Motorcycle sales gain traction after slow year

MOTORCYCLE dealers in the capital say sales have finally started to pick up following this year’s downturn prompted by the global economic crisis, as buyers spend money generated in the provinces on upgrading to new models that have recently entered the market for 2010.

Kim Chhay, one of the many dealers who operate on Phnom Penh’s Sihanouk Boulevard, told the Post that sales had risen between 10 and 20 percent since October “due to demand for new models” of brands including Honda, which he said had recently launched its 2010 range.

Having seen sales plummet from around 100 units a month to between 30 to 40 during the first 10 months of 2009, he said sales have climbed. “Now we’re selling around 60 motorbikes per month.”...

A reduction in retail prices had also spurred demand, he said. Last year’s Honda Dreams sold for US$1,700 to $1,800 per unit, compared with about $1,500 for the new series.

Taing Ang, another dealer in the capital, said that people from the provinces who had completed land transactions were propping up demand, adding that Honda in particular had seen an upswing in sales.

“The Suzuki series hasn’t seen an improvement yet,” he said.

Vouch Lay, who deals Suzukis, said she had not seen sales pick up, blaming the rising demand for Honda’s newly released models. “I don’t see any recovery yet,” she said.

She added that Suzuki was due to begin a new promotion shortly, which she hoped would “spur the number of sales to improve on the current situation”.

Demand for motorcycles in Cambodia was expected to fall to 100,000 units this year from the previous 140,000 units, according to Matoba Micifumi, managing director of Yamaha Motors Cambodia Co, who previously said Yamaha motorcycle sales had dropped 25 percent in the first quarter. (Sourced by Phnom Penh Post Site)