A snapshot of global bike and ATV industry share performance at the trading closure on Friday 28 November 2014.
Big news on most financial markets worldwide in the past week was the plummeting price of oil — now down by a third since June. At one point, the international crude benchmark dipped below $70 a barrel, hammering energy supplier share prices while boosting the stocks of companies in consumption industries, such as manufacturing and infrastructure. For the time being, though, these conflicting pressures have cancelled each other out, indices-wise.
In New York, the S&P 500 index rose fractionally by 0.2 per cent during a trading week shortened by Thanksgiving and Black Friday and has gained 2.5 per cent through November. But both Harley-Davidson and Polaris were well ahead of that, like all automotive-related stocks, on the back of prospects for cheaper pump fuel as well as lower input costs for energy and components such as plastic items dependent on oil for content.
In Europe, the FTSE Eurofirst 300 continued to improve — by 0.6 per cent — despite sharp losses in the energy sector. Anything connected with transport and consumer spending was up, including all five motorcycle-oriented stocks. However, KTM fell back on Friday by four per cent from an all-time record peak.
Bombay’s Sensex 30 overwhelmed a downbeat message that Indian economic growth had slowed to 5.3 per cent thanks to oil-price optimism — a particularly massive issue in any large country which has to import most of its energy. Only two bike manufacturers — Bajaj and TVS — experienced marginal declines. Japan, in the same boat as far as energy goes, was equally cheerful. The Nikkei 225 grew by 6.4 per cent in November and enjoyed another positive week. Among the indigenous four motorcycle brands, only Honda lost out week-on-week.
China, which has no significant strategic energy resources and even has to import most of the coal it uses in addition to oil and gas, was naturally ecstatic. The Shanghai Composite index advanced by almost eight per cent to a three-year high. Anticipation of further Bank of China interest rate cuts helped to crank up this action. Bike producers were to the fore with every single trading stock stacking on value across the Shanghai, Shenzhen and Hong Kong exchanges. Loncin, sadly missed out, as its shares languished in punitive regulatory suspension for a second week.
Price (P) High (H) Low (L) Change (C) 52-week range (R) One-year return (Y)
USA (US dollar)
Harley-Davidson P 69.68 H 69.94 L 68.50 C +2.04% R 74.13 – 54.22 Y +5.59%
Polaris P 156.71 H 157.82 L 155.775 C +0.31% R 159.33 – 118.80 Y +19.02%
Arctic Cat P 33.05 H 33.41 L 32.94 C -0.72% R 59.73 – 30.11 Y -40.52%
US Highland P 0.13 H 0.151 L 0.13 C N/A R 0.59 – 0.13 Y N/A
Viper P 0.0016 H 0.0016 L 0.0015 C +6.67% R 0.05 – 0.0012 Y -93.85%
Notes: Polaris makes ATVs, snowmobiles, Victory and Indian motorcycles. Arctic Cat makes ATVs and snowmobiles. US Highland makes a range of four-stroke dirt bikes. Viper Powersports produces the Diamondback Super Cruiser with a British-built 2490cc Ilmor engine.
CANADA (Canadian dollar)
BRP P 27.90 H 28.29 L 27.51 C +0.76% R 31.98 – 23.51 Y -2.72%
Notes: Bombardier Recreational Products makes Can-Am ATVs and Spyder road trikes, as well as Ski-Doo snowmobiles, Sea-Doo personal watercraft and Rotax engines for a range of applications including motorcycles — most recently Buell’s EBR superbike.
EUROPE (euro)
BMW P 91.65 H 91.95 L 91.11 C +0.62% R 96.10 – 74.74 Y +11.71%
Daimler P 67.55 H 67.809 L 66.80 C +1.18% R 71.27 – 55.10 Y +14.58%
Piaggio P 2.36 H 2.392 L 2.32 C -0.84% R 3.092 – 1.93 Y -2.48%
KTM P 132.05 H 135.00 L 132.05 C -4.31% R 138.30 – 59.26 Y +124.58%
VW P 181.096 H 182.25 L 180.55 C -0.33% R 198.43 – 147.35 Y -3.21%
Notes: Daimler has a 25 per cent stake in MV Agusta through its AMG-Mercedes subsidiary. Volkswagen is the owner of Ducati Motor Holding
INDIA (rupee)
Hero P 3147.40 H 3162.40 L 3100.00 C +1.39% R 3162.40 – 1907.00 Y +58.98%
Bajaj P 2640.80 H 2675.55 L 2630.70 C -0.39% R 2695.00 – 1793.20 Y +36.66%
TVS P 229.20 H 236.60 L 228.15 C -1.04% R 266.70 – 52.05 Y +321.73%
Eicher P 14,518.70 H 14,600.00 L 14,228.60 C +1.26% R 15,149.90 – 4401.10 Y +211.44%
Mahindra P 1323.75 H 1327.90 L 1292.00 C +2.37% R 1433.70 – 846.25 Y +41.7%
Maharashtra P 1048.40 H 1060.00 L 1033.00 C +0.9% R 1124.00 – 389.00 Y +170.31%
Scooters India P 30.75 H 31.80 L 30.00 C +1.32% R 38.85 – 14.20 Y +101.64%
Notes: Hero MotoCorp is a former Honda JV partner. Bajaj has technical partnerships with KTM and Kawasaki. TVS is a former Suzuki JV partner. Bajaj and TVS also both export. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has a technical partnership with Taiwanese brand SYM and an own-brand motorcycle range. Maharashtra Scooters assembles CKD scooter kits manufactured by Bajaj, which is also a substantial shareholder in the company. Scooters India manufactured Lambretta scooters until 1997 but now only makes Vikram three-wheeled taxis and light trucks. The Indian government has a majority stake.
