With Thailand already being the biggest motorcycle producer, will Ducati make it bigger?
Thailand is poised to become a dominant force in the global bike export arena, with recent developments signalling a significant shift in the industry’s landscape. Spearheading this transformation is the inauguration of a state-of-the-art Ducati factory in Rayong, Thailand, underscoring the nation’s ascent as a powerhouse for high-performance motorcycle production.
The burgeoning Thai market boasts an impressive annual production of over 200,000 big bikes, each boasting an engine capacity exceeding 400cc. As of 2023, Thailand’s motorcycle manufacturing output reached a staggering 2.12 million units, showcasing the country’s prowess in catering to both domestic and international demand.
Moreover, on 19 April 2024, in the vibrant city of Bangkok, Thailand, Ducati Motor Holding, the esteemed Italian marque renowned for its premium motorcycles, unveiled its ambitious plans to establish Thailand as a pivotal export hub.
With an investment of 400 million baht (roughly RM51.5 million), Ducati’s new facility in Rayong is set to roll out 10,000 motorcycles annually during its initial phase, laying the foundation for a robust export infrastructure.
Claudio Domenicali, the CEO of Ducati, also expressed unwavering confidence in Thailand’s potential as a strategic export base, citing the nation’s burgeoning market for big bikes. Under the auspices of Ducati Motor Thailand, the Rayong plant is equipped to manufacture every model in the brand’s illustrious lineup, ensuring adherence to the highest quality standards.
On top of that, the expansion into Thailand marks a strategic pivot for Ducati, with a concerted focus on tapping into the dynamic Asia-Pacific markets. While traditional strongholds like Italy, Germany, the UK, and the US remain pivotal, shifting market dynamics have prompted Ducati to recalibrate its global strategy.
Despite a slowdown in demand from China, Ducati remains steadfast in its commitment to adapt to evolving market conditions. As Ducati refrains from setting explicit sales targets for 2024, Mr. Domenicali emphasises a nuanced approach, tethered to demand dynamics and prevailing market sentiments.
What’s more, in 2023, Ducati delivered an impressive 58,000 motorcycles worldwide, a testament to its unwavering commitment to excellence and customer satisfaction. In essence, Ducati’s strategic investment in Thailand underscores the nation’s emergence as a formidable force in the global motorcycle industry.
With a blend of cutting-edge manufacturing capabilities and a burgeoning market appetite, Thailand is poised to redefine the contours of the bike export landscape, with Ducati leading the vanguard of this transformative journey.
