Author: Diana M. Cuyler

Buy this Multibagger Auto auxiliary stock for a target price of Rs 315: ICICI Securities

Motorcycle Price

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Investment

oi-Vipul Das

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Posted: Friday April 22nd 2022, 04:33 PM [IST]

Minda Corporation Ltd (MCL) is a key player in the international automotive industry and a leading supplier of OEM auto parts. With operations in Indonesia, Vietnam, Uzbekistan, the United States of America and Japan, the company now caters to major passenger vehicles, commercial vehicles, motorcycles and scooters, off-road vehicles and Tier 1 companies in India. The company’s shares on the NSE fell from Rs 96 to the current market price of Rs 270 in one year, representing a multibagger yield of 180.81%. However, the stock is up 36.50% year-to-date (YTD), while the stock is up 110.86% in the previous six months. Over the previous month, the stock has gained 37.20% and over the past five days it has climbed 19.81%. ICICI Securities issued a call to buy the stock with a target price of Rs 315 over the next 12 months.

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  • Gradually stepping up the game in the EV space with new product development in-house. Potential value of 2-W electric kit seen at Rs 16,000-20,000/unit compared to current value of 2-W ICE kit at Rs 4,000-4,500/unit.
  • Envisaged increase in kit value through increased content of existing products as well as new product offerings. On-board car manufacturers like Ola Electric (sole smart key supplier), Hero Electric, Ampere, among others.
  • History of core OEM industry growth in the past with an additional commitment to grow 10-15% ahead of industry volumes in the future.

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  • Strong orders (~Rs 4,232 crore lifetime orders for 9MFY22; replacement and new business combined; VE order at Rs 843 crore) provide good revenue visibility. We are creating a CAGR of 23.8% of FY21-24E consolidated sales.
  • Strong EV backlog with two new EV OEMs (Hero Electric and BMW) added to the list marking all the big names in the EV space as customers.
  • The acquisition of JV’s stake in Stoneridge (for Rs 161 crore) will be accretive to margin and yield ratios. Consequent consolidated RoE, RoCE seen at 17-19% by FY24E. EBITDA margins are expected to improve to 12.2% by FY24E.

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ICICI Securities said “MCL was one of our first finds with a share price nearly 3x since our launch in December 2020, significantly outperforming the Nifty Auto Index. We retain the Buy rating in healthy growth prospects, going forward. MCL value at a revised target price of Rs 315, i.e. 25x P/E on FY24E EPS of (previous TP Rs 220).”

A slower-than-expected recovery in industry volumes and a slower-than-expected improvement in margins are the main risks for the stock according to the brokerage.

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The security was selected in the brokerage report of ICICI Securities. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

For investment-related articles, business news and mutual fund tips

Article first published: Friday, April 22, 2022, 4:33 p.m. [IST]

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2022 Honda Hawk 11 on sale in Japan, RM46,597

Motorcycle Sale

Launched at the Osaka Motor Show last month, the 2022 Honda Hawk 11 retro cafe racer is now on sale in Japan, priced at 1.397 million yen (RM46,597). Currently only available in the Japanese domestic market, the Hawk 11 is unlikely to make it to Malaysia as the current tax and duty structure for large capacity motorcycles would make it prohibitively expensive.

For comparison, the Honda CB1100RS, another retro motorcycle offering from Honda, the CB1100RS, is priced at 1.4 million yen (RM46,697) in Japan, but when it was sold in Malaysia in 2019 , you paid retail RM75,999 for it. So, as a rough guide, if Malaysian distributor Boon Siew Honda decides to offer the Hawk 11, expect the price to be higher than the RM80,000 price tag.

The power of the Hawk 11 comes with a parallel-twin engine powered by Honda’s PGM-Fi, the same engine used in the Honda CRF1100L= adventure tourer and Rebel 1100 cruiser. The Hawk 11 gets 102 hp at 7,500 rpm. min and 104Nm of torque at 6,250rpm, the chopper displacing 1,082cc, going through a six-speed gearbox and chain final drive.

Equipped with a ride-by-wire throttle, the Hawk 11 has four riding modes – Sport, Standard, Rain and User – affecting power delivery, power limit and engine braking via Honda Selectable Torque Control (HTSC) . All the necessary information the pilot needs is displayed on an LCD screen inside the cockpit, under the old-fashioned cafe racer fairing.

