Kymco Philippines Inc. wants to build a P1-billion facility to make more motorcycles and other products, betting on the local demand despite selling fewer units than expected.
Company president Allan Santiago said in a press briefing on Wednesday the firm’s future facility would replace its 2.5-hectare plant in Taguig City, which assembles all its products, such as motorcycles and all-terrain vehicles.
The expansion, aimed for completion in 2023, will be located in an area twice the size of the current plant and with a minimum production capacity of 6,000 units. Santiago said they were still scouting for a location either in North or South Luzon.
Kymco, the wholly owned subsidiary of Taiwan-based Kwang Yang Motor Co. Ltd., has no plans yet to export despite the overcapacity. The company sells around 1,500 of its products every month, way below the 5,000-capacity.
“We used to sell more than that but because of the stiff competition in the market and because of our desire to change our strategy into a more profitable one, we decided to create products that will address more quality sales on our side,” he said. Kymco has a 3-5-percent share in the motorcycle market.