Prompt Decision-making, Timely Development,
and Timely Launches
The European motorcycle market entered a boom period due to expectations for the EU (European Union) that began at the end of the 1980s, and in 1990, annual sales exceeded 700,000 units. However, the political, monetary, and economic crisis in Europe from the fall of 1992 to 1993 dampened the unified economy. As the whole of Europe fell into recession, demand for motorcycles began to shrink. At the same time, the decline of the moped and the rise of the scooter also brought change.
However, Europe at this time, with motorcycle ownership of approximately 21 million units, had a traditional motorcycle culture and solid latent demand from a large base of enthusiasts. Demand bottomed out due to the rise of scooters and revision of the license system, and combined with manufacturers' development war, demand began to rise. In addition, the overcrowding of urban traffic and revisions to licensing systems in France, Italy, Spain, and other countries (automobile license holders became eligible to ride motorcycles up to 125 cc) also helped increasing demand.
At that time, Japanese manufacturers suffered from a relative decline in competitiveness due to the sharp appreciation of the yen. European manufacturers began to fight back, and manufacturers from emerging Asian countries entered the market. Large motorcycles, a specialty of Japanese manufacturers, had seen their share of the European market drop from 80% to 70%.
With an eye on the European market environment, Honda established Honda Europe Motorcycle (HEM) in Rome, Italy, in 1996 to oversee its European motorcycle business. The No. 1 position Honda held in the motorcycle market was unshakable, but its shrinking share in the European market was alarming. To overcome this situation and maintain its position as the leading motorcycle company in the European market in the future, the motorcycle division was spun off from Honda Motor Europe (HME) in the U.K. Its mission was to strengthen the foundation of the company as a leading European motorcycle company through prompt decision-making, timely product development, and timely launches.
HEM oversaw motorcycle production for HII and MHSA and sales in 10 European countries, and established an HRE-Rome office, where scooter development was moved from Honda R&D Europe (HRE), a research and development center in Germany, and where SED collaboration (sales, production, and development) for scooters would be handled.
The European motorcycle market is divided into two areas: the FUN, high-value-added motorcycle for hobbyists, and the commuter motorcycle for everyday use. In 1998, HEM debuted the Hornet, a large FUN model, in Europe. This was the first overseas production of an inline 4-cylinder road sports model by a Japanese manufacturer. The Hornet was a hit, selling 25,000 units a year and gaining the No. 1 position in Europe in 2001. Production of six large FUN models including the Hornet was transferred from Japan to HII in 1998, contributing greatly to Honda business in Europe.
Hornet (600 cc 1998 model)
European Platform Strategy Realizes Top European
Motorcycle Sales
In 1996, following the introduction of a law allowing automobile drivers to ride 125 cc bikes and stricter modification regulations for 50 cc motorcycles, Honda took the lead in expanding its lineup of registered scooters above 125 cc. The following year, the company announced its policy of converting all models to four-stroke engines.
In order to enhance the product lineup in a short period of time, a European platform strategy centering on a new engine and frame was established. The plan was to launch three models, at a rapid pace of one model per year. To achieve this, a common platform was adopted, with a frame and engine that could accommodate wheel sizes from 12" to 16" to suit European tastes, and a common muffler, air cleaner and swing arm. The lineup consisted of the SH125/150, a large-wheel model in high demand mainly in Italy, the @125/150, which proposed a new design, and the Dyla125/150, a low-cost sporty model.
The first model, the @125/150 that launched in 2000, was inspired by the swarms of scooters trying to get ahead in the congested city of Rome. The target values were also simple: No. 1 in environmental performance, preempting EURO 2 (European motorcycle emission regulations), and No. 1 in fuel economy and riding performance. The development of the core engine and core frame, which formed the axis of the platform, began with the creation of an engine that combines high output (100 hp per liter) with low fuel consumption, and a frame rigid enough to ride with stability on the cobblestones of Rome. The HRE-Milan office was in charge of the design and conducted interviews with over 300 people. The team was thoroughly committed to faithfully reproducing the quality demanded by the home of design. Furthermore, a high local procurement rate of 90% was achieved, and the @125/150 was widely accepted by people in Europe as a European production model, especially in Italy. In its launch year, the @125/150 surpassed the wildly popular Vespa ET4, to become the third most sold model in Europe.
Sales of the second model, SH125/150 launching in 2001, exploded in Italy, becoming the No. 1 selling model in the country. The concept was to pursue the best size for commuters in Rome, and in the big-wheel (16-inch) category, the SH125/150 aimed to be the Best Scooter for "Centro." The SH125/150 was indeed very popular among commuters in Rome. The team's goal of the best size and the fuel-efficient engine performance developed for the @125/150 was especially appreciated by many users.
The @125 was developed as the first model from the European platform strategy.
The SH125 was designed in the pursuit of the best size for people commuting in Rome.
