A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 21 June 2024. BDN financial editor Roger Willis reports.
USA — MORE WISHFUL THINKING
Signs of cooling American consumer demand and potentially declining GDP growth stoked investor excitement on the interest rate front once more, bolstering New York market indices. However, the spread was remarkably uneven.
Solidly bankable stocks pushed the Dow Jones Industrial Average to a 1.5% weekly gain but S&P 500 blue-chips only improved by 0.6%. However, S&P’s MidCap 400 added 1.3%, with MidCap powersports players Harley-Davidson, its LiveWire ePTW spin-off and Polaris all recovering some recent lost ground. In contrast, the tech-heavy NASDAQ Composite completely flatlined. NASDAQ-listed Energica electric superbike parent Ideanomics was on the receiving end of a harsh sell-off.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 33.67 | +3.5% | -4.4% |
| Polaris Industries | 78.74 | +2.2% | -4.4% |
| Textron | 86.74 | +1.7% | -2.1% |
| Ideanomics (Energica) | 0.87 | -15.5% | -8.4% |
| Niu Technologies | 1.84 | +2.2% | -8.5% |
| LiveWire | 7.22 | +4.2% | +8.9% |
EUROPE — CONFUSION REIGNS
Northern European market indices pulled back from the previous week’s heavy losses, with Germany’s Xetra Dax in Frankfurt turning positive by 0.9% and the Wiener Börse ATX in Austria 1.6% up. But motorcycle-related automotive stocks didn’t attract much of the action. While BMW returned to marginal positivity, Volkswagen continued to slide. And Austrian biker giant Pierer’s share price plunged after it released a half-year profit warning.
Conversely, the Borsa Italiana’s FTSE MIB in Milan was savaged, falling by 6.6%. But its biggest PTW presence Piaggio bucked that trend with a reasonable gain.
| Currency: euro | Price | Week | Month |
| BMW | 87.26 | +0.4% | -6% |
| Volkswagen | 112.30 | -0.4% | -19.4% |
| Pierer Mobility | 29.20 | -17.5% | -23.6% |
| Piaggio Group | 2.82 | +3.7% | +1.4% |
JAPAN — TESTING TIMES
The Tokyo/Osaka Nikkei 225 market index dropped by 0.6% as a wave of Japanese automotive exporter angst upset the applecart. Technical testing and certification issues had seen Honda, Mazda, Suzuki, Toyota and Yamaha pause export shipments. In most cases, cars were affected. But Yamaha’s problem was apparently Euro 5 plus compliance on certain motorcycle and scooter models. Inevitably, indigenous automotive manufacturer share prices were impacted, including all four of those with motorcycle businesses.
| Currency: yen | Price | Week | Month |
| Honda | 1660 | -2.1% | -4.3% |
| Yamaha | 1490.5 | -1.7% | -0.3% |
| Suzuki | 1816.5 | -2.1% | -2.5% |
| Kawasaki | 5694 | -2.6% | -1.7% |
INDIA — CURRYING FRESH FAVOURS
Having lost an outright majority in India’s recent general election, prime minister Narendra Modi and his Hindu nationalist Bharatiya Janata Party are now having to face the raw reality of governing in coalition with some of their bitter enemies. And such political instability has quickly undermined business and investment confidence. Both Mumbai stock market indices — S&P’s BSE Sensex 30 and the NSE Nifty 50 — struggled to get off the floor in the past week, respectively rising by just 0.3% and 0.1%. All five major Indian motorcycle producers suffered falling share prices.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 5452.00 | -6.1% | +6.5% |
| Bajaj Auto | 9602.25 | -3.6% | +7.3% |
| TVS Motor | 2435.40 | -2.7% | +8.8% |
| Eicher Motors | 4845.50 | -1.8% | -0.7% |
| Mahindra | 2839.95 | -3.1% | +10.1% |
CHINA — DEADLY AGENDA
Chinese president Xi Jinping is widely seen as the “hidden hand” behind Vladimir Putin’s recent forays to foster friendships with North Korea and Vietnam. And now the Beijing government has threatened Taiwanese politicians promoting permanent independence for their country with death penalties. So a mounting fear factor is also raising question marks over Western and Japanese joint-venture affiliates, and long-term contract suppliers, manufacturing in mainland China — many of which make motorcycles and related componentry.
Every time Chinese government spokesmen open their mouths, China’s stock market indices fall further. In the past week, after the sabre was rattled at Taiwan, Shanghai’s SSE Composite dropped by 1.1% and the blue-chip CSI 300 closed 1.3% in arrears. The value of biker businesses listed here bounces up and down like the proverbial yo-yo. Half of them have JV or external contract relationships.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 16.98 | -0.1% | -10.5% |
| Zongshen | 12.10 | -4.7% | +4.1% |
| Sundiro | 2.99 | +1% | -1% |
| CETC (Jialing) | 11.16 | -3.4% | +1.2% |
| Lifan | 3.35 | +20.9% | +6.3% |
| Loncin | 7.06 | -1.1% | +0.6% |
| Linhai | 6.98 | -1.3% | -10.6% |
| Guangzhou Auto | 8.16 | -3% | -3.4% |
| CFMoto | 158.77 | +9% | +1.9% |
| Xinri E-Vehicle | 11.13 | -1.6% | -3.7% |