ARAI
HONDA Philippines Inc. (HPI), manufacturer of the number one motorcycle brand in the country, will lobby for government incentives to consider local manufacturing of electric motorcycles.
But Honda Philippines finds it more cost-efficient, for now, to just import its newly- launched em1:e, its first electric scooter to be introduced in the country.
The vehicle, imported from China, enjoys zero duty under that country’s free trade agreement with Asean where the Philippines is a member-nation.
“It is good to import because if we invest in production (we will incur) higher costs. But if government laws and regulations change (to) make (it) good (to) invest (in) local production, we will consider this kind of electric model for the domestic market,” said HPI president Sayaka Arai, on the sidelines of the Honda electrification campaign launch in Taguig City last week.
Arai said in Indonesia where the em1:e is also being produced, companies which have reached a higher level of localization get incentives.
With this incentive, a local manufacturer will accelerate localization. This means more suppliers will be available locally,
Arai said the electric motorcycle industry is relatively new in the Philippines but has room to expand.
“In the future, we would like to do (some) lobbying… for the government to consider incentives for investments in domestic manufactur(ing). If the production number is high, the investment cost per unit will be low, it will be cost-competitive,” Arai said.
HPI hopes to expand production of motorcycles in Batangas and tap other markets for export.
It exports the XRM to New Zealand for a very niche market.
The Click 125, its main model which is very popular for personal transportation, accounts for more than half of total production.
In fiscal year ending last March, total production stood at 750,000 units of which over 400,000 units are Click 125.
Sales last year was about 820,000 units.
“Honda has big expectations for the Philippines. The population is increasing, the economic level is more stable than before, GDP is more than 6 percent while inflation is less than last year. The market is still growing. We will continuously make investments in motorcycles.
Honda Motor Japan will con-sider adding more lineups and attracting more customers for EV and consumer bikes,” Arai said.
