While car sales have been hit hard by the Coronavirus disaster, there are small signs of a recovery in the Japanese domestic motorcycle market. According to the Japan Mini Vehicle Association, new motorcycle sales in April 2020 (125 to 250cc) were up 2.0% YOY to 7,772 units.
This is the fourth consecutive month of YOY growth. Some observers believe this is a rebound from the decline following the October 2019 sales tax hike. This growth also is partly due to the growing need by commuters to use motorcycles as an alternative to public transportation to avoid coronavirus.
Shipments by the four OEMs, including class 1 mopeds (under 50cc), in March were up 7.3% YOY to 36,800 units. By contrast, April sales were down 11.4% YOY. However, compared to four-wheeled vehicles, the decline is limited.
On the other hand, India and Southeast Asia, which are the main market for motorcycle OEMs, are likely to take some time to recover due to the shutdown of plants, temporary closure of dealerships and the economic downturn. In terms of global demand, there is a tendency to view May and June as the bottom of the sales decline. The market recovery in emerging countries and the development of new demand in developed countries. If these two factors work together, a new stage of growth may open.
Source: Nikkei Business (The original article was partially revised by the author.)
PSR Analysis: Japan’s domestic market is extremely small in terms of global scale, but Japanese brands account for about half of all motorcycles in the world. It’s a welcoming situation that Japan, the home turf for motorcycles, is growing even slightly.
Recent media reports say that cars and motorcycles are a growing form of transportation for the new era, but I’m somewhat skeptical of this. Certainly, the personal use of cars and motorcycles rather than crowded public transport is a protection against COVID-19. But that cannot be the main reason for the revival of the motorcycle market.
The appeal of motorcycles as a product remains a major theme that needs to be developed. Increasing the number of riders who previously were not interested in motorcycles will be the key to the recovery of the domestic motorcycle market. There is still a lot of work for the industry to do in order to link the recent slight upward trend in the domestic market to longer-term growth. PSR
Akihiro Komuro Is Research Analyst, Far East and Southeast Asia, for Power Systems Research
