Modenas targets 16% of motorcycle market
Motosikal Dan Enjin Nasional Sdn Bhd (Modenas), a subsidiary of DRB-Hicom Bhd, wants to maintain its leadership position in the local motorcycle segment by increasing its market share to about 16% this year.
The company plans to sell 75,000 units amidst a slight increase in forecast total industry volume (TIV) of 465,000 units this year from 450,000 units in 2006.
Its chief executive officer Harith Abdullah said the high fuel price and more stringent car financing requirements would directly benefit the motorcycle industry as some Malaysians would resort to motorcycles for short distance commuting.
Harith said it had plans to introduce more models but this would depend on the market trend.
On possible partnerships to increase local and overseas sales, he said Modenas would continue to work closely with its principal partner and shareholder Kawasaki but was open to other alliances that gave mutual benefits.
Harith said Modenas captured some 13% of the motorcycle market last year by selling 60,000 units. He said sales were tough last year due to strong competition in the motorcycle market segment. In 2006, the motorcycle market increased by 3.7% to 450,000 units.
He expects the industry’s growth trend to continue this year despite the fact that the local motorcycle market is already near saturation point.
“The motorcycle market in Malaysia is almost reaching saturation point whereby the ratio of motorcycles to people in Malaysia is 1:4, the highest in the region,” he said.
Harith said the four-stroke moped was expected to account for 84% of the market (390,000 units), scooters 14% (65,000 units) and the rest including street bike, off-road and two-stroke for the balance 2% (9,000 units).