Equipment specs on the Hawk 11 are minimal with non-adjustable telescopic front forks and a preload-adjustable monoshock in the rear. Braking is done with two hydraulic discs on the front wheel with a single disc on the rear with the Hawk 11 rolling on 17-inch wheels.

Honda claims the Hawk 11 weighs 214kg, with a seat height set at 820mm and 14 liters of fuel carried in the tank. LED lighting is used throughout the Hawk 11 while performance parts specialist Moriwaki provides an optional chrome exhaust.

Romanian food retail turnover could exceed RON 142 billion in 2021

Motorcycle Business

Food retail turnover increased by almost 10% compared to 2019 and was 97% above the level of 2011, reaching the level estimated in last year’s analysis dedicated to this market, of nearly 130 billion lei in 2020.

For 2021, KeysFin analysts estimate to exceed the threshold of 142 billion lei, due to the increase in demand but also to increased inflationary pressures.

The food retail sector had a total workforce of up to 225,000 employees in 2020, most of whom worked for PROFI ROM FOOD SRL (a company wholly owned by MEP RETAIL LUXCO SARL in Luxembourg), respectively nearly 18,000 people ( after an annual advance of 10% in 2020).

The number of companies recorded a 1% increase compared to 2019, but the trend of market consolidation is evident, with the number of companies declaring their financial results 19% lower than in 2011, reaching 53, 6 thousand companies in 2020.

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LIDL SURPASSES KAUFLAND IN THE YEAR OF THE PANDEMIC

LIDL DISCOUNT SRL, a company directly controlled by WE INTERNATIONAL GMBH, has become the market leader in food distribution after the largest annual growth, both nominal and percentage, of the top 10 (of 3.1 billion lei, respectively by 32%), to 12.9 billion lei in 2020.

The former leader, KAUFLAND ROMANIA SCS fell to second position after an annual increase of 960 million lei, respectively 8%, with a turnover of 12.8 billion lei in 2020. The company, controlled directly by KAUFLAND INTERNATIONAL ERSTE GMBH, remained the most profitable player, with a net profit of 970 million lei, respectively 19.7% of the total.

In third position, in terms of turnover, is CARREFOUR ROMANIA SRL with 9 billion lei, respectively 7% of the total, followed by PROFI ROM FOOD SRL (with 6.8% of the total) and MEGA IMAGE SRL which has maintained its market share of 5.6% of the total in 2020.

The top 10 food retail companies achieved a cumulative turnover of 73 billion lei, generating more than 56% of the total turnover in 2020.

2021, FOCUS ALSO ON ENVIRONMENTAL IMPACT REDUCTION MEASURES

With the increase in turnover, profitability also increased, so that in 2020, the net profit of local companies recorded an increase of 14% compared to the previous year and was 334% higher than that of 2011, reaching 4.9 billion lei.

The top 10 players recorded a cumulative net profit of 2.5 billion lei, almost 52% of the total in 2020. The net result (net profit minus net loss) improved significantly, from a loss of more than 1 billion lei in 2011 to net profit. positive result of 4.1 billion lei recorded in 2020.

“Since the start of the pandemic in 2020, food retailers have launched major investment projects: from inventory management, vast information, prevention and accountability campaigns to efforts to sanitize spaces, l expansion of store networks, the opening of warehouses dedicated to online sales and investments in home delivery. We are now seeing more attention paid to measures to reduce environmental impact: from optimizing energy consumption and more careful waste management procedures, to reducing or even eliminating use of plastic,” said Diana Florescu, economic analyst at KeysFin, one of the largest suppliers. of business information solutions in Romania.

HIGHER DEMAND AND HIGHER PRICES

Retail trade turnover volume excluding trade in motor vehicles and motorcycles (adjusted series) increased by 10% in 2021 compared to 2020 (for the food, beverage and tobacco retail segment, there was an increase more than twice as low, by 4.2% in 2021 compared to 2020).

Wholesale trade increased in 2021 by 20% compared to the previous year, while that of food, beverages and tobacco increased by 11.3%, according to data from the National Institute of Statistics. .

THE ROMANIAN EASTER CONSUMER BASKET: MORE EXPENSIVE AND… SMALLER

According to the latest INS data, the consumer price index of food products, which represent 33% of the Romanians’ consumption basket, increased in March 2022 by 11.2% compared to the same month in 2021. The largest annual price increases of over 20% in the food category in March 2022 were for potatoes (36.5%), oil (32.3%), flour corn (24.4%) and flour, 21.5% above the March 2021 level.

