Couple revs up in motorcycle arena
By Margie Quimpo-Espino
Philippine Daily Inquirer
First Posted 21:52:00 11/08/2008
MANILA, Philippines—Not a few businessmen have accumulated wealth by simply buying cheap goods in China and selling these in Manila for a profit.
A Chinese-Filipino couple, however, has taken the trading business a notch higher and is working to get a chunk of the market with its Filipino-developed motorcycle brand.
Eric and Leviruth Lee of MCX Motor Phils. Inc. have been producing Filipino motorcycle models the past two years, starting with three last year and four this year.
When the couple entered the motorcycle business in 2003, it was already a pretty competitive one, dominated by Japanese manufacturers, and crowded by China-made bikes that started coming into the country in 1996.
China bikes were initially a hit because price tags are about 40 percent lower than the Japanese brands—Honda, Kawasaki, Yamaha and Suzuki—which had dominated the Philippine two-wheel vehicle sector for decades.
But MCX, then called Goodyear Export Import, was getting nowhere and competition was tough. It also soon became obvious that the quality of many China-made bikes were not at par with the Japanese ones.
Eric and Levi saw this weakness and realized they had to take the business a step further to ensure getting a slice of the pie from the Japanese.
“My first concept of the business was only for trading,” Eric said. “But we realized that this business model was misplaced, as almost all new players in the industry were into this. Customers were clamoring for better service, available parts and better quality. It was because of this clamor that we decided to go into [full-time] manufacturing.”
He invested in research and development in the Philippines, and decided to go downstream by putting up a small plant in China to ensure better quality of raw materials and parts. “We are now also manufacturing some critical parts with our specification designed for the local market.”