A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 18 September 2015.
The US Federal Reserve’s latest policy statement, pointedly citing concerns about slackening Chinese growth to justify a decision to leave interest rates at a record low, unsettled market confidence everywhere.
Global stocks retreated, with gloom accelerating towards the weekend. In America, the S&P 500 fell steadily on Thursday and Friday although it managed to stay marginally positive by 0.22% week-on-week. But both Harley-Davidson and Polaris suffered price declines.
Europe felt more firmly negative pain as its Eurofirst 300 index fell by 0.25% on a weekly basis and the exporter-heavy Extra Dax in Frankfurt dropped sharply by 3% on Friday. On that bourse, BMW escaped with a flat price but Daimler and Volkswagen headed downwards. In Milan, Piaggio also lost ground.
In Japan, US caution drove the Nikkei 225 down by 2% on Friday and 1.06% for the week overall. However, investor reaction was slow as far as motorcycle manufacturers were concerned. Although three out of the four started to experience declines on Friday (Suzuki was the exception with a marginal gain), they all finished up on slight weekly growth.
India was also a bit tardy in absorbing US sentiment too. Five of its seven listed bike producers added value. It has to be noted, though, that the two losers — Bajaj and Eicher — have much more dependence on exporting and would be the most affected by any world trade slowdown leaking beyond Chinese borders.
China itself remained in the unremitting bad news department. Shares prices on both the Shanghai and Shenzhen exchanges continued to “readjust” in a downwards direction overall with wild volatility on a daily basis. Two Chinese manufacturers — Qianjiang and Jialing — are now worth less than they were a year ago, before China’s now-burst stock bubble began to inflate.
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)
USA (US dollar)
Harley-Davidson P 4.42 C -2.3% R 70.41 – 50.64 Y -11.23%
Polaris P 126.80 C -2.42% R 159.33 – 119.96 Y -14.28%
Arctic Cat P 24.65 C -1.87% R 39.72 – 23.45 Y -31.13%
US Highland P 0.70 C N/A R 1.05 – 0.13 Y N/A
Viper P 0.0025 C N/A R 0.01 – 0.0025 Y N/A
Notes: Polaris makes Victory and Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Arctic Cat makes ATVs and snowmobiles. US Highland makes off-road bikes. Viper Powersports makes the Diamondback Super Cruiser.
CANADA (Canadian dollar)
BRP P 26.15 C -1.47% R 29.80 – 20.67 Y +8.96%
Notes: Bombardier Recreational Products makes Can-Am ATVs, Spyder road trikes, Ski-Doo snowmobiles, Sea-Doo PWCs and Rotax proprietary engines.
TAIWAN (Taiwanese dollar)
Sanyang P 24.00 C -0.41% R 31.60 – 19.15 Y -13.2%
Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.
VIETNAM (Hong Kong dollar)
VMEPH P 0.45 C +3.45% R 0.85 – 0.40 Y -6.25%
Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.
INDONESIA (rupiah)
Astra P 5800 C -2.11% R 8575 – 5450 Y -18.62%
Indomobil P 2700 C -2.53% R 4600 – 2700 Y -38.46%
Notes: Astra International is a Honda JV partner. Its controlling shareholder is British conglomerate Jardine Matheson. Indomobil Sukses Internasional is a Suzuki JV partner.
EUROPE (euro)
BMW P 85.93 C -2.63% R 123.75 – 74.52 Y -0.75%
Daimler P 72.53 C -3.61% R 96.07 – 55.10 Y +17.04%
VW P 161.17 C -3.84% R 254.99 – 147.35 Y -5.16%
KTM P 112.00 C -1.75% R 141.00 – 99.69 Y +9.05%
Piaggio P 2.32 C -2.03% R 3.18 – 1.93 Y +10.89%
Notes: Daimler’s AMG-Mercedes subsidiary has a 25% stake in MV Agusta. Volkswagen Group owns Ducati and a 20% stake in Suzuki.