Despite the price increases, Romanians are preparing for Easter and although they are buying smaller quantities of food and are much more attentive to sales offers, given that increases in income have not kept pace with large increases in price, they manage to take advantage of the holiday period and keep their Easter traditions.

Royal Enfield Meteor 350 2022 launched in 3 different colors; Check price and specs

Motorcycle Price

Indian two-wheeler manufacturer Royal Enfield has finally released one of the new colors of its highly anticipated and feature-laden Meteor 350 bike for 2022. The entry-level trim of the vehicle comes in two new colors – matte green and blue, while the top supernova variant comes with a brand new red color option. The company has confirmed that these new color options in the bikes will be sold alongside the current color options.

The company not only introduced the new color options for all bike enthusiasts, but also increased the prices of the cruiser motorcycle. According to official reports from Royal Enfield, the three variants of the new RE Meteor 350 have now become more expensive, which means that customers have to pay the extra amount between Rs 4,000 and Rs 5,000. Apart from the Meteor 350, the company has also increased the price of one of the best-selling Himalayan Scram 411 and the Himalayan adventure motorcycle.

Take a look at the price list of the Meteor 350 variants

If you are planning to buy the basic Fireball variant of the Meteor 350, you have to play a part of Rs 2,05,844. While its second Stellar model is priced at Rs 2,11,924 and the top supernova variant at Rs 2,22,061.

2022 Meteor 350 Specifications

The company has launched the RE Meteor 350 on the all-new J platform identical to the new generation Classic 350. The bike features a 349cc single-cylinder air-oil-cooled engine, which generates 20.2 hp of power and 27 Nm of power. maximum torque. The bike comes with a 5-speed gearbox.

As for the features, the motorcycle is equipped with retro style circular headlights with LED DRL, teardrop fuel tank, large windshield, LED tail light, a USB charger and a digital speedometer, which displays general information such as fuel capacity, speed. , RPM among others. It also comes with RE’s Tripper navigation system for turn-by-turn navigation.

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Electric motorcycle brand Horwin to test niobium-rich batteries

Motorcycle Brand

As the market for electric motorcycles continues to evolve, manufacturers and startups are looking for ways to increase competition. From interchangeable battery arrays to solid-state batteries, engineers and designers are discovering that there are multiple paths to electric vehicle supremacy. For German electric motorcycle and scooter brand Horwin, the answer lies in denser batteries that recharge in a fraction of the time.

To achieve these goals, Horwin is partnering with Brazilian niobium specialist CBMM to develop niobium-enriched lithium-ion batteries. Sourced primarily from Brazil, niobium is frequently used to strengthen alloys thanks to its titanium-rivaling Mohs hardness and iron-like ductility. Under the Horwin deal, CBMM and Toshiba will develop fast-charging lithium-ion batteries using niobium-titanium oxide (NTO).

Compared to Toshiba’s current lithium titanium oxide (LTO) anodes, the NTO units will offer three times the energy capacity and reduce recharge intervals to 10 minutes. Once available, Horwin will test the NTO batteries in a prototype similar to its CR6 production model. The current CR6 houses a 6.2 kW (8.3 horsepower) motor and reaches up to 93 miles on a single charge. The company expects the NTO power units to significantly increase this figure.

“With the expertise and pioneering spirit of CBMM, added to our team highly qualified in the development of new solutions, it is expected that the motorcycle with a niobium battery will be available on the Brazilian market as early as 2024”, explained Pricilla Favero, CEO of Horwin Brazil. “We are working so that soon everyone will be able to use an electric motorcycle with ultra-fast charging. In addition to this charging differential, niobium batteries bring advantages in terms of safety and autonomy, since they allow up to to 20,000 charges in a relatively wide range, which alone is the biggest advancement in recent times.

This, however, is not the only joint venture that CBMM has undertaken. In February 2022, the Brazilian company signed a deal with resurgent electric motorcycle brand Lightning. While CBMM is still developing niobium-rich batteries for Lightning, the team aims to develop a lightweight and highly efficient battery for high performance applications. For Horwin’s purposes, CBMM will focus more on reliability and range than performance metrics.

“Being a very stable element, it enables safer and more efficient operations,” revealed Rogério Marques Ribas, CBMM’s battery program manager. “In addition, thanks to its more open crystalline structure, which facilitates the intercalation of lithium, it allows a complete recharge in less than ten minutes, without damaging the battery.”

