Philippine Motorcycle Industry
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- Moris Potter
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1 Philippine Motorcycle Industry Providing Filipinos Mobility Using Environment-friendly Technology by Rene M. Gener President, MDPPA 22 June 2010, DENR, Quezon City
2 Contents The Motorcycle Industry Value Chain Performance of the Industry Motorcycle Technology Industry Linkages Programs in Support of the Clean Air Act
3 The Motorcycle Industry
4 Government Vehicle Assembly Program Motor Vehicle Development Program Classification I Passenger Cars Classification III Motorcycles Classification II Commercial Vehicles Classification IV Other Vehicle Assembly Parts Development Program
5 Motorcycle Manufacturing Value Chain Raw Material Supplier 2 nd Tier OEM / OVM 3 rd Tier 1 st Tier Core activities Supporting industries
6 Motorcycle Manufacturing Value Chain Universities/Training Institutions/Research Centers Industry Associations/ Chambers Foreign/ Domestic Suppliers Raw Material Supplier 2 nd Tier OEM / OVM Logistics/ Shipping firms Logistics/ Shipping firms Core activities 3 rd Tier 1 st Tier Supporting industries Dealers Marketing Arms Technology/ Equipment Suppliers Professional/ Manufacturing/ Financial Services ASEAN Market Domestic Market After market Other Markets
7 Historical Sales and Demand Forecasts 1,200,000 Total Philippines demand expected to reach M units by year , , MDPPA Target - 1.2M units by BOI Target M units by , % 5.07% 6.76% 7.59% 6.05% 8.08% 9.97% 12.00% 12.02% MDPPA Estimated Target Sales
8 MC Population: Four-Year Motorcycle Registration M 2.41M 4x 792K 751K 3.20M 2.98M 3.2M riders 750K car owners 762K 780K 0 Source: LTO Year Motorcycles Cars
9 Motorcycle Industry Profile Contribution to GDP* % Number of Players (firms) Assemblers (BOI Registered) Dealers ,500 Parts suppliers Logistics Capitalization (Pesos) B Investment in Assembly Plant (Pesos) B Dealers/Suppliers Shops (branches) ,475 Employment Generation (Households) ,025 (Persons) ,100 Assemblers (BOI Registered) ,300 Dealers ,125 Suppliers ,500 Logistics ,100 *PACCI report on Deloitte Study
10 Motorcycle Industry Profile Contribution to Govt. Revenue Generation (Pesos) B Individual Income Tax Payment M Taxes and Duties Paid on Imports M VAT payment M Registration / Documentation Fees Paid M (CP, CSR, MVCC, OR/CR) Potential for exports Some members are now exporting parts to other countries Honda (luggage carrier) Kawasaki (CBU) High Value and Innovative Industry Motorcycle industry is more resilient than the four wheel sector High localization of parts (more than 60% of parts produced locally) Contributes to Transfer of technology Skills in metalworks, plastic injection, welding, automotive painting, engine assembly *PACCI report on Deloitte Study
11 The Motorcycle Technology
12 Motor Vehicle Manufacturing Technology Linkages Iron & Steel Industry Foundry Forging Metal casting Tool & Die Rubber Sector Injection Molding Metal Automotive Parts Producers Transmission Wiring Harness Alloy Wheels Auto batteries Stamped parts Radiators Brake Parts Exhaust pipes Coil springs Flywheel Grab handle Nuts & Bolts Rubber Automotive Parts Producers Tires Various hoses Mouldings Bushings Gaskets Rubber pipes Foot stand Assemblers Dealers/ Distributors Petrochem Industry Injection/Molding Vacuum Forming Plastic Automotive Parts Producers Frame Covers/ Trims Lamps Side mirror clips Trims U-box Cowling Seat Assy Consumers Chemical Industry Chemical and Allied Autoparts Producers Paints Sealants Anti-rust agents Inks
13 Two-stroke Engine
14 Four-stroke Engine
15 Electronic Fuel Injection (EFI) engines Fuel-friendly & Environment-friendly
16 Other motive powered motorcycles Hybrid Petrol-electric LPG-electric CNG-electric Electric (Lithium-ion batteries) Other sources Hydrogen cell
17 SUMMARY (ENFORCEMENT SCHEDULE) UN-ECER 75 Tires 2. UN-ECER 40 Exhaust Emission ( Euro 2 ) 3. UN-ECER 41 Noise (Series 01) 1. UN-ECER 39 Speed meter 2. UN-ECER 60 Tell Tale 3. UN-ECER 28 Audible Warning 1. UN-ECER 81 Mirror 2. UN-ECER 03 Reflector 3. UN-ECER 37 Bulb 4. UN-ECER 113 Headlamp (Symmetrical) 5. UN-ECER 112 Headlamps (Asymmetrical) 6. UN-ECER 50 Lighting 7. UN-ECER 53 Lighting Installation 8. UN-ECER 78 Brake 9. UN-ECER 10 EMC 10. UN-ECER 40 Exhaust Emission (Euro-3) 11. UN-ECER 41 Noise (Series 03) 1. UN-ECER 62 Anti-theft Currently, UN/ECE R 40-1 Emission standard
18 Programs in Support of the Clean Air Act Adoption of advanced emission standard Euro II 2012 Euro III 2015 Continuing Preventive Maintenance Training No. 6 of the Clean Air 10 Declaration Individual company Training of Service Mechanics Availability after-sales service and parts Safety and Environment in Research & Design Other activities Bantay Baterya proper disposal of used batteries Tree planting Collaboration with other stakeholders
19 Thank you!
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