A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 14 August 2015.
In the face of a clearly weakening economy, latest Chinese wizard wheeze was an entirely unexpected currency devaluation by the People’s Bank of China over the past week — cutting the price of exports and making imports dearer. Inevitably, that impinged on equity investment confidence, locally to the good and elsewhere not.
Increasing calm on exchanges in Shanghai and Shenzhen was also boosted by an announcement that supportive intervention by the state-controlled China Securities Finance Group would continue for “a number of years” if necessary. However, the China Securities Regulatory Commission did concede that a gestural measure of free movement would be permitted. A CSRC spokesman in Beijing said: “With market fluctuations gradually shifting to normal, from wild and abnormal, we should let the market exercise its function of self-adjustment.”
In response to this, the Shanghai Composite index made a 5.4% weekly improvement. The six Chinese motorcycle manufacturers with active listings boasted positive gains more or less in line with that. Most exaggerated beneficiaries were Jialing and Loncin, respectively with 20% and 10.5% week-on-week rises. A further three — Zongshen, Linhai and Jianshe — still languish under trading suspensions.
Calm in China caused a storm in Europe, though, as the effect of a devalued yuan was digested. Given their dependence on Chinese vehicle sales, Germany’s three big automotives with motorcycling sideshows saw their shares hammered, falling by between 6% and almost 8%, as the Eurofirst 300 index dropped by 2.94% overall. In Austria, KTM slumped by a smaller degree of 2.4%. Italy’s Piaggio was down far more sharply by 7.9%.
Export-led Japanese companies didn’t enjoy the news from China, either. Tokyo’s Nikkei 225 declined by 0.99% and Japan’s four bike brands complied with that negativity by posting share price losses. And the Indians weren’t impressed with increased Chinese competitiveness. Five out of seven listed bike producers suffered retreats. Hero and Bajaj trend-bucked via very marginal gains.
Only the US escaped, thanks to the counter-balance of some encouraging economic data on home turf. As the S&P 500 climbed slightly, up by 0.34%, both Harley-Davidson and Polaris posted modest share price growth.
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)
USA (US dollar)
Harley-Davidson P 59.23 C +0.56% R 70.41 – 53.04 Y -2.48%
Polaris P 137.97 C +0.41% R 159.33 – 131.57 Y -5.28%
Arctic Cat P 30.00 C +0.24% R 39.72 – 26.00 Y -17.35%
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 28.73 C +1.41% R 29.80 – 20.67 Y +9.2%
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 21.25 C +1.19% R 31.60 – 20.55 Y -24.91%
Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.
VIETNAM (Hong Kong dollar)
VMEPH P 0.53 C -3.64% R 0.85 – 0.40 Y +23.26%
Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.
INDONESIA (rupiah)
Astra P 6425 C +0.39% R 8575 – 5950 Y -13.38%
Indomobil P 3300 C -1.35% R 4600 – 3050 Y -24.79%
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 86.57 C +0.31% R 123.75 – 74.74 Y +2.27%
Daimler P 77.19 C +0.11% R 96.07 – 55.10 Y +32.77%
VW P 180.33 C -0.37% R 254.99 – 147.35 Y +11.25%
KTM P 112.00 C -2.61% R 141.00 – 91.01 Y +20.01%
Piaggio P 2.69 C -1.61% R 3.18 – 1.93 Y +25.23%
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 350.00 C +2.86% R 409.00 – 217.00 Y N/A
Pak Suzuki P 475.00 C +0.65% R 493.00 – 225.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV assembly partners.
INDIA (rupee)
Hero P 2712.45 C +2.49% R 3271.80 – 2251.30 Y +9.24%
Bajaj P 2558.60 C +2.89% R 2695.00 – 1912.50 Y +22.23%
TVS P 230.20 C +2.06% R 322.30 – 171.30 Y +30.28%
Eicher P 20,600.60 C +3.51% R 21,620.00 – 9706.00 Y +106.13%
Mahindra P 1378.15 C +2.88% R 1442.05 – 1102.00 Y +5.24%
Maharashtra P 1069.60 C +0.96% R 1200.00 – 730.00 Y +46.89%
Scooters India P 25.20 C -4.55% R 38.85 – 21.75 Y -9.03%
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 4199.5 C -2.52% R 4499 – 3239 Y +23.68%
Yamaha P 2562 C -1.27% R 3245 – 1803 Y +37.17%
Suzuki P 4449.5 C -0.53% R 4780.5 – 3011.5 Y +34.46%
Kawasaki P 524 C -1.13% R 647 – 377 Y +40.42%
CHINA (yuan)
Qianjiang P 9.50 C N/A R 17.11 – 5.55 Y +43.07%
Zongshen P 17.25 C N/A R 30.15 – 4.94 Y N/A [Trading suspended]
Sundiro P 7.69 C +0.52% R 12.69 – 4.32 Y +71.06%
Jialing P 12.55 C +7.45% R 16.34 – 5.27 Y +99.21%
Lifan P 16.04 C -1.66% R 27.99 – 8.11 Y +79.96%
Loncin P 25.04 C +1.38% R 39.48 – 11.30 Y +119.7%
Linhai P 13.37 C N/A R 14.29 – 7.40 Y N/A [Trading suspended]
Guangzhou Auto P 19.88 C +6.2% R 21.38 – 7.63 Y +144.13%
CHINA (Hong Kong dollar)
Jianshe P 11.38 C N/A R 19.99 – 5.93 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 6.72 C -1.18% R 7.94 – 6.46 Y -13.03%
Hong Leong P 4.90 C -2% R 7.54 – 3.95 Y -13.13%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.
SOUTH KOREA (won)
KR P 1095 C -0.45% R 1600 – 780 Y +9.72%
Daelim P 66,000 C +3.77% R 98,000 – 50,400 Y -25.98%
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.)