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There’s an ex-Steve McQueen “Sandcast” 1969 Honda CB750 for sale

Motorcycle Sale

This is a rare 1969 Honda CB750 “Sandcast” which is historically significant for two reasons, firstly it was the world’s first “superbike” and secondly it was purchased new by Steve McQueen through his Solar Productions production.

Although there were many motorcycles before the CB750 to which the term superbike was applied retroactively, such as the Brough Superior SS100 and the Vincent Black Shadow, the Honda CB750 was the motorcycle for which the term was first used. time.

Quick Facts – The Honda CB750 “Sandcast”

  • The Honda CB750 was developed in the late 1960s and released in 1969 in response to a demand from American motorcycle dealers for a larger capacity motorcycle that would better compete with the likes of Harley-Davidson, Norton, Triumph and BSA.
  • With its 750cc SOHC inline-four engine, four carburettors, integrated 5-speed gearbox, front disc brake, electric starter, excellent reliability and zero oil leaks, the CB750 marked a generational shift in motorcycle design. And it was affordable.
  • Honda executives had at first been skeptical that the motorcycle would sell in numbers, and so instead of gearing up for mass production, they initially relied on sand casting for the crankcase . These early “sandcast” bikes are now highly collectable.
  • The CB750 you see here was purchased new by Steve McQueen’s Solar Productions, the company he used for much of his filming and the entity through which he purchased many of his cars and motorcycles.

The UJM: a paradigm shift in motorcycle design

The transverse four-cylinder engine with the cam at the top, with unitary construction and a quartet of carburettors had been done on production motorcycles before of course, most famously by the Italians of MV Augusta.

Built with unitary construction, this inline four-cylinder engine with its SOHC and four carburetors would revolutionize the motorcycle industry.

What Honda did was produce a similar engine that was affordable for the average Joe, and it revolutionized the motorcycle world.

The other major Japanese motorcycle manufacturers quickly copied the transverse four-wheel design and launched their own superbikes, namely Kawasaki, Suzuki and Yamaha. These motorcycles became known as “Universal Japanese Motorcycles” or “UJM” for short.

The transverse four-cylinder engine became a de facto standard for many Japanese superbikes and this trend continues to this day.

The Honda CB750

In the late 1960s, American Honda motorcycle dealers were clamoring for a high-capacity motorcycle to compete with Harley-Davidson, Triumph, Norton and the other popular British motorcycle brands that sold tens of thousands of motorcycles each year in the United States. United. .

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Unlike many of its contemporaries, the CB750 had an electric starter, no oil leaks and excellent reliability. All this has made it a very easy bike to live with on a daily basis.

Honda was a little skeptical of the concept, but they accepted it regardless and began development of an all-new motorcycle.

Honda engineers, who had years of Grand Prix motorcycle design experience under their belt, designed a new inline-four engine that would be mounted transversely in the frame. It was built with unitary construction and it had an electric starter, 5-speed gearbox, no oil leaks and excellent reliability.

Despite their initial skepticism, Honda was initially unable to build enough to meet demand, the CB750 became one of the best-selling large-capacity motorcycles of its time, and it nearly killed the industries of British and American motorcycling in the process.

Ex-Steve McQueen 1969 Honda CB750 shown here

This Honda CB750 is a bit more special than most, it was bought new by legendary Hollywood actor Steve McQueen through his production company.

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This now restored CB750 was purchased new by Steve McQueen through his production company.

McQueen was famous for being a top notch tanker, collecting cars, motorcycles, planes, 4x4s and just about anything that moved and made noise.

This bike is from the first year of production, making it a desirable “sandcast” model. During the first year of building the CB750, Honda relied on sand casting for crankcases, later models would use mass production techniques.

For the first 45 years of its life this bike had only two owners, the first being Steve McQueen and the second being a long term owner who took care to preserve the bike.

It has just completed a two-year restoration which was completed in February 2022 and it is now offered for sale on Bring A Trailer.

If you want to know more or register to bid, you can click here to visit the list.

The bike comes with original sales literature, a letter from Honda Motor Company, a copy of an invoice from American Honda, remanufacturing records, Honda tool kit, a yellow-on-black California license plate and a proper California title in the seller’s name.

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Images courtesy of Bring A Trailer

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Ben has had his work featured on CNN, Popular Mechanics, Smithsonian Magazine, Road & Track Magazine, the Official Pinterest Blog, the Official eBay Motors Blog, BuzzFeed and many more.

