I'm not sure which is the more interesting side of this story: the business angle on the fact that Honda is discounting motorcycle MSRPs in Japan to new millennium prices, or the Wall Street Journal's observation that the move was made "...in an effort to halt young people's growing disinterest in motorcycles."
Each of the 45 or so Honda models sold in Japan will undergo a 10 to 30 percent price drop over the next three years. The lower pricing will be supported by increasing production from Asian countries where costs are lower, and incorporating more parts from inexpensive overseas sources. For some perspective, the Super Cub 50 will become the equivalent of around $450 cheaper, while while the 250cc Forza scooter will enjoy a discount of roughly $1,350.
Seems to me like this move could pay off for the Japanese market, as long as changes in quality aren't too readily perceptible by consumers. And if the tweaked pricing works for Japan, wouldn't it be great to get more American youngsters on two wheels using similar price strategies?
Sources: About.com Motorcycles Forum, Wall Street Journal
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- 2010 Honda Interstate, Sabre, Stateline Photo Gallery
- 2009/2010 Honda Lineup
- 2010 Honda Fury Photo Gallery
- 2008 Honda VTX1800F Review
- Honda Announces 2011 PCX Scooter, Includes Lil' Ruckus in '11 Lineup
Photo © Honda; click to enlarge
North America, and probably all of Western Europe are ‘developed’ or ’saturated’ markets. Because of that, and the fact that bikes are toys & luxuries, those markets are sustainable at best and only then if things get back to the way they were a couple years ago. At this point that looks bleak.
The developing markets are Japan to a degree, most certainly China & India and maybe parts of South America. Those markets have motorcycles as a necessity and mode of transportation because very few people can afford a car…much less find any place to park it or drive it. By a not so coincidental a turn of events, they are also responsible for the fairly healthy profit Honda realized globally..no thanks to this side of the pond.
This price move may be a very valuable experiment for Honda Motor. If it works…onward & upward! That’s my SWAG contribution!
They really need to do something in the domestic market here in Japan. There is quit a premium right now for a Honda bike. Plus there model line-up is not what it used to be. It has been pretty limited recently.
For instance Kawasaki just came out with a couple of new 400cc bikes here, the ER-4n and the Ninja 400 which are on sale for about $7,090 and $7,329 (US). The closest competition Honda has is their CB400 at $8,118 – $10,148.
I know these bikes are not really targeted at each other but that was what I was just looking at the other day and thought I’d point out.
I have been a Honda guy since I began riding, and still have a couple now, but unless things change, I may be looking else where next time around.
Hi Les,
It’s very deliberate that we see model offerings being reduced. The logistics required to maintain many, many variations on the same model, while not insurmountable, don’t make as much sense as they MAYBE used to.
I think the reduction in model, trim, options & color is just starting. Far less confusing for customers too in the long run.