Motorbike sales to be flat this year and next|on slowdown, political situation: AP Honda boss

The director of AP Honda Co said domestic sales volumes this year and next would be about the same, with little or no growth from 2012. He pointed to the economic slowdown, natural disasters and political situations as factors that have affected the motorcycle industry.
“Domestic sales of motorcycles hit their highest in 2012 because the economy was good. But this year, because of the economic and political situations and the floods, the market should remain stable. If it does grow, it will be by a very small margin,” Alaksh said.
His company last year held the biggest market share of 75 per cent or 1.63 million units, followed by Yamaha at 18 per cent and Suzuki at 3 per cent.
Tourism is also a factor affecting sales, he said, as his customer base consists partly of the service industry. “When the number of tourists falls, money circulation in the service industry will be affected, which means the purchasing capacity of our customers drops as well.”
He said sales of Honda motorcycles passed 1.58 million units from January to October. He expects to sell about the same number, 1.58 million units, next year and so will not increase production capacity, to keep dealers from overstocking.
Meanwhile in Milan, Honda displayed six new models and seven upgraded ones for 2014 at the Italian city’s 71st International Motorcycle Exhibition (EICMA), a four-day event that ended yesterday.
“EICMA is the most important exhibition volume-wise in the world of motorcycles. It has almost 140,000 exhibitors, more than 500,000 visitors and a wide variety of customers more oriented towards motorcycles. It’s a showcase for new models and innovations,” Vito Cicchetti, commercial director of Honda Italy, told Thai media during a recent interview in Milan.
Some of the new Honda bikes are manufactured in Thailand. These include the CBR300R, upgraded to feature more power and torque from a bigger engine, and the CBR650F, a stylish middleweight machine with a new in-line four-cylinder engine. They will be exhibited in Thailand for the first time during the Motor Expo at the end of this month.

Recovery will be slow
Shingo Kimata, president of Honda Italy, said up to 30 per cent of customers chose models with dual-clutch transmissions (VFR1200F, Crosstourer, Integra, NC750X, NC750S, CTX700 and CTX700N), which enhance smoothness in gear shifting.
In Italy, the motorcycle market shrank from 320,000 sales in 2002 to 160,000 in 2012 because of economic problems and an unstable political situation.
“Volume-wise, we don’t expect a big recovery from the previous year,” Kimata said. “But Europe is a mature market. I still believe this market is the market of creation, a market of brands – surely we [will] see the recovery of the market, and European people … will create new demand,” said Kimata.
Of the motorcycle market in Italy, 25 per cent is big bikes and 75 per cent scooters. Honda has maintained the top share of the small-bike market for the past 22 years.