Motorcycle sales figures in the first seven months of this year have shown a considerable increase, a sign of economic recovery from the COVID-19 crisis. Higher income among farmers is a leading factor in the growing number of motorcycle purchases, while the expansion of food and parcel delivery services has also helped increase the sales.
Sales of motorcycles in Thailand from January to July this year have shown a 13.7% increase, after a 11.8% dip last year.
An analysis by province undertaken by Krungthai COMPASS, a business unit of Krungthai Bank, shows the increase in motorcycle sales is fueled by the increase in farmers’ incomes, rather than the expansion of food and parcel delivery businesses.
The analysis shows provinces with a level of motorcycle purchases higher than in the pre-pandemic period, are those with higher-value and higher-yield plantations, while motorcycle sales in Bangkok and neighboring provinces have grown at a slower rate, despite the popularity of delivery services.
Further expansion of delivery services, including in provinces beyond Bangkok, is expected to help drive up motorcycle sales in the future, complementing higher income among farmers.
The national average monthly wage for delivery riders after the deduction of costs is 15,000 baht, a level of income that should allow a rider to pay for a new motorcycle with up to a 150cc engine and automatic gears, in installments.
Several delivery platforms are also providing special loans for riders that reduce the installment amount each month. (NNT)