Evaluation of Engineering Markets - Assignment Example

The Motorbike Market Introduction The history of Motorbikes can be traced back to the mid 19th century. It is during this time that Pierre Michaux, a French blacksmith made the first motorbike, in the 1860s (Holmstrom 2009, p.2). However, it is reported that many people did not embrace Motorbikes during this time since many people preferred vehicles as their mode of transport. However, the trend started changing at the turn of the twentieth century following the move by Japanese companies such as Yamaha, Honda, Suzuki, and Kawaski to start manufacturing petroleum driven-engines that looked more efficient, according to Ash (2013). Since then, many people all over the world have embraced the motorbikes as a means of transport. Report indicates that about 200 million motorbikes are currently in use as a mode of transport in different countries across the globe. This accounts for about 33 motorbikes for every 1,000 persons. Research also indicates that third world countries in the Asian continent lead in terms of motorbike usage, which stands at about 58% with the exception of Japan where cars still lead as the preferred mode of transport (Ash 2013). China, for example, had about 54 million motorbikes by 2006 that were already in use. At the same time, China’s motorbike production currently stands at about 22 million per year (Holmstrom 2009, p.8). China is followed closely by its neighboring India where an estimated 37 million motorbikes are in use. The situation is the same in Europe where many people have embraced motorbikes as a means of transport. This is unlike in the early days when most Europeans used to shy away from using motorbikes as it was viewed as a means of transport for the poor. The U.K. is one of the European countries where the use of motorbikes has widely been embraced. In this regard, it is reported that nowadays a majority of the U.K. citizens used motorbikes as a means of transport. In fact, it is said that one hardly walks for more than a mile before coming across a motorbike in the U.K. today. The number is also expected to increase as more people continue to embrace the use of motorbikes as a mode of transport in the U.K (Holmstrom 2009, p.8). Recent legislation that are likely to affect the future of motorbike market Ash (2013) notes that, despite the advantages associated with the motorbike as a mode of transport, it has also been marred by many challenges. For instance, report shows that the number of accidents caused by motorbikes in Europe has increased significantly over the last few years, according to Holmstrom (2009, p.9). This has prompted the European Union to legislate a number of laws aimed at restoring sanity in the way motorbikes are used in the country. These laws are likely to affect the motorbike market in Europe. In fact, some countries like the U.K. have attempted to resist most these laws terming them a sham. One such is the motorbike test law, which is aimed at encouraging additional training among young riders. This new legislation has changed the rules for obtaining a motorbike license in the U.K. despite resistance by the British government arguing that the new legislation being imposed by the European Union is very complex and not achievable (Holmstrom 2009, p.2). According to the new legislation, any British national intending to ride a motorbike of the road is required to finish a Compulsory Basic Training (CBT) course before he or she can be allowed to go out on the road (Ash 2013). Ash (2013) notes that wit this law and a provisional license, one can only be allowed to ride a moped with L-plates. However, any person who has attained the age of 16 years and want to ditch the L-plates so as to move to the first four full licenses referred to as AM, he or she will be required to sit for a theory test and a practical test (Ash 2013). This aims at testing an individual’s ability to maneuver of off-road. Once the test AM test has been passed, the person is allowed to proceed to an A2 test, particularly for those who are 19 years of age (Ash 2013). It is also after passing the test that an individual is allowed to proceed to a full A license which is the final test before one is allowed to ride big motorbikes on British roads. This law took effect as from 19 January 2013, according to Ash (2013). This new law is likely to affect the future market of motorbikes in the U.K. since it will bar many people from acquiring the motorbike. This is because the law restricts the usage of motorbikes according to age and experience in using a motorbike. It is noted that demand for motorbikes was very high in the U.K. before the EU imposed the new legislation of Britain (Holmstrom 2009, p.15). This is because anybody who knew how to ride a motorbike regardless of whether they pose a license were being allowed to go to British roads. However, this has totally been changed by the new law, which came into effect on 19 January 2013 (Ash 2013). This is because it has barred even those who had been intending to purchase a motorbike for use as a mode of transport because the law now requires all riders to have a category A license to be allowed to ply the U.K. roads. At the same time, the new legislation has prevented many people from using their motorbikes on roads for fear of arrest due to lack of a license required by the new law. In this regard, it becomes apparent that the new legislation is likely to impact negatively of the future of the motorbike market in Britain and the entire Europe. The social, political, economic, and technological trends of motorbike over the next 5 years The world has indeed witnessed faster growth of motorbikes over the last few decades. In fact, the growth is still projected to increase over the next five years. This is due to social, political, economic, and technological changes taking place. For instance, the growth of motorbike use as a mode of transport has mainly been attributed to economic reasons. This is because motorbike, unlike other modes of transport such as vehicles is very costly due to the amount of fuel consumed by cars. As a result, many people have found it cheap to revert to motorbike due to its low fuel consumption, which make it very