SH300i Heralds a New Era in European Scooters
The SH125/150 quickly became popular as a town commuter, but at the same time, a segment of riders preferred 250 cc and larger scooters. These riders commuted from the suburbs to the city via highways. Large scooters were good on highways, but their size was too big for city congestion and full parking lots lined with motorcycles.
To address this problem, the 300 cc SH300i with large wheels, was launched in 2007. The development team believed that as a high-end model in the SH series, it needed packaging that combined elegant styling that would blend in with the European cityscape with a high-quality ride that would enable the bike to ride smoothly over cobblestones. Applying this to the technical challenges, the team had to achieve unprecedented levels of engine displacement, heat generation suppression, downsizing, cooling capability and chassis rigidity.
The engine employed a racing bike mechanism and took on the challenge to reduce size and weight by eliminating the balancer to increase displacement, which improved acceleration. The frame was fitted with large 16-inch wheels, and to ensure a wide flat floor, the frame was shaped like a large U to accommodate the various components in an innovative layout. In addition, the rigidity of the frame was increased by adding a backbone to the U-shaped section that was inspired by a truss structure to create stability when riding. Heat, an inherent part of a high-output engine, was tackled using every possible measure, including a structure that allowed cooling water from the radiator to pass through the oil pan, and layered structuring of air inflow ducts and the battery box.
The SH300i was an immediate hit, becoming the best-selling scooter in its class in Italy in 2007. Its success was so influential that other companies followed suit, creating a new category of 300 cc large-wheel scooters. Developing new markets sometimes begins with self-denial of well-established technologies.
This also unearths the latent needs of users and pioneers a new era.
The SH300i created the 300 cc large-wheel scooter category in the European scooter market.
The Success of PCX Using the Honda Global Network
Manabu Nishimae, then Chief Operating Officer for Regional Operations (Europe), said: “Scooters used for daily transportation need to be affordable, fuel-efficient, and easy to use. We also have to cater to the differences in tire sizes and other needs in different countries. To remain competitive in this environment, we need to constantly turn new proposals into products.”
The PCX, launched in Europe in 2010, is the embodiment of this Honda concept. The PCX was manufactured at Thai Honda Manufacturing (TH)*3 and exported to Vietnam, Indonesia, European countries, the U.S., South Korea, Australia, Brazil, Japan and other countries. Manufacturing of the PCX was later expanded to Indonesia, Vietnam, Brazil, and China, utilizing the Honda global network. In the ASEAN*4 and South American regions, it aimed to create a new, high value-added, high end market, while in Europe, the U.S., Japan, and other markets, the PCX was presented as an affordable compact commuter that offered a good balance of environmental performance, comfort and high quality.
The PCX’s 4-stroke 125 cc engine featured an idling stop system that improves fuel economy compared to other 125 cc class models. It also complied with emission regulations in Japan, Europe, and the United States with its electronically controlled fuel injection system (PGM-FI) and muffler catalytic converter. Its advanced styling and fuel-efficient and environmentally-responsible engine, combined with an affordable price, gained the support of many users.
- Thai Honda Manufacturing Co., Ltd.
- Association of South-East Asian Nations
The PCX, produced in Thailand and introduced in Europe through the Honda global network.
Globally Leading Introduction of FUN Models Inheriting
the European Motorcycle Culture
The X-ADV, designed by HRE-I, was introduced to the European large FUN model market featuring a new concept.
In the 2010s, as large fun models being introduced to Europe became a trend, the world's motorcycle manufacturers exhibit new products at EICMA (the Milan Motorcycle Shows).
Honda had long regarded Europe as an important marketing venue for new large FUN models. The X-ADV was introduced as a new concept in this context. The X-ADV was an unprecedented model that combined an adventure model excelling at riding on unpaved roads with a commuter model suited to urban riding, thanks to its easy-to-maneuver body size, easy-access luggage box and other user-friendly features.
Honda R&D Europe Italy (HRE-I), a development center in Rome, Italy, that focuses on motorcycle design, turned the X-ADV from a concept to an actual design. Utilizing the platform of the NC series, HRE-I introduced a concept model that could establish a new category that combined elements of adventure models and city commuter models. First unveiled at EICMA in 2016 and launched the following year in 2017, the X-ADV has been well received by European customers and has consistently been a bestseller in the Honda lineup.
The X-ADV’s styling has since influenced the motorcycle identity of Honda, including the design of the ADV150/160, ADV350, and NT1100.
In addition, the Africa Twin, which Honda announces and sells in Europe as a launchpad, as well as the NT1100, Hornet, and Transalp, are steadily expanding market share and increasing their presence in Europe.
The efforts of planning for the next generation of models, amidst growing environmental needs and the economic crisis in Europe triggered by the financial crisis in Greece in 2009, have steadily borne fruit, and Honda global resources have enabled the company to respond quickly to changes in markets around the world, and increase demand in Europe.
Africa Twin