Silodrome was founded by Ben in 2010, in the years since the site has become a global leader in the alternative and vintage automotive sector, with millions of readers around the world and several hundred thousand followers on social networks.

Generating money through a motorcycle trading business

Motorcycle Business

Some of the motorcycles purchased

The motorcycle trading business known as “Okada”, which started as a part-time engagement, is now seen as a worthy business by the operators. With a motorcyclist delivering between N2,000 and N4,000 per day, the Okada business generates at least a tangible sum of money per day. ADEOLA TUKURU reports.

Reports indicate that the motorcycle business activity contributes to the economy of those engaged in the sector and, by extension, to the Gross Domestic Product (GDP) of the country.

The use of motorcycles for commercial purposes had been on in some parts of the country as a popular means of commercial transportation across the country was in response to hard times.

This means that economic growth cannot sustain the booming population growth rate. Furthermore, Nigeria produces around 1.5 million graduates of tertiary institutions every year without any plans to engage them profitably after school.

Many of them, after trying to find a job for a number of years, are frustrated and ready to accept any job, including on Okada, just to keep the body and mind together.

For Rasheed Oyekanmi, a college graduate had high expectations after graduating from college, but after years of searching for a job, his hope for a better life was dashed, he became disillusioned but rather than engaging in crime, he resorted to Okada to get away with it. a source of income.

According to him, after five years of looking for a job, “I decided to accept Okada’s job. It is with her that I feed myself, wife and son. So if a better job comes along, it’s welcome and if not, I’m happy with it.

easy money

Many people; young and old, educated and illiterate are easily attracted to the Okada business because of the ease with which money is earned.

According to the Chairman of ACOMORAN, River Park Branch, Abuja, Muhammad Bello, many people join the association because Okada constituency is a business that earns operators money quickly to meet their immediate needs.

He said a runner from Okada earns between 13,000 and 15,000 naira every week which has helped a great deal in easily paying school fees for their children, sponsoring their siblings and getting started. in agriculture.

Another branch chairman of the Federal Capital Territory, Maniru Lawal, who has sworn never to leave work for another company, with determination an Okada pilot can earn around 100,000 naira in a month.

According to him, “I spent about 16 years in this Abuja and Okada was my source of income. It is a business from which I can get up to 100,000 naira in a month. If I borrow money from someone, I can assure him that within a month I will pay it back.

The advent of okada

The advent of the okada in the national transport system began in the early eighties, their operation has grown enormously to reach a force that could be relied on.

The names generally reflected what motorcycle transport stands for. In the Cross River/Akwa-Ibom axis, it was nicknamed “akauke” meaning “are you going .” In Ibo land, he was nicknamed “Ina-aga,” meaning, “Are you going.”

These names clearly illustrate that once the traveler was ready, the motorcycles were also ready to transport passengers to their destinations in no time. In Yoruba land it was called “tatakpukpu», an onomatopoeia representing the sound of the motorcycle.

For the natives of Edo State, Okada Air was the fastest way to travel from Benin to Lagos, just as a motorbike was the fastest way to travel between two points.

It is for this simple reason that the Edos dubbed the mode of transport motorcycle okada. Of all the nicknames mentioned above, only okada seems to have survived and is generally accepted in Nigeria as the official nickname for commercial motorcycle operation.

Easy movement

One of the characteristics of life in urban centers is the endemic traffic jam in which residents lose productive work hours and business appointments daily.

To facilitate quick travel and through ravines and potholes on city roads, many locals ride Okada without worrying about the drain it causes in their purses.

Environmental factors

Environmental factors have also contributed to the growing interest of Nigerians in Okada’s business. The reduced size of Lake Chad and the prolonged dry season have made herding and farming in the northern part of Nigeria less lucrative than before. Therefore, many young people from the North migrate to the South to become Okada riders.

Easy acquisition

Acquiring a motorcycle for commercial purposes is a bit easy for those who are determined and ready to take risks. Usually, there are dealers who are willing to lease the bikes out to riders who pay weekly or monthly installments.

The checks revealed that most of those who get the motorbikes on hire-purchase usually pay it back within 18 months.

Many politicians who embark on anti-poverty programs often give motorcycles to the beneficiaries of their gesture. Such gestures have helped many people to become Okada pilots.

Disadvantages

However, despite being a way for unemployed young Nigerians to earn a living, Okada constituency is not without its downsides.

