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3. COMPETITION PREDICTED TO SHARPEN IN MOTORCYCLE MARKET.

In 2000, the market of motorcycle was brisk after being in the doldrums in 1998. In 1999, sales totaled 487,759 units. In the first 11 months of 2000, sales already reached 790,463 units.

Increase was recorded by almost all brands with the exception of Vespa. Honda has not been unseated as the market leader, followed by Yamaha and Suzuki. Sales of Suzuki rose to 149,000 in 2000 from 95,000 in 1999. Yamaha reported sales at 175,000 in the first 11 months of 2000 exceeding sales in the whole of 1999 of 98,000.

Real competition was only between Yamaha and Suzuki as Honda seemed to be unaffected. In 1998, Suzuki relegated Yamaha as the second largest brand in sales. The Shogun cub type contributed to the success of Suzuki that year. But the success was short lived as Yamaha came with full force to regain the market with its sport type.

Table - 1 Motorcycle sales by brands, 1997 - 2000
 Brand 1997 Share 1998 Share
 (Units) (*) (Units) (*)

Honda 856.876 47,6 264.777 61,4
Suzuki 378.584 21,0 84.358 19,6
Yamaha 469.791 26,1 70.890 16,5
Kawasaki 80.060 4,5 8.315 1,9
Vespa 15.755 0,8 2.608 0,6
Total 1.801.066 100,0. 430.948 100,0

 Brand 1997 Share 1997 Share
 (Units) (*) (Units) (*)

Honda 275.195 56,4 433.054 54,9
Suzuki 95.143 19,5 149.229 19,0
Yamaha 98.434 20,2 175.158 22,3
Kawasaki 15.663 3,2 28.138 3,7
Vespa 3.324 0,7 539 0,1
Total 487.759 100,0 790.463 100,0



(*) January - November

Source: Gaikindo/Pasmi/Data Consult

The strong sales in 2000, however, were still far below the booming year of 1997 when sales totaled 1,801,70 units. The shrinkage in sales in the past three years was caused by the crisis. The buying power of the people has been weakened by the crisis while the prices more than doubled.

Sales were especially sharp in the last four months of 2000 peaking in November. In December sales were estimated to remain high. See the following table.

Table - 2 Monthly sales of motorcycles, 2000
Month Volume of-sales Share
 (units) (%)

January 40,498 5.1
February 59,981 7.6
March 65,956 8.3
April 53,334 6.7
May 71,537 9.1
June 65,977 8.3
July 73,671 9.3
August 80,501 10.2
September 81,893 10.4
October 92,432 11.7
November 104,683 13.2
Total 790,463 100.0



Source: Gaikindo/Astra/Data Consult

The cub type is higher in demand in the market as it could be conveniently used by female motorists. Its clutch system is also more convenient.

Table - 3 Motorcycle sales by types, Jan - Nov. 2000
Type Volume of sales (units) Share (%)

Cubs:
Honda 390,701 49.4
Kawasaki 25,344 3.2
Suzuki 143,358 18.1
Yamaha 147,559 18.7
Subtotal 706,962 89.4
Business:
Honda 15,867 2.0
Suzuki 4,259 0.5
Yamaha 1,639 0.2
Subtotal 217,765 2.8
Sport:
Honda 26,486 3.4
Kawasaki 2,794 0.4
Suzuki 1,612 2.0
Yamaha 25,960 3.3
Subtotal 56,844 7.2
Scooter:
Vespa 4,884 0.6
Total 790,463 100.0



Source: Gaikindo/Astra/Data Consult

The table shows only sales figures for Japanese brands and Italian Vespa which have long dominated the domestic market. Now potential competitors have come from China. Chinese makes focus especially on lower market segments. Originally, the producers of Japanese brands were confident they would not be affected by the presence of Chinese competitors, but now they have cause for concern especially with the success of Kymco and Kanzen in grabbing a bigger slice of the market in 2000.

Japanese brand producers raised allegation that Chinese producers have illegally used Japanese design for their components. The much cheaper prices offered by the Chinese makes has succeeded in helping them grab a substantial share of the market. This year competition is expected to be more deadly.
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Comment:3. COMPETITION PREDICTED TO SHARPEN IN MOTORCYCLE MARKET.
Publication:Indonesian Commercial Newsletter
Article Type:Brief Article
Geographic Code:9INDO
Date:Jan 16, 2001
Words:704
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