March 26, 2011

Japan Earthquake and its Effect on Motorcycle Industry & Market



The Japan quake, tsunami, and nuclear radiation issues in Japan have seriously affected the world motorcycle industry, especially since Japan is home to the “Big Four” motorcycle manufacturers: Honda, Kawasaki, Suzuki, and Yamaha.


How can bike manufacturers operate in a shortage of electricity power, or blackouts, due to the failure of nuclear plant in Fukushima. On the other hand, Japan is going to suffer from a big drop of motorcycle sales and also output, which may turn to another disaster for motorcycle market since the financial crisis in 2008. No turning back in coming years soon. We look forward to seeing the report in second and third quarter of sales reports & production output in July and August this year. Stay with me here!


Honda states that it will halt production at all factories, including the Kumamoto Factory, where Honda produces the CBR600, the VFR1200F, the DN-01 and the Super Cub. Honda reported that production activities at the Kumamoto Factory will be suspended March 15-20.
Honda also stated it would co-operate with “rolling electricity blackouts,” which will help slow electricity usage. The rolling electricity outages are being done to avoid a total electric blackout.

Yamaha also released a statement, reporting its factories were not damaged by the quake. Yamaha continued to keep it’s factories open, and will re-evaluate the situation. Yamaha also reported it will co-operate in rolling electricity blackouts.

Suzuki released that it suspends production until March 17. On that day, Suzuki management would decide when to return to production.

Kawasaki has not released any information regarding the earthquake, and if it had any impact on the motorcycle manufacturer.




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