High accident rate

According to Micah and Owagbemi, commercial motorcycles have a higher rate of disabling and fatal accidents per unit of distance than cars and buses. They add: “A 1998 study at Obafemi Awolowo Teaching Hospital, Ile-Ife, Nigeria showed that limb injuries occurred in 79.3% of patients presenting to the emergency department of the hospital. ‘hospital. These patients were linked to commercial motorcycle accidents.

Reduction of the stock of craftsmen

With many artisans abandoning their craft to seek easy money in Okada Ward, a critical sector of the economy is at risk. A number of companies are struggling to employ artisans who are essential to their production. Not only does this hinder business progress, but it also affects the growth of the economy.

Checks further revealed that craftsmen such as tilers and masons are brought into the country from neighboring countries. The implication of this is that while Nigerians complain about unemployment, those who are available are given to foreign nationals.

Insecure

Insecurity has worsened with the increase in the use of motorcycles for commercial purposes. When the insurgency broke out in the north, motorcycles were used by the insurgents to carry out their attacks. A number of state governments have banned the use of Okada in city centers due to the threat they pose to life safety. In many areas of the country, Okada riders are not allowed as they are seen as a means by which vices are perpetrated.

What you need to know before getting into the motorcycle business

1. You must check the strength and quality of the motorcycle you want to buy because it is not all the motorcycle you can use for the business, the quality of the motorcycle determines to a large extent how much you will earn in the home.

2. What is the fuel consumption rate: the fuel consumption rate of the motorcycle should also be considered,

3. State Policy: Maybe check to see if the state you live in allows motorcycle trading. You will agree with me that not all states in Nigeria allow motorcycle trading, for example Lagos State.

4. Verification of integrity: you must ensure that the person you give it to to help you drive must be a trustworthy person, that is, if you do not want to be, you don’t want to ride it yourself that’s very important because most people who collect people’s motorcycle at the end of the day use it however they see fit so as someone who gets into this business, you have to be very careful in this regard.

Has the gas price shock already triggered demand destruction? And where will gas prices go from here?

Motorcycle Price

Following skyrocketing gasoline prices, the question arises as to when demand destruction will set in, where people will start to drive less, take more time to save gas when driving or begin to favor the most economical vehicle in their garage. If enough people do, demand begins to decline and gas stations have to compete for dwindling business. The destruction of demand is what would cause the price to drop further. Are we already there?

The Department of Energy’s EIA measures gasoline consumption in terms of barrels supplied to market by refiners, blenders, etc., not in terms of retail sales at gas stations. The volume of gasoline delivered fell for the third consecutive week. This is unusual at this time of year when gas mileage normally increases during the summer.

The EIA reported on Thursday that gasoline consumption fell to 8.61 million barrels per day in the week ended April 8 based on a four-week moving average (red line), the highest low since March 4, down 2.3% from the same period in 2021 (black line) and down 8.1% from the same period in 2019 (grey line).

Consumers began to react in January.

Note how the last 11 months (red line) followed very closely the pre-Covid period three years earlier (grey line) until they started to diverge sharply, not only in March, but already in mid -January, and have been solidly below the 2019 level ever since.

Gasoline prices began to soar from crashed levels in April 2020. In May 2021, the average price of gasoline across all grades exceeded $3.00 per gallon, a multi-year high, and continued. In November 2021, it reached $3.40 per gallon and paused. Then in early February, it started to skyrocket and hit $4.32 on March 14.

But since mid-March, the price has come down. Now at $4.09, it’s still a nosebleed high but is a bit lower than it was:

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Gas stations don’t lower prices out of the goodness of their hearts. They lower prices because sales are affected and price competition has developed between service stations in an effort to maintain sales volume. And gas stations could lower their selling price without hurting their profit margins, because the costs of their product have also fallen.

The destruction of demand affecting gasoline would then be passed on to demand for crude oil. But crude oil has uses far wider than just gasoline, including the burgeoning petrochemical industry. And a slight drop in U.S. gasoline demand isn’t going to shake global crude oil markets too much.

The price of crude oil has already rebounded again.

WTI crude had climbed to $130 a barrel, then fell back into the $90 range. In recent days, it has changed course again and is now at $106. This is not a good sign for the price of gasoline.

Obviously, there has been some demand destruction, and that may have been enough to bring the price of gasoline down a bit.

But maybe not. Perhaps this destruction of demand was not the cause of the drop in gasoline prices. Maybe they fell for another reason, like the current volatility that has affected everything. The wild dynamics of the commodity markets ensure this.

