha Motor Philippines, Inc. achieved sales of millions of units Metaverse technology.
Santiago predicted that the market can reach about 1.4 to 1.5 million within this year. Let’s wait and see.