CHINESE motorcycle brand Skygo said it is poised for growth in the Philippines, as it exhibited a double digit sales growth year-on-year.
In 2014, Skygo Marketing Corpo. sold roughly 20,000 motorcycle units, according to its president and chief executive officer David Ian C. King in an interview Wednesday, adding that it will exceed last year’s sales figures.
“The motorcycle industry is positively growing,” King said.
The executive attributed this to the expanding middle class in the Philippines, who are looking for affordable modes of transportation, backed by the current state of infrastructure in the Philippines and its natural terrain.
“(Most) of our population is in the provinces, where roads are not very good yet. Motorcycles are still the main source transportation,” King said.
Aside from the macro factors that influence the industry, Skygo’s growth in particular, will be driven by their branch expansions and growing network of independent business partners (IBP) or agents.
King said the company will bring its 80 branches to a hundred this year, while it is seeking to increase its 6,000 agents to 10,000 in 2016.
Presently, 50 percent of Skygo’s sales come from walk-in buyers, while the other 50 percent is generated by agents. But King said the sales percentage may be in favor of those generated by the agents in the next years.
While motorcycles are preferred in terms of affordability, King said there is also a growing number of motorsport enthusiasts that are investing in high-end and customized motorcycles.
For Skygo, the company has come up with “concept motorcycles”, which customers can get inspiration from if they are interested to customize their own.
“Motorcycles for sports enthusiasts are growing sharply and this will dominate in the future. We’re preparing ourselves for higher-end models,” King said.
With better road conditions now, demand for scooters are also increasing, he added.
Skygo has four main motorcycle lines, namely: the Wizard, Knight, Archer, and Pony. Each line has about three variants each. Spare parts of Skygo motorcycles are manufactured in China, Vietnam, and Philippines, but are assembled in their factory in Mandaue City.
“All our models are not clones of the big competitors,” King clarified, stressing that it wants to create its own name in the industry which embodies good quality yet is 25 percent to 30 percent cheaper than their Japanese counterparts.
While the motorcycle industry is on the upswing today and projected to improve in the next years, King said it remains to be confronted by some challenges, mainly on the issue of safe driving.
“The government should support safe driving,” he said.