My guess: gas prices will rise further.

I can see the demand destruction, but right now I doubt it’s large enough to cause a sustained drop in the price of gasoline. I wouldn’t be surprised if the price goes up again. Crude oil prices have already started to climb again. It could be a long process with very volatile and zigzagging prices higher and higher. That’s my guess.

What we know.

Annual gasoline consumption peaked in 2007 then declined over the next five years to 2012 by a total of 6.3%. It then rose again and reached that 2007 peak again in 2016, then again in 2017, and in 2018, and again in 2019, without exceeding it. And then in 2020, consumption collapsed. In 2021, consumption has recovered markedly, but total annual consumption still ends the year down 5.3% compared to 2007!

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But the total number of kilometers traveled by vehicles hits a record every year from 2015 to 2019. And in 2021, despite the slump in 2020, miles driven increased 6.6% from 2007. People are driving more, but they’re using less gas to do so:

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So there are many other factors that play into gas mileage, not just the price. This includes long-term technology trends, such as more fuel-efficient vehicles and the arrival of electric vehicles on a scale now large enough to reduce gas mileage.

Other changes are also impacting gas mileage, some dating back more than a decade, such as the boom in high-rise residential construction in urban centers that has reduced or eliminated fuel consumption. car travel for residents; or the tendency to work from home at least part of the time, which also reduces commuting miles.

The increase in driving holidays during the pandemic has pulled in the opposite direction, which may now have been replaced by flying (domestic leisure traffic is on the rise).

Gasoline consumption is also highly seasonal, making it even more difficult to spot where demand destruction has occurred due to price and where unusual seasonal patterns might be at play.

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Generating Money from Motorcycle Business – Blueprint Newspapers Limited

Motorcycle Business

Some of the motorcycles purchased

The motorcycle trading business known as “Okada”, which started as a part-time engagement, is now seen as a worthy business by the operators. With a motorcyclist delivering between N2,000 and N4,000 per day, the Okada business generates at least a tangible sum of money per day. ADEOLA TUKURU reports.

Reports indicate that the motorcycle business activity contributes to the economy of those engaged in the sector and, by extension, to the Gross Domestic Product (GDP) of the country.

The use of motorcycles for commercial purposes had been on in some parts of the country as a popular means of commercial transportation across the country was in response to hard times.

This means that economic growth cannot sustain the booming population growth rate. Furthermore, Nigeria produces around 1.5 million graduates of tertiary institutions every year without any plans to engage them profitably after school.

Many of them, after trying to find a job for a number of years, are frustrated and ready to accept any job, including on Okada, just to keep the body and mind together.

For Rasheed Oyekanmi, a college graduate had high expectations after graduating from college, but after years of searching for a job, his hope for a better life was dashed, he became disillusioned but rather than engaging in crime, he resorted to Okada as a source of income.

According to him, after five years of looking for a job, “I decided to accept Okada’s job. It is with her that I feed myself, wife and son. So if a better job comes along, it’s welcome and if not, I’m happy with it.

easy money

Many people; young and old, educated and illiterate are easily attracted to the Okada business because of the ease with which money is earned.

According to the Chairman of ACOMORAN, River Park Branch, Abuja, Muhammad Bello, many people join the association because Okada constituency is a business that earns operators money quickly to meet their immediate needs.

He said a runner from Okada earns between 13,000 and 15,000 naira every week which has greatly helped in paying school fees for his children, sponsoring their siblings and getting into farming .

Another branch president of the Federal Capital Territory, Maniru Lawal, who has sworn never to leave work for another company, with determination, an Okada runner can earn around 100,000 naira in a month.

According to him, “I spent about 16 years in this Abuja and Okada was my source of income. It is a business from which I can get up to 100,000 naira in a month. If I borrow money from someone, I can assure him that within a month I will pay it back.

The advent of okada

The advent of the okada in the national transport system began in the early eighties, their operation has grown enormously to reach a force that could be relied on.

The names generally reflected what motorcycle transport stands for. In the Cross River/Akwa-Ibom axis, it was nicknamed “akauke” sense “are you going .” In Ibo land, he was nicknamed “Ina-aga,” sense, “Are you going.”

These names clearly illustrate that once the traveler was ready, the motorcycles were also ready to transport passengers to their destinations in no time. In Yoruba land it was called “tatakpukpu», an onomatopoeia representing the sound of the motorcycle.

