April 8, 2010

Motorcycle Market Trends in Japan:
Results of JAMA’s Fiscal 2009 Survey

The Japan Automobile Manufacturers Association (JAMA) is pleased to release the results of the survey it conducted on Japan’s motorcycle market in fiscal year 2009 (ending March 31, 2010). Targeting new-model purchasers primarily, JAMA conducts this survey in odd-numbered years in order to track changes in Japan’s continuously evolving motorcycle market.

Based on 5,575 responses, the results of the survey of new-model purchasers are summarized as follows, as are the results of two adjunct surveys, one on consumer perceptions of motorcycle use and the other on motorcycle dealer outlets. More detailed information is provided below for reference.

(1) Survey of New-Model Purchasers

  • Motorcycle ownership among young men and women in their late teens and twenties declined. The decline was sharpest among young women in their twenties, with users in this group shrinking to half the level reported in the 2007 survey. On the other hand, ownership increased among men and women in their fifties or older, confirming once again that motorcycle ownership is more common among older adults than younger ones (average owner age: 47.4 years).
  • Replacement demand accounted for over half (57%) of the total number of new-model purchases. The decline in first-time purchases continued, thereby revealing a sustained trend.
  • Of survey respondents, 22% reported having experienced tandem riding on expressways, up from the 19% recorded in 2007.
  • Respondents who indicated they wanted to continue riding motorcycles in the future totalled 92%, up from the 89% recorded in 2007.

(2) Survey of Consumer Perceptions of Motorcycle Use

  • For respondents who were first-time purchasers of a motorcycle, determining factors in their purchasing decision were economic and utilitarian (“good fuel efficiency,” “low maintenance costs,” “shortened travel time”). Among respondents who had never owned a motorcycle, a large percentage asserted that motorcycles were appealing for their “easy mobility, even in congestion,” although many also indicated that the actual purchase of a motorcycle held no appeal for them whatsoever.
  • Some 60% of owner as well as non-owner respondents concurred with the statement “Motorcycles excel in environmental performance,” with 20% of all survey respondents affirming that they would consider a first-time or replacement motorcycle purchase if “more eco-friendly models” were introduced.
  • Respondents who were motorcycle users confirmed the continuing shortage of motorcycle parking bays in large cities including Tokyo (particularly in its western wards) and Osaka.

(3) Survey of Motorcycle Dealer Outlets

  • Dealer respondents stressed the importance of a “trustworthy atmosphere,” “explanations that are easy to understand,” “thorough explanations of maintenance requirements and procedures,” and “clear indication of vehicle purchase prices and related costs,” concurring, on these criteria, with customer expectations (see below).
  • Customer respondents in this survey indicated that their expectations when visiting dealer outlets were a “trustworthy atmosphere,” “explanations that are easy to understand,” “thorough explanations of maintenance requirements and procedures,” “clear indication of vehicle purchase prices and related costs,” “availability of test rides,” “ample product-viewing space,” “extensive model displays,” and ”accessory displays.” The survey revealed, however, discrepancies between the degree of value placed on stipulated criteria and the extent to which customers were satisfied with dealer performances in fulfilling those criteria.

 

(Reference)
JAMA’s Fiscal 2009 Motorcycle Market Trends Survey

1. Survey Format and Frequency

JAMA’s survey on motorcycle market trends, carried out by means of questionnaires posted online and (when applicable) distributed by regular mail service, is conducted biennially in odd-numbered years to track changes in the motorcycle market.

2. Basic Description of the Fiscal 2009 Survey

  New-Model Purchasers Survey Consumer Perceptions Survey Dealer Outlets Survey
Questionnaire distribution channel Postal service Online Online Postal service
Survey targets New-model purchasers Motorcycle owners and non-owners in all age groups (teens through sixties and older) Consumers in all age groups (teens through sixties and older) Exclusive dealerships, multiple-brand dealerships
Survey area Nationwide Nationwide Nationwide Greater Tokyo, Osaka
Valid responses 5,575
(53.9% response rate) 		2,514
(including 689 responses from non-owners) 		2,514
(including 689 responses from non-owners) 		146
(28.9% response rate)
Survey period Aug.-Sept. 2009 Nov. 2009 Nov. 2009 Nov.-Dec. 2009

3. Survey Results

(1) New-Model Purchasers Survey

  • New-model purchases by young men in their late teens and twenties continued to decline, as did such purchases by young women in the same age groups—with purchases by women in their twenties showing a particularly dramatic fall, to half the level reported in the 2007 survey.
  • While replacement demand accounted for over half (57%) of the total number of new-model purchases, the share of first-time purchases (15%) continued to decline (down from 18% in 2007). Meanwhile, purchases after a hiatus of non-ownership as well as “additional unit purchases” remained at roughly the same levels recorded in 2007.
  • The leading criteria for a motorcycle purchase were “style and design,” “good fuel efficiency,” and “easy handling,” in that order.
  • Intended motorcycle uses were primarily “commuting to work or school” (45%) and “shopping and errands” (30%). Nevertheless, motorcycle use for “commuting to work or school” continued to show a decline, while use for “shopping and errands” continued to rise. Use for “touring” also registered an increase.
  • Average monthly mileage was 270 kilometers, up from 254 km in the 2007 survey.
  • Respondents who indicated they wanted to continue riding motorcycles in the future totalled 92%, up from the 89% recorded in 2007 and thus underscoring the firmly established trend of longtime motorcycle use by individual owners.
  • While the most common reasons cited for a hypothetical discontinuation of motorcycle use were the loss of parking space and financial constraints, half of the respondents nevertheless indicated that they would continue to ride motorcycles even after getting married, having children, or experiencing other major life changes, or after losing their current models to theft or accident.

