LinkedIn Stokes Discussion on Europe, Asia
As requested from LinkedIn subscribers, I’ve assembled the numbers associated with Japan’s export of powersports vehicles to Europe in 2009. I've also addressed two related queries.
EUROPE
As previously reported, Japan’s four major powersports vehicle manufacturers – Honda, Kawasaki, Suzuki and Yamaha – in 2009 cut production 47 percent compared to 2008. Exports to the U.S. were slashed 57 percent.
According to figures supplied by the Japan Automobile Manufacturers Association, the Big Four’s exports to 27 European Union nations in 2009 totaled 201,519 units, down compared to shipments of 356,301 units in 2008.
Specifically, exports to France in 2009 totaled 49,853 units, down compared to 71,487 units in 2008; Germany, 31,972 units, down compared to 43,133 units; Italy, 35,568 units, down compared to 77,086 units; Spain, 13,082 units, down compared to 31,764 units; and the United Kingdom, 19,170 units, down compared to 27,179 units.
Production in Japan ExportsTo Europe Exports to the U.S.
2009 …644,901 201,519 160,655
2008 … 1.226 million 356,301 372,362
2007 … 1.232 million 449,824 455,139
2006 … 1.334 million 448,659 596,507
2005 … 1.332 million 449,748 567,367
“Is it in your opinion that U.S. people consider bikes less necessary in a downturn, while the love affair of Europeans with bikes is more solid?” asks Jose from LinkedIn.
In my opinion, the U.S. market has never viewed the motorized two-wheeler as a necessary mode of transportation. However, I don’t believe consumers in Europe think of cycles as a necessity.
Big displacement bikes are popular both in Europe and the U.S., but selling scooters in the U.S. happens to be like selling motocross bikes and ATVs in Europe. Popular in one place, but of a limited audience in another place.
Something Europe has that does aid two-wheeler sales: 1) licensing tiered by age and experience, and 2) extremely congested metropolitan areas.
Italy’s market remained “stable” in 2009, but only because of an incentive program that stoked scooter sales and left motorcycle sales to plummet 20 percent.
U.S. market figures set to be released later this month should show, at best, performance equal to what was experienced in Italy, Germany and the UK.
ASIA
Another LinkedIn subscriber, Gabriele, asked about Japan’s powersports vehicle exports to “Asia”.
Any good businessman knows the benefits of manufacturing a product close to its intended customer base.
So, while high-margin, relatively limited demand vehicles – the sportbikes, cruisers and touring machines – continue to be sent to customers in the U.S. and Europe from factories in Japan, in-country manufacturing has proved an asset for OEM’s doing business in many of the markets across the globe where millions of customers demand smaller, lower priced models (China, Indonesia, India and Brazil make up the four largest markets for powered two-wheelers).
Look at Honda: the OEM says its global cycle and ATV sales in 2009 totaled 15,042,000 units. Of that total, more than 11 million units were sold in Asia (mainly Indonesia) and more than 1 million units were sold in South America (mainly Brazil) – two spots on the globe where Honda has staked manufacturing facilities to help satiate demand.
So, in context of how Japan’s OEMs have changed their exports to nations like India, Viet Nam, Thailand, Philippines, Malaysia, Indonesia, etc. – Since Honda, Kawasaki, Suzuki and Yamaha now supply many of those larger markets in Asia with product built in-country, their export numbers from Japan are limited and of course not a reflection of the market situation in those target export nations.

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), Honda’s motorcycle production and sales subsidiary in India, recently introduced the 110cc CB Twister. HMSI plans to sell about 220,000 CB Twister annually!

Guido,
thanks a lot! my company is a two-wheelers oem component supplier (mainly scooters and bikes produced in Europe and I'm looking for to address a B.Plan strategy for the next five year, so if the trends stay as they like now we have to look outside Europe's facilities to growth our quotes.
What do you think about it? Gabriele
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