Global perspectives - November 2016

Motorbike rivals make their peace

In the early 1980s, Honda and Yamaha revved up their engines in the battle to become the biggest motorcycle manufacturer. This competitive streak bred serious rivalry in the industry worthy of the moniker “the H-Y war”. But this rivalry may have just come to a screeching halt. The two companies have decided to bury the hatchet for the greater good of the Japanese economy. Kind of.

The two have started discussions to strike a deal for Honda to produce original equipment parts for Yamaha by the end of 2018, a transaction that highlights the brand value of the latter company. This alliance strictly concerns the “class-1 category” of two-wheelers that includes scooters with 50cc engines or electric motors.

These truce talks would most likely not have taken place in the past, when Honda’s response to Yamaha launching its bid to become the world-leading motorcycle manufacturer was “We will crush, squash, slaughter Yamaha!”

The initiative comes as a response to the dwindling sales of motorcycles in Japan owing to the diversification of short-range transport, meaning power-assisted bicycles and mini-vehicles. In addition, there are also challenges pertaining to safety and emissions.

As a result of the dramatic fall in motorcycle sales in the country in recent years, only four makers remain standing from the 50 that sprung up after World War Two.

This treaty does not extend beyond the Japanese market. But a collaboration to develop motorcycles together in an effort to popularise them once more is giving Yamaha a manufacturing discount and improving Honda’s plant capacity.

Let’s just hope neither company is being taken for a ride.