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Big motorbikes new kings of the road in Southeast Asia

Roads in Southeast Asia have been getting a little louder lately as motorcycle makers, an aspiring middle class and easy bank credit come together to breed a new genus of motorcyclists - the big-bike rider.

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The Southeast Asian motorcycle market is undergoing a structural change as consumers shift to bigger bikes. Photo: Reuters
Reuters

Roads in Southeast Asia have been getting a little louder lately as motorcycle makers, an aspiring middle class and easy bank credit come together to breed a new genus of motorcyclists - the big-bike rider.

Traffic in urban centres such as Jakarta, Kuala Lumpur and Ho Chi Minh City has long been characterised by swarms of small motorcycles and scooters.

Honda Motor and Yamaha Motor, the world's biggest motorcycle makers, have dominated this sprawling regional market. But the landscape is slowly shifting as the Southeast Asian market, the world's third-largest after China and India, undergoes a structural change. In Malaysia and Vietnam, motorcycles with bigger engine capacities are outselling their smaller cousins.

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Italy's Ducati Motor Holding, Japan's Kawasaki and Austria's KTM are among those looking to build a new axis of growth in this market of 600 million.

Harley-Davidson plans to roll out a new entry-level motorcycle, the Street 750, in Southeast Asia early next year. The 749cc model has been a hit in India, with sales accounting for 60 per cent of the company's domestic revenue two months after its launch in February. The vehicle costs 410,000 rupees (HK$51,600).

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"We are optimistic about the Southeast Asian premium leisure motorcycle market," said Marc McAllister, a vice-president and managing director of Harley-Davidson Asia-Pacific. "The motorcycle is perfectly suited to the region's infrastructure and fast-growing urban cities."

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