A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 3 July 2015.
China’s stock market meltdown is now going truly molten. The Shanghai and Shenzhen Composite indices have both lost more than a third of their value since the Chinese equities bubble began to burst after its early June high point.
Motorcycle manufacturer shares — which far outpaced other sectors in the boom — are currently going bust at an equally extreme rate. Over the past week alone, Qianjiang, Sundiro and Lifan suffered price plunges of more than 30%.
Chinese government regulators are desperately trying to stem the tide of losses by bullying big brokerages into hanging onto stock and buying bundled shares on a price maintenance basis. They are also cracking the whip over any signs of short-selling and other forms of illicit market manipulation.
Zongshen, which only experienced a 10% weekly decline, was promptly punished with a trading suspension. Loncin aroused even greater suspicion by actually achieving a marginal 0.04% gain and was also suspended. Linhai remains in the regulatory doghouse for yet another week.
India, meanwhile, had a good week as a selection of positive motorcycle sales data was announced. Every major Indian bike producer enjoyed climbing share prices. Eicher finished up with a 3.6% improvement, falling back from an all-time record high on Friday.
Elsewhere, the Greek plunge into default and complete chaos subdued markets. In Europe, the Eurofirst 300 sank by 3.54% week-on-week. The three big German automotives boasting motorcycle sideshows matched that, with losses in a 3-4% range. KTM dropped by less in Austria and Piaggio was flat.
Concerns about Greece and its implications for eurozone health reached Japan, where the Nikkei 225 fell by just under 1%. Honda more or less held station but Yamaha, Kawasaki and Suzuki retreated — the latter by 3%.
The Greek debacle adding into mixed messages about the US economy impinged on New York sentiment too. The S&P 500 was down by 1.18%. Harley-Davidson’s share price fall exceeded that by a smidgeon, losing 1.55%.
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)
USA (US dollar)
Harley-Davidson P 56.03 C -0.12% R 70.41 – 53.04 Y -16.6%
Polaris P 149.14 C +0.3% R 159.33 – 130.00 Y +12.14%
Arctic Cat P 33.43 C -0.65% R 40.18 – 26.00 Y -15.65%
US Highland P 1.00 C -4.76% R 1.05 – 0.13 Y N/A
Viper P 0.00 C N/A R 0.02 – 0.00 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 28.93 C -1.83% R 29.80 – 20.67 Y +10.42%
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 24.40 C -1.01% R 33.60 – 22.25 Y -22.78%
Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.
VIETNAM (Hong Kong dollar)
VMEPH P 0.57 C -5% R 0.85 – 0.40 Y +32.56%
Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.
INDONESIA (rupiah)
Astra P 7050 C -0.35% R 8575 – 6325 Y -1.08%
Indomobil P 3700 C -2.5% R 4925 – 3050 Y -24.17%
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 99.15 C -0.01% R 123.75 – 74.74 Y +7.05%
Daimler P 83.53 C +0.31% R 96.07 – 55.10 Y +22.15%
VW P 210.79 C -0.47% R 254.99 – 147.35 Y +12.73%
KTM P 110.00 C N/A R 141.00 – 83.00 Y +13.95%
Piaggio P 3.06 C +1.66% R 3.18 – 1.93 Y +21.77%
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 -2.22% R 409.00 – 209.00 Y N/A
Pak Suzuki P 439.00 C +1.78% R 469.00 – 225.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV assembly partners.
INDIA (rupee)
Hero P 2576.65 C +1.91% R 3271.80 – 2251.30 Y +1.99%
Bajaj P 2588.00 C +0.85% R 2695.00 – 1912.50 Y +12.56%
TVS P 257.65 C +0.14% R 322.30 – 141.10 Y +51.78%
Eicher P 20,275.60 C -4.62% R 21,580.65 – 8005.10 Y +135.46%
Mahindra P 1312.65 C -0.06% R 1433.70 – 1102.00 Y +7.98%
Maharashtra P 1149.85 C +2.45% R 1151.00 – 616.15 Y +69.93%
Scooters India P 24.15 C -2.82% R 38.85 – 21.75 Y -20.3%
Notes: Hero MotoCorp is a former Honda JV partner. Bajaj has a major shareholding in KTM and ties with it and Kawasaki. TVS is a former Suzuki JV partner. 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 4039 C +0.01% R 4400 – 3239 Y +15.75%
Yamaha P 2733 C -0.36% R 3245 – 1702 Y +50.12%
Suzuki P 4081 C +0.62% R 4435 – 3011.5 Y +21.09%
Kawasaki P 560 C -0.53% R 647 – 369 Y +41.15%
CHINA (yuan)
Qianjiang P 7.97 C -10.05% R 17.11 – 5.88 Y +19.85%
Zongshen P 17.25 C -10.02% R 30.15 – 4.67 Y +248.89% [Trading suspended]
Sundiro P 6.44 C -9.93% R 12.69 – 3.86 Y +62.69%
Jialing P 8.02 C -9.99% R 16.34 – 5.54 Y +36.16%
Lifan P 12.07 C -9.99% R 27.99 – 6.66 Y N/A
Loncin P 25.36 C +0.32% R 39.48 – 9.29 Y +172.35% [Trading suspended]
Linhai P 13.37 C N/A R 14.29 – 6.38 Y N/A [Trading suspended]
CHINA (Hong Kong dollar)
Jianshe P 11.58 C -8.82% R 19.99 – 5.82 Y +94.95%
Guangzhou Auto P 6.81 C -1.45% R 9.87 – 6.58 Y -27.12%
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 7.33 C +0.83% R 7.94 – 6.46 Y -1.98%
Hong Leong P 4.48 C -1.97% R 7.54 – 3.95 Y -17.51%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.
SOUTH KOREA (won)
KR P 1095 C -3.52% R 1600 – 780 Y -5.19%
Daelim P 84,800 C +1.19% R 94,300 – 50,400 Y -3.05%
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.)