cost-effective (Ash 2013). The U.K. like many other European countries is currently suffering from recession following the recent financial crisis that has adversely affected the economy. This has made life harder for the U.K. citizens most of whom are finding it hard to travel on cars due to high fuel prices (Cossalter 2006, p.9). The situation is the same in most countries. Therefore, many people are considering buying motorbikes for transport use because of their low fuel consumption. This is particularly evident in countries such as Uganda, Nigeria, India, China and Kenya and many other Asian countries where motorcycles have become a common mode of public transport due to its low fuel consumption and ability to maneuver all terrains (Cossalter 2006, p.9). Therefore, since the cost of fuel is projected to increase in the coming years because of hard economic time, it follows that there will be an increase in demand for motorbikes all over the world (Cossalter 2006, p.14). The world keeps on changing socially and culturally due to globalization. Initially, there were some cultures, which did not embrace the use of motorbike as a means of transport. For instance, there are a number of cultures, which barred women from riding motorbikes because of the fact that it is seen as an automobile meant for men. However, the cultures and attitudes keep changing in which nowadays-even women ride motorbikes. In fact, more and more women are expected to begin riding motorbikes a trend likely to increase the market demand for motorbikes (Cossalter 2006, p.11). It is also noted that people many people around the world have began viewing motorbikes not just as a means of transport but also as a lifestyle commodity. In this regard, many people are continuing to buy motorbikes, which are fashionable. For instance, there has been a trend towards the move to purchase sporting motorbikes because they look fashionable and lavish. In this regard, as a result, it is projected that the demand for sporting motorbikes is likely to increase over the next five years due to socio-cultural changes being experienced in the world today (Cakebread 2008, p.14). The world has experienced high technological advancements over the last few decades. Automobile industries are among the areas that have experienced a lot of technological changes particularly in manufacturing. Technological advancements are also still expected to continue in the future particularly in the motorbike industry. It is an acknowledged fact that the increase in fuel prices is a big concern to motorcycle manufacturers, as well as consumers. Therefore, many consumers have been pushing for the manufacture of fuel efficient motorbikes so as to relieve people from the burden of high cost of living reverberated by the increase in fuel prices. As a result, it is likely that many motorbike manufacturers are likely to heed to the call of consumers and begin manufacturing motorbikes with low fuel consumption (Crowe 2010). In fact, just like some automobile companies have begun manufacturing electric cars, it is also probable that the trend will be followed in the motorbike industries over the couple of years. It is also likely that motorcycle-manufacturing industries will soon consider introducing a solar powered motorbike, which is very green and efficient (Crowe 2010). Politics is also likely to come into play as regards the usage of motorbikes. For instance, the use of motorbike as a means of transport has been criticized by many as causing many accidents some of which are fatal. As a result, it is likely that some governments might introduce laws similar to the one already in place in the U.S. that concerns license for riding a motorbike in an attempt to minimize the number of accidents caused by motorbikes on roads all over the world (Cossalter 2006, p.21). Furthermore, the issue of environmental pollution resulting from greenhouse emissions have been a major concern to world leaders today. This is because greenhouse emissions have been blamed for the global warming being witnessed all over the world today. In fact, motorcycles also ranks among the leading emitters of greenhouse emissions. In this regard, it is likely that these politics is likely to come into play concerning emissions from motorbikes, which is likely to affect the industry and the market at large (Cakebread 2008, p.16). Conclusion The use of motorbikes as a means of transport has indeed increased significantly over the last decade. Many streets all over the world are full of motorbikes particularly in developing countries where it has been adopted as means of public transport. In fact, many economies currently depend on the motorbike as a key contributor the gross domestic product. The industry also provides numerous jobs to people in many countries where it is adopted as a public means of transport. Motorcycle industry is also projected to continue experiencing significant growth in the near future. This is because apart from the fact that it cheaper compared to other means of transport such as vehicles, it is also cost-effective in terms of fuel consumption, which is good for the many countries experiencing fuel shortage. Therefore, it is very important for the U.K. government to promote this industry in all manners possible since the industry will help lift the country from hard economic turmoil facing the country. However, it is also very crucial for motorcycle manufacturers to consider making motorbikes that are economical in terms of fuel consumption. In addition, the motorbikes should be less pollutant in order to receive backing from world leaders and environmentalists in the coming years. References Ash, K 2013, New motorcycle test regulations explained, viewed 10 April 2013, http://www.telegraph.co.uk/motoring/motorbikes/9801020/New-motorcycle-test-regulations-explained.html. Cakebread, B 2008, Motorcycle apprentice: matchless - in name and reputation. Veloce Publishing Ltd: London. Cossalter, V. 2006, Motorcycle dynamics. Lulu: London. Crowe, P 2010, The next motorcycle trend may be no trend at all, viewed 10 April 2013, http://thekneeslider.com/the-next-motorcycle-trend-may-be-no-trend-at-all/. Holmstrom, D 2009, BMW motorcycles. MotorBooks International: Oxford. Read More