Baby boomers seems to be in short supply in Japan too. Worried about
declining interest in motorcycles among young Japanese, Honda Japan aims to
cut domestic motorcycle prices to year 2000 levels in a bid to attract new customers.
According to Honda, prices will drop by 10 to 30 percent. >
The price cut will be implemented gradually as models are upgraded or new models rolled out and will be achieved by moving production to low cost Asian countries and by using cheaper parts. Cynics may interpret this as Honda trying to say in a clever way they’ll be making lower quality, cheaper bikes, but that’s not necessarily the case.
Honda holds a 48 percent market share in Japan, but that’s a market that declined by 27 percent in 2009 alone, and crumbled from 3.29 million motorcycle sales in 1982 to 380,000 last year. It’s not clear what effect, if any, this will have on American motorcycle prices but its an important first step in acknowledging that lower costs and simpler products are the key to expanding the two-wheeled market. That’s the reverse of recent Honda policy, which has seen prices skyrocket as models moved into specific niches at the expense of general utility.
via Daily Yomiuri