Business Week: October 11, 1999
Up Front: Road Races
Battle of the Muscle Bikes
Honda has declared war on its rivals in the U.S. over the hot market for ``sportbikes.' Sales of high-performance motorcycles should surpass 76,000 this year, up 27% from 1998, predicts industry analyst Don Brown of DJB Associates.
Honda's weapon? A newly designed, more powerful CBR929RR, a response to archrival Yamaha's YZF-R1, introduced in 1998. The Yamaha model's design, speed, and handling boosted the company's share from 12.2% to 18.2% in 1999, while market leader Honda's 25.2% share moved up only slightly, to 27.4%, says Brown. Honda is blunt in its intentions for Yamaha: ``It's time to put them in their place again,' says Ray Blank, vice-president of sales for Honda motorcycles. So Honda is holding the new model's price at last year's $9,999. Yamaha's 2000 model remains at $10,199. Honda also has to be concerned about new bikes from Kawasaki and Suzuki.
Can Honda hold off the surging Yamaha marque? ``You can never count out Honda,' says Brown.
By Rob Doyle
EDITED BY ROBERT McNATT
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