PAKISTAN (Pakistani rupee)
Atlas Honda P 315.00 H 315.00 L 290.11 C +5% R 355.57 – 209.00 Y N/A
Pak Suzuki P 378.00 H 379.00 L 355.00 C +2.12% R 401.00 – 134.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV motorcycle assembly and distribution partners.
JAPAN (yen)
Honda P 3571.5 H 3571.5 L 3524 C +1.68% R 4340 – 3239 Y -15.61%
Yamaha P 2523 H 2530 L 2481 C +0.72% R 2625 – 1265 Y +57.3%
Suzuki P 3749.5 H 3756 L 3660 C +1.79% R 3848 – 2497 Y +43.71%
Kawasaki P 522 H 522 L 513 C +2.15% R 526 – 350 Y +27.13%
CHINA (yuan)
Qianjiang P 7.06 H 7.15 L 6.97 C -0.7% R 7.57 – 4.61 Y +46.47%
Qingqi P 6.69 H 7.04 L 6.68 C -2.34% R 7.04 – 3.34 Y N/A
Zongshen P 10.05 H 10.82 L 9.99 C -3.55% R 10.82 – 3.92 Y +116.04%
Sundiro P 5.46 H 5.57 L 5.38 C -1.44% R 5.95 – 3.48 Y +34.22%
Jialing P 7.82 H 8.00 L 7.75 C -2.49% R 8.20 – 3.01 Y +93.09%
Lifan P 10.23 H 10.53 L 9.65 C +4.82% R 10.53 – 5.65 Y +60.35%
Loncin P 16.48 H N/A L N/A C N/A R 18.81 – 8.24 Y N/A [Trading suspended]
Linhai P 9.66 H 9.84 L 9.62 C -0.72% R 11.39 – 4.80 Y +75.88%
CHINA (Hong Kong dollar)
Jianshe P 8.56 H 8.59 L 8.37 C +1.3% R 9.40 – 5.28 Y +52.86%
Guangzhou Auto P 7.34 H 7.40 L 7.25 C +0.55% R 10.46 – 6.72 Y -26.86%
Notes: Qianjiang owns both the exported Keeway brand and the formerly Italian Benelli brand. Qingqi is a Suzuki JV partner, a Peugeot scooter contractor and also makes Qingqi and Sinnis branded bikes. Zongshen produces own-brand bikes and proprietary engines, and has JV partnerships with Piaggio, producing scooters, and Harley-Davidson, making parts. Sundiro is the biggest Honda JV bike partner in China. Jialing makes and exports own-brand bikes using Honda licensed technology and is a Honda JV power products partner. Lifan makes and exports own-brand bikes, and distributes MV Agusta products 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. It also has JV car production partnerships with Honda and Toyota.
VIETNAM (Hong Kong dollar)
VMEPH P 0.48 H 0.48 L 0.48 C N/A R 0.69 – 0.40 Y -14.29%
Notes: Vietnam Manufacturing & Export Processing Holdings is the third-largest Vietnamese scooter and motorcycle manufacturer. It is a JV partnership with Taiwanese brand SYM. VMEPH is headquartered in Hong Kong and listed on both the HK and Taipei stock exchanges.
TAIWAN (Taiwanese dollar)
Sanyang P 28.85 H 29.40 L 28.80 C -1.37% R 63.00 – 25.20 Y -41.62%
Notes: Sanyang Industry is the leading Taiwanese powered two-wheeler manufacturer through its widely-exported SYM brand.
MALAYSIA (ringgit)
Oriental Holdings P 7.40 H 7.40 L 7.22 C +0.68% R 8.81 – 6.95 Y -13.28%
Hong Leong P 4.52 H 4.60 L 4.40 C -1.31% R 7.543 – 3.95 Y +7.78%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner and former owner of the German MZ concern.
INDONESIA (rupiah)
Astra P 7125 H 7125 L 7000 C +0.35% R 8050 – 6050 Y +17.47%
Notes: Astra International is a Honda JV partner. Its controlling shareholder is Jardine Matheson Holdings, a British-managed conglomerate domiciled in Hong Kong.
SOUTH KOREA (won)
KR P 993 H 1020 L 984 C -2.17% R 1495 – 425 Y +119.21%
Daelim P 67,500 H 71,000 L 67,000 C -5.2% R 102,000 – 62,700 Y -32.76%
Notes: KR Motors (formerly S&T) manufactures Hyosung-branded bikes and ATVs, exporting to the US, Europe including the UK and elsewhere. Daelim Industrial is a diversified conglomerate which retains a controlling 59 per cent stake in Daelim Motor, the largest motorcycle and scooter manufacturer in Korea. (The remainder is British-owned, by the private equity arm of Standard Chartered Bank.)