PAKISTAN (Pakistani rupee)
Atlas Honda P 347.00 C -0.86% R 409.00 – 275.00 Y N/A
Pak Suzuki P 416.00 C -0.91% R 493.00 – 276.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV assembly partners.
INDIA (rupee)
Hero P 2428.50 C +2.54% R 3271.80 – 2251.30 Y -16.81%
Bajaj P 2297.50 C -2.24% R 2695.00 – 1912.50 Y -2.86%
TVS P 235.85 C +1.05% R 322.30 – 201.00 Y +10.15%
Eicher P 18,234.45 C +1.66% R 21,620.00 – 10,826.35 Y +57.21%
Mahindra P 1199.25 C +2.68% R 1442.05 – 1092.15 Y -11.87%
Maharashtra P 981.35 C +0.8% R 1200.00 – 785.85 Y +21.35%
Scooters India P 24.50 C -0.61% R 38.85 – 21.75 Y -11.07%
Notes: Hero MotoCorp is an own-brand former Honda JV partner. Bajaj has a major shareholding in KTM and ties with it and Kawasaki. TVS is a former Suzuki JV partner and now BMW Motorrad contractor. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has an own-brand bike range and a majority stake in French scooter brand Peugeot. Maharashtra Scooters assembles CKD scooter kits manufactured by Bajaj. Scooters India makes Vikram three-wheeled taxis and light trucks. The Indian government has a majority stake.
JAPAN (yen)
Honda P 3799 C -1.41% R 4499 – 3239 Y +3.48%
Yamaha P 2443 C -0.97% R 3245 – 1803 Y +18.13%
Suzuki P 3858.5 C +0.31% R 4780.5 – 3011.5 Y +2.56%
Kawasaki P 466 C -1.89% R 647 – 393 Y +9.34%
CHINA (yuan)
Qianjiang P 6.34 C +1.77% R 17.11 – 5.55 Y -9.69%
Zongshen P 9.63 C +0.31% R 30.15 – 7.05 Y +29.76%
Sundiro P 5.03 C N/A R 12.69 – 4.70 Y N/A [Trading suspended]
Jialing P 7.19 C +9.94% R 16.34 – 5.27 Y -6.38%
Lifan P 9.15 C +1.89% R 27.99 – 8.15 Y +8.89%
Loncin P 14.84 C +3.49% R 39.48 – 12.82 Y +5.13%
Linhai P 13.37 C N/A R 14.29 – 7.78 Y N/A [Trading suspended]
Guangzhou Auto P 18.80 C +1.51% R 21.38 – 7.63 Y +127.29%
CHINA (Hong Kong dollar)
Jianshe P 11.38 C N/A R 19.99 – 6.85 Y N/A [Trading suspended]
Notes: Qianjiang owns Keeway and formerly Italian Benelli. Zongshen makes own-brand bikes and proprietary engines, and has JV partnerships with Piaggio, (scooters), and Harley-Davidson (parts). Sundiro is a Honda JV partner. Jialing makes own-brand bikes using Honda licensed technology. Lifan makes own-brand bikes and distributes MV Agusta in China. Loncin is a Kawasaki JV partner and OEM engine contractor to BMW Motorrad. Linhai and Jianshe are Yamaha JV partners. Guangzhou Automobile Group is the parent of Honda JV partner and own-brand bike manufacturer Wuyang.
MALAYSIA (ringgit)
Oriental Holdings P 6.90 C -1.43% R 7.93 – 6.46 Y -9.56%
Hong Leong P 5.52 C +0.36% R 7.54 – 3.95 Y -20.07%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.
SOUTH KOREA (won)
KR P 1005 C +0.6% R 1600 – 798 Y +20.1%
Daelim P 71,200 C -1.79% R 98,000 – 50,400 Y -19.24%
Notes: KR Motors makes Hyosung bikes and ATVs. Daelim Industrial retains a controlling 59% stake in Daelim Motor, the largest bike manufacturer in Korea. (The remainder is British, owned by Standard Chartered Bank.)