Motorcycle production country Thailand: Ducatis now also from Thailand?

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Motorcycle production country Thailand: Ducatis now also from Thailand?
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Motorcycle production country Thailand: Ducatis now also from Thailand?

Thailand is the number 5 motorcycle manufacturing country
Ducatis are now also coming from Thailand?

Ducatis are also produced in Thailand. There were 8,500 bikes in 2019. The motorcycles for the European market continue to come from Bologna.


Thomas Schmieder

04.09.2020

It said in MOTORRAD 19/2020: Many major international motorcycle brands produce in Thailand. Triumph, for example, produces practically the entire range of models in its own Thai plants; only the Speed ​​Triple 1050, the Tiger 1200 models and the TFC tuning bikes continue to come from good old England, where research and development are also based. The news that Ducati also has a plant in Thailand with an annual production capacity of 20,000 units made people sit up and take notice. So our classy Ducatis don’t come from Italy at all?

Ducatis for Europe come from Bologna

But! Because Ducati Germany has declared: “All of Europe, like Japan and the USA, is supplied from Bologna and not from Thailand.” Still be “All models are made in Thailand, with the exception of the high-performance Panigale V4R and limited series such as the Superleggera V4.” The countries of destination for the Thai Ducatis are the Asian markets of China, India and the ASEAN countries, i.e. Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Cambodia, Laos, Myanmar and Brunei.

In 2019 Ducati produced around 8,500 machines entirely in Thailand. As a location for the production of motorized two-wheelers, the country now ranks fifth worldwide! Only India, China, Indonesia and Vietnam have larger production volumes – in that descending order. Like all motorcycle manufacturers, Ducati benefits from low wages, tax advantages and Thailand’s participation in the ASEAN free trade agreement: exports within this free trade area are duty-free. In addition, the production in Thailand also allows access to free trade agreements with China or India.

2017 2018
Production capacity 3,560.00 3,660.00
Actual production 2,055,193 2,063,076
Of which from delivered kits (CKD *) 480,723 515.085
“Completely” made in Thailand 1,574,470 1,547,991
Cubic capacity up to 150 cm³ in total 1,578,526 1,666,718
Displacement over 150 cm³ in total 476,667 396.358
Total sales in Thailand 1,810,771 1,788,323
Motorcycles for export 244,422 274.753
*: Completely Knocked Down Units; Sources: Krungsri Research, Automotive Industry Club of the Federation of Thai Industries (modified)

“Heavy motorcycles” also builds BMW in Thailand. In 2018 this was 3,077 units for Asian markets. Harley-Davidson manufactures all Softails and Touring models for the European market in the Far East, not the USA. By manufacturing in Rayong, around 60 kilometers southeast of Bangkok, Harley-Davidson avoids punitive European Union tariffs on US products. Otherwise, if they were manufactured in the USA and imported into Europe, they would cost around 2,000 euros for every single Harley. The punitive tariffs are a reaction to the trade war with the EU instigated by US President Donald Trump.

More Japanese bikes from Thailand than from Japan

All four Japanese brands also manufacture in Thailand. Together they have enormous production capacities there: market leader Honda with 1.7 million motorized two-wheelers, Yamaha with 600,000 units, Suzuki with 550,000 machines and Kawasaki with 260,000. The four large Japanese manufacturers combine 85 percent of the Thai production capacities of a good 3.6 million machines. Together, the Japanese manufacturers produce more motorcycles in Thailand than at home in Japan.

A total of 15 brands produce a wide range of motorcycles in Thailand. The country also has around 330 suppliers of motorcycle components. Its 70 million inhabitants have a total of 21 million registered scooters / motorcycles and 18 million cars. ascending trend.

Conclusion

With their production in Thailand, motorcycle manufacturers benefit from lower wages compared to Europe, the USA or Japan. The ASEAN free trade agreement is an understandable reason to produce motorcycles in Thailand. As long as the quality is right.

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