A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 2 September 2022. BDN financial editor Roger Willis reports.
USA – MOOD DARKENS
Gloom pervaded most global markets, following a wave of negative economic indicators. A slight rise in US unemployment figures during August was seen as yet another sign of impending recession and New York stock indices all finished on the back foot as they moved forward into September.
The blue-chip S&P 500 and Dow Jones Industrial Average respectively posted 3.3% and 3% weekly losses. S&P’s MidCap 400, mainly representing second-tier manufacturers, dropped further by 4.3%.
HOGOMETER
Having sunk marginally below their 40-buck perch at the previous week’s conclusion, Harley-Davidson shares continued to decline – tracking MidCap woes with remarkable accuracy. The price fell by 0.7% on Monday and then entered $38 territory with a firmer 2% retreat on Tuesday. Wednesday and Thursday saw repeated 0.9% losses, before the rate of attrition flattened to just one cent in final-session arrears on Friday.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 38.22 | -4.4% | +2.5% |
| Polaris Industries | 112.33 | -4% | -2.4% |
| Textron | 61.85 | -4.3% | -4% |
| Ideanomics (Energica) | 0.61 | +1.7% | -14.1% |
EUROPE – GLIMMER OF HOPE
A modest portion of upbeat news made European sentiment buck global trends. Despite latest pointers suggesting the energy crisis was worsening, German economy minister Robert Habeck said that his country was on course to hit its gas storage targets for the forthcoming winter. This cheered industrial users mightily and, in response, the spot price for gas actually fell. Frankfurt’s Xetra Dax stock index also celebrated, with an almost unique 0.6% rise. Volkswagen and BMW both benefited from bigger advances.
The Teutonic automotive investor firmament was additionally lifted by new VW chief executive Oliver Blume announcing an intention to accelerate the group’s vehicle electrification programme. The only loser was KTM, Husqvarna and GasGas parent Pierer Mobility, its share price falling again fractionally after release of disappointing half-year profits mid-week.
In Italy, Milan’s FTSE MIB index picked up slightly too, on a 0.1% gain. But national powered two-wheeler flag carrier Piaggio’s share price flat-lined.
| Currency: euro | Price | Week | Month |
| BMW | 75.11 | +2.7% | -2% |
| Volkswagen | 190.70 | +3.2% | -1.4% |
| Pierer Mobility | 60.10 | -0.3% | -3.8% |
| Piaggio Group | 2.47 | N/A | -2% |
JAPAN – CHINESE WHISPERS
Apart from Western nations, concerns throughout Asia and the Far East were focused on a fresh lockdown spate in China (see below) and its impact on the already-struggling Chinese economy. Japanese companies, including all four listed motorcycle manufacturers, are heavily dependent to greater or lesser extents on China-sourced components and assembly operations.
Unsurprisingly, Tokyo’s Nikkei 225 stock index took a second weekly hammering, this time 3.5% down. The darkening American mood wouldn’t have helped either, as worries that the global economic outlook is faltering increase.
| Currency: yen | Price | Week | Month |
| Honda | 3673 | +0.5% | +9% |
| Yamaha | 2846 | -1.9% | +10.4% |
| Suzuki | 4947 | +2.4% | +14.5% |
| Kawasaki | 2603 | -1.8% | -1.6% |
INDIA – BIDDING TIME
Indian stock market negativity improved, as Mumbai’s BSE Sensex 30 reduced a previous weekly loss to just 0.1%. But the two biggest indigenous bike producers — Hero and Bajaj — still wore dunce’s hats.
India’s entrepeneurial giants are watching the situation in China closely, hopeful of facilitating production transfers. Apple, which currently makes all its iPhones in Chinese contract plants, is known to be interested. And Honda, which already has a huge wholly-owned motorcycle manufacturing presence in India, would like to limit its dependence on Chinese affiliates.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 2825.15 | -0.1% | +2% |
| Bajaj Auto | 4030.90 | -0.6% | +0.4% |
| TVS Motor | 1025.85 | +7.5% | +8.2% |
| Eicher Motors | 3422.10 | +2% | +10.8% |
| Mahindra | 1315.95 | +3.2% | +6.5% |
CHINA – COVID BLUES
At the root of a flare in economic fear factor worldwide was the Chinese government’s decision to impose a total lockdown on more than 20 million of its citizens in the south-western megacity of Chengdu, after a new Covid outbreak had been detected. The effect on export-led industries based there will be assuredly enormous.
Shanghai’s SSE Composite index and the blue-chip CSI 300 plunged again, respectively by 1.5% and 2%. However, Chinese motorcycle manufacturers were relatively unscathed, simply because none of them are domiciled in Chengdu.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 27.75 | +2.2% | +40.3% |
| Zongshen | 7.03 | +5.6% | +5.7% |
| Sundiro | 2.54 | +1.6% | +7.6% |
| CETC (Jialing) | 15.95 | +18.1% | +23.8% |
| Lifan | 4.64 | -8.8% | -6.5% |
| Loncin | 4.96 | -0.4% | +3.3% |
| Linhai | 8.95 | +0.4% | +3.5% |
| Guangzhou Auto | 13.94 | -3.8% | -8.1% |
| CFMoto | 162.68 | +2.4% | +6.7% |
| Xinri E-Vehicle | 22.76 | -4.7% | +23.9% |
| Currency:Â HK dollar | Price | Week | Month |
| Jianshe | 5.48 | -1.8% | +1.9% |