A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 10 June 2016.
Yo-yo crude oil prices sank in the past week and UK political risk from the Brexit issue increasingly spooked global financial markets, encouraging equities investors to sit on their hands. Growing demand for “safe-haven” government bonds instead also pushed pressure on to share prices.
In New York, the S&P 500 index peaked midweek and then reversed rapidly to finish 0.38% down. Harley-Davidson and Polaris tracked a tougher trend affecting US discretionary consumer brands, respectively falling by 2.7% and 2.9%.
Nerves were stretched tighter in Europe, where the eurozone’s Eurofirst 300 copped a second successive weekly decline, dropping by 2.29%. Every motorcycle-related stock fell accordingly, apart from KTM stuck on its private buy-out offer price.
A tendency to swerve into bonds also hit Japan as the yen strengthened without any immediate prospect of central bank intervention. All four Japanese bike producers saw their share prices suffer, along with other exporters.
As for emerging markets, Indian investors questioned the reliability of claims that their country’s economy was growing at the fastest pace for five years, 7.9% up in the first quarter of 2016. Disbelief soured stock trading and the BSE Sensex 30 was negative by 0.77%. India’s big-four motorcycle manufacturers — Hero, Bajaj, TVS and Eicher — retreated. China was far more confident. Untouched by Western woes, Shanghai’s Composite index stacked on 3.73%. However, the taste for biker shares was mixed, with four winners and three losers.
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)
USA (US dollar)
Harley-Davidson P 44.47 C -1.51% R 60.67 – 36.36 Y -16.02%
Polaris P 81.32 C -3.8% R 156.35 – 67.80 Y -43.02%
Arctic Cat P 15.84 C -5.71% R 35.78 – 8.90 Y -52.28%
US Highland P 0.01 C +30.77% R 0.70 – 0.01 Y N/A
Viper P 0.0008 C N/A R N/A Y N/A
Confederate P 0.10 C -32.3% R 0.33 – 0.08 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. Confederate Motors makes Combat Fighter cruisers.
CANADA (Canadian dollar)
BRP P 21.52 C +0.42% R 29.80 – 13.76 Y -22.03%
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 21.35 C -0.23% R 26.05 – 19.15 Y -11.96%
Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.
VIETNAM (Hong Kong dollar)
VMEPH P 0.41 C N/A R 0.75 – 0.36 Y -32.5%
Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.
INDONESIA (rupiah)
Astra P 6625 C -3.64% R 7850 – 4975 Y -3.53%
Indomobil P 1545 C -0.96% R 3800 – 1500 Y -58.63%
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 70.29 C -2.2% R 105.45 – 65.99 Y -26.43%
Daimler P 57.33 C -2.67% R 87.63 – 56.19 Y -27.88%
VW P 132.01 C -1.53% R 219.90 – 95.00 Y -37.62%
KTM P 122.50 C N/A R 130.00 – 99.69 Y +10.42%
Piaggio P 1.70 C -1.11% R 3.18 – 1.56 Y -42.84%
Notes: Daimler’s AMG-Mercedes subsidiary has a 25% stake in MV Agusta. Volkswagen Group owns Ducati.
PAKISTAN (Pakistani rupee)
Atlas Honda P 365.00 C -2.31% R 414.80 – 320.05 Y N/A
Pak Suzuki P 415.52 C -1.48% R 532.00 – 371.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV assembly partners.
INDIA (rupee)
Hero P 3069.50 C -0.56% R 3211.15 – 2257.20 Y +24.36%
Bajaj P 2579.95 C -0.48% R 2659.15 – 2133.15 Y +17.65%
TVS P 286.70 C -1.1% R 340.90 – 201.00 Y +28.78%
Eicher P 18,620.15 C +0.19% R 21,620.00 – 14,800.00 Y +7.57%
Mahindra P 1375.85 C +0.18% R 1442.05 – 1091.25 Y +16.42%
Maharashtra P 1392.90 C +0.12% R 1619.00 – 936.60 Y +48.75%
Scooters India P 25.35 C +3.05% R 35.05 – 22.00 Y +5.63%
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 2890.5 C -0.09% R 4499 – 2726 Y -27.81%
Yamaha P 1711 C -0.64% R 3050 – 1581 Y -42.02%
Suzuki P 2795.5 C +0.02% R 4780.5 – 2450 Y -34%
Kawasaki P 319 C -1.85% R 625 – 269 Y -46.8%
CHINA (yuan)
Qianjiang P 11.96 C -0.91% R 17.11 – 5.55 Y -23.09%
Zongshen P 10.56 C -0.94% R 29.08 – 8.08 Y -58.8%
Sundiro P 5.71 C N/A R 12.69 – 4.89 Y N/A [Trading halted]
Jialing P 7.38 C N/A R 16.34 – 5.27 Y N/A [Trading halted]
Lifan P 10.35 C -0.19% R 27.99 – 8.05 Y -59.57%
Loncin P 17.67 C -1.28% R 39.48 – 13.00 Y -53.32%
Linhai P 11.48 C +0.44% R 14.71 – 8.41 Y -19.1%
GAG P 22.90 C -2.14% R 25.55 – 11.03 Y +56.3%
CHINA (Hong Kong dollar)
Jianshe P 13.98 C -0.43% R 19.20 – 7.72 Y -20.48%
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 (GAG) is the parent of Honda JV partner and own-brand bike manufacturer Wuyang.
MALAYSIA (ringgit)
Oriental Holdings P 6.87 C N/A R 7.38 – 6.48 Y -3.37%
Hong Leong P 8.20 C -0.61% R 8.30 – 4.34 Y +93.57%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.
SOUTH KOREA (won)
KR P 1115 C +0.9% R 1770 – 905 Y -0.89%
Daelim P 83,800 C -0.48% R 98,000 – 59,600 Y +8.19%
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.)