(2) Consumer Perceptions Survey

  • Perceptions Regarding Motorcycle Purchasing Appeal
    • For respondents who were first-time purchasers of a motorcycle, determining factors in their purchasing decision were economic and utilitarian (“good fuel efficiency,” “low maintenance costs,” “shortened travel time,” “easier to use than bicycles”). On the other hand, many among those respondents who had never owned a motorcycle indicated that the actual purchase of a motorcycle held no appeal for them whatsoever.
    • Whereas many younger respondents who had recently bought a motorcycle indicated that their purchasing decision was motivated by the enjoyment they associated with motorcycle riding, including a “sense of freedom,” a “feeling of speed,” the “exhilaration of riding,” and the “sheer fun of operating a motorcycle,” younger respondents who had owned a motorcycle for a number of years tended to favor the practicality of motorcycle riding, citing such merits as “shortened travel time,” “not having to worry as much [relative to car ownership] about parking space,” “the ability to enjoy a broader range of activities,” and “easy mobility, with good maneuverability.”
    • Among middle-aged respondents, on the other hand, no such differences in perception as those outlined in the preceding paragraph were registered.
  • Perceptions Regarding Motorcycles’ Environmental Performance
    • Of all the respondents in this survey, 60% affirmed their belief that motorcycles offer excellent environmental performance, with only about 10% replying negatively with respect to the eco-friendliness of motorcycles.
    • Among respondents who did not own motorcycles, the number of those who affirmed their perception of motorcycles as offering excellent environmental performance was lower, at just over 40%, while those who replied negatively stood at 10%, with close to 50% of respondents claiming lack of knowledge in this regard.
    • Asked just when they developed an awareness of motorcycles’ environmental performance, the leading response was “over five years ago” (38.1%), with the second most common response being “just recently” (29.2%).
  • Perceptions Regarding Motorcycle Parking Space Availability
    • Survey results indicated a pronounced dissatisfaction with the status of motorcycle parking space availability in the vicinity of places of residence. A very significant number of respondents residing in Tokyo, Osaka, and other large cities indicated that “the number of parking bays provided is limited and it is always difficult to find a place to park.”
    • With respect to the availability of parking bays when on a motorcycle outing, owner respondents likewise indicated especially severe shortages in Tokyo (particularly in its western wards), Osaka, and other large cities

(3) Dealer Outlets Survey

Respondents in this survey—motorcycle dealers as well as customers—were asked about what they valued the most (or, in the case of dealers, what they placed the greatest emphasis on) in terms of the ambience at dealer outlets, service during sales and maintenance operations, information sources and topics, essential requirements with respect to sales/maintenance activities, and customer-sales staff interaction at those outlets.

  • Dealer Survey
    • Ambience at Outlet Facilities:
      In their responses to this survey, the criteria most emphasized by dealers, with respect to customer visits to their facilities for both vehicle purchases and vehicle maintenance, were a “trustworthy atmosphere” and their outlet being “easy to enter alone” and “comfortable for women,” in that order.
    • Service Priorities during Sales/Maintenance Operations:
      Topping the list of services to be provided during sales and maintenance transactions were “thorough explanations of maintenance requirements and procedures,” followed by “complete customer service.”
    • Information Delivery Sources and Topics:
      For sales, the most important information source cited by dealers was the “outlet Web site,” while the most important post-sales information topic was “information on regular vehicle maintenance.”
    • Key Requirements in Sales/Maintenance Activities:
      A key sales criterion was the “clear indication of vehicle purchase prices and related costs,” while the chief concern with respect to maintenance operations was “advanced technical competence.”
    • Most Valued Elements in Customer-Sales Staff Interaction:
      Primary emphasis was placed, in both sales and maintenance transactions, on “explanations that are easy to understand.” The runner-up criteria were “good knowledge of the products themselves” and “use of courteous language.”
  • Customer Survey
    • Ambience at Outlet Facilities:
      With respect to both purchasing and maintenance visits to dealer outlets, respondents’ satisfaction levels with the “trustworthy atmosphere” and “easy to enter alone” criteria were lower than the value they placed on these criteria.
    • Service Priorities during Sales/Maintenance Operations:
      In this area too, satisfaction—whether in regard to purchasing or maintenance transactions—with “thorough explanations of maintenance requirements and procedures” was lower than the degree to which respondents valued this criterion.
    • Information Procurement Sources and Topics:
      In relation to both purchasing and maintenance, respondents’ satisfaction levels generally exceeded the levels of importance they attached to criteria in this category, among which “outlet Web site” and “information on regular vehicle maintenance” ranked particularly high.
    • Key Requirements in Sales/Maintenance Activities:
      The criterion that registered the greatest discrepancy between customer expectations and customer satisfaction was “competitive pricing.”
    • Most Valued Elements in Customer-Sales Staff Interaction:
      Whether in relation to vehicle purchasing or maintenance, respondents’ satisfaction was low in regard to “explanations that are easy to understand” and “good knowledge of the products themselves,” compared to the importance they placed on these criteria. A similar discrepancy emerged for “familiarity with motorcycle riding and customizing,” in terms of motorcycle users’ expectations and satisfaction levels with respect to dealer outlet services during vehicle maintenance.

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