A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 7 October 2016.
A mood of caution pervaded developed western markets during the past week, fostered by concerns over potential “hard Brexit” economic impact in the UK. Weak US employment growth data for September added to that sombre tone towards the end.
US investors had little appetite for risk and New York’s S&P 500 index declined by 0.92%. Harley-Davidson and Polaris stocks both did far worse than that, in anticipation of disappointing third-quarter financial results due later this month. The former dropped by 5.6%, teetering on the brink of under 50 bucks again. The latter shed 4.4%.
Europe had been marginally brighter for most of the week but the eurozone’s Eurofirst 300 was pushed sharply negative by a seismic overnight plunge for sterling on Friday, closing 0.88% down. Although the motorcycle-related shares we follow began to retreat in line with such sentiment, they all still managed to buck the trend on earlier advances. In Germany, BMW was best of the lot, adding 3.4% — almost twice as much as its peers Daimler and VW. KTM in Vienna managed a 2.5% weekly rise and Piaggio in Milan 1.8%.
Japan was the only developed-world nation clinging to a grin factor, based on its own special export-related issue of currency translation. A small measure of yen weakness against the US dollar goes a long way to boosting Japanese confidence. So exporting bike manufacturers Honda, Yamaha and Suzuki enjoyed improving share prices. Even Kawasaki, which had suffered a severe 11% spanking on Monday after the company slashed its full-year profit forecast in half, partially recovered to finish 5.2% down. Poor US jobs news, which would have attracted attention, arrived too late, owing to the huge time-zone lag. Tokyo had already shut its shop when the announcement was made.
Chinese mainland stock exchanges in Shanghai and Shenzhen took the entire week off to cope with their hangovers from China’s National Day celebrations starting on Monday. India was therefore the sole big emerging nation with any equity investment action. Although the BSE Sensex 30 fell on Friday in response to British currency turbulence, it finished 0.7% positive for the week as a whole. That was reflected through upbeat performance by all leading indigenous motorcycle producers. As usual, TVS and Eicher were leaders of the pack, respectively posting 5.6% and 4% gains.
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)
USA (US dollar)
Harley-Davidson P 50.00 C -0.32% R 57.33 – 36.36 Y -6.44%
Polaris P 74.02 C -0.35% R 124.39 – 67.80 Y -37.06%
Arctic Cat P 14.96 C -0.99% R 25.60 – 8.90 Y -37.54%
US Highland P 0.0004 C N/A R 0.43 – 0.0003 Y N/A
Confederate P 0.05 C N/A R 0.33 – 0.05 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. Confederate Motors makes Combat Fighter cruisers.
CANADA (Canadian dollar)
BRP P 25.94 C -0.15% R 27.30 – 13.76 Y -0.19%
Notes: Bombardier Recreational Products makes Can-Am ATVs and Spyder road trikes, Ski-Doo snowmobiles, Sea-Doo PWCs and Rotax proprietary engines.
TAIWAN (Taiwanese dollar)
Sanyang P 21.10 C -0.71% R 23.90 – 19.80 Y -5.08%
Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.
VIETNAM (Hong Kong dollar)
VMEPH P 0.44 C N/A R 0.53 – 0.36 Y -9.28%
Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.
INDONESIA (rupiah)
Astra P 8200 C -1.8% R 8875 – 5700 Y +25.34%
Indomobil P 1320 C N/A R 3005 – 1250 Y -54.17%
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 77.29 C -1.32% R 104.85 – 63.38 Y -8.05%
Daimler P 63.85 C -0.76% R 85.50 – 50.83 Y -6.69%
VW P 130.80 C -0.71% R 146.50 – 106.65 Y +4.56%
KTM P 4.05 C N/A R 4.10 – 3.14 Y +23.72%
Piaggio P 1.69 C -0.65% R 2.50 – 1.45 Y -27.36%
Notes: Daimler’s AMG-Mercedes subsidiary has a 25% stake in MV Agusta. Volkswagen Group owns Ducati.
PAKISTAN (Pakistani rupee)
Atlas Honda P 516.96 C -1.71% R 525.00 – 330.08 Y N/A
Pak Suzuki P 555.78 C -1.46% R 592.00 – 363.01 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV assembly partners.
INDIA (rupee)
Hero P 3474.20 C N/A R 3740.00 – 2375.00 Y +38.64%
Bajaj P 2883.50 C +2.14% R 3122.00 – 2171.95 Y +20.55%
TVS P 386.20 C +0.39% R 389.20 – 237.15 Y +62.78%
Eicher P 25,810.45 C -1.64% R 26,641.30 – 14,800.00 Y +41.67%
Mahindra P 1374.00 C +0.08% R 1508.95 – 1091.25 Y +8.81%
Maharashtra P 1602.80 C +2.73% R 1694.95 – 942.00 Y +70.99%
Scooters India P 40.30 C -1.83% R 44.85 – 22.65 Y +31.7%
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 and 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 3069 C -0.1% R 4142 – 2417 Y -21.12%
Yamaha P 2183 C +1.3% R 3045 – 1409 Y -17.88%
Suzuki P 3521 C +0.92% R 4103 – 2450 Y -10.87%
Kawasaki P 294 C +2.08% R 502 – 257 Y -36.47%
CHINA (yuan)
Qianjiang P 18.63 C -0.37% R 19.49 – 6.71 Y N/A
Zongshen P 10.16 C -0.78% R 18.20 – 8.08 Y N/A
Sundiro P 9.17 C +0.77% R 9.94 – 5.53 Y N/A
Jialing P 8.03 C +10% R 10.99 – 5.67 Y N/A
Lifan P 9.53 C -0.1% R 19.47 – 8.05 Y N/A
Loncin P 19.95 C -0.15% R 25.52 – 14.80 Y N/A
Linhai P 13.08 C -0.91% R 14.71 – 8.41 Y N/A
GAG P 22.30 C +0.81% R 26.27 – 17.98 Y N/A
CHINA (Hong Kong dollar)
Jianshe P 15.38 C +8.08% R 19.20 – 11.25 Y N/A
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 7.00 C N/A R 7.52 – 6.48 Y +2.96%
Hong Leong P 9.10 C +0.11% R 9.80 – 5.25 Y +66.38%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.
SOUTH KOREA (won)
KR P 1095 C +4.78% R 1770 – 905 Y +0.92%
Daelim P 85,600 C +0.23% R 94,300 – 62,000 Y +14.64%
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.)