For the natives of Edo State, Okada Air was the fastest way to travel from Benin to Lagos, just as a motorbike was the fastest way to travel between two points.

It is for this simple reason that the Edos dubbed the mode of transport motorcycle okada. Of all the nicknames mentioned above, only okada seems to have survived and become generally accepted in Nigeria as the official nickname for commercial motorcycle operation.

Easy movement

One of the characteristics of life in urban centers is the endemic traffic jam in which residents lose productive work hours and business appointments daily.

To facilitate quick travel and through ravines and potholes on city roads, many locals ride Okada without worrying about the drain it causes in their purses.

Environmental factors

Environmental factors have also contributed to the growing interest of Nigerians in Okada’s business. The reduced size of Lake Chad and the prolonged dry season have made herding and farming in the northern part of Nigeria less lucrative than before. Therefore, many young people from the North migrate to the South to become Okada riders.

Easy acquisition

Acquiring a motorcycle for commercial purposes is a bit easy for those who are determined and ready to take risks. Usually, there are dealers who are willing to lease the bikes out to riders who pay weekly or monthly installments.

The checks revealed that most of those who get the motorbikes on hire-purchase usually pay it back within 18 months.

Many politicians who embark on anti-poverty programs often give motorcycles to the beneficiaries of their gesture. Such gestures have helped many people to become Okada pilots.

Disadvantages

However, despite being a way for unemployed young Nigerians to earn a living, Okada constituency is not without its downsides.

High accident rate

According to Micah and Owagbemi, commercial motorcycles have a higher rate of disabling and fatal accidents per unit of distance than cars and buses. They add: “A 1998 study at Obafemi Awolowo Teaching Hospital, Ile-Ife, Nigeria showed that limb injuries occurred in 79.3% of patients presenting to the emergency department of the hospital. ‘hospital. These patients were linked to commercial motorcycle accidents.

Reduction of the stock of craftsmen

With many artisans abandoning their craft to seek easy money in Okada Ward, a critical sector of the economy is at risk. A number of companies are struggling to employ artisans who are essential to their production. Not only does this hinder business progress, but it also affects the growth of the economy.

Checks further revealed that craftsmen such as tilers and masons are brought into the country from neighboring countries. The implication of this is that while Nigerians complain about unemployment, those who are available are given to foreign nationals.

Insecure

Insecurity has worsened with the increase in the use of motorcycles for commercial purposes. When the insurgency broke out in the north, motorcycles were used by the insurgents to carry out their attacks. A number of state governments have banned the use of Okada in city centers due to the threat they pose to life safety. In many areas of the country, Okada riders are not allowed as they are seen as a means by which vices are perpetrated.

What you need to know before getting into the motorcycle business

1. You must check the strength and quality of the motorcycle you want to buy because it is not all the motorcycle you can use for the business, the quality of the motorcycle determines to a large extent how much you will earn in the home.

2. What is the fuel consumption rate: the fuel consumption rate of the motorcycle should also be considered,

3. State Policy: Maybe check to see if the state you live in allows motorcycle trading. You will agree with me that not all states in Nigeria allow motorcycle trading, for example Lagos State.

4. Verification of integrity: you must ensure that the person you give it to to help you drive must be a trustworthy person, that is, if you do not want to be, you don’t want to ride it yourself that’s very important because most people who collect people’s motorcycle at the end of the day use it however they see fit so as someone who gets into this business, you have to be very careful in this regard.

Related

4 Sale / 1983 Honda Gold Wing GL1100: the biggest rocker on the used market

Motorcycle Sale

Have you checked Craigslist/Gumtree/Kijiji/Facebook Marketplace lately? Used bike prices have gone crazy. Completely crazy. I see people selling used bikes way above the MSRP of a new bike, and I see the ads disappear, so I presume they get their asking price.

Maybe they are not. But even if these money-crazed lunatics reduce their bike prices to slightly more reasonable figures before selling, anyone shopping in the used bike market knows that it’s nigh on impossible to find a bargain from our days. With dealer inventory low over the past two years, the supply/demand curve has driven up the price of used machines, and dealers themselves are contributing to the problem. I know of at least two local dealers who have their own salespeople who scour used listings, buy bikes to resell in their stores with inflated price tags. The days of finding a properly functioning machine for $1,000 to $1,500 seem long gone.

However, if you are willing to spend a little more than that, you can find yourself one of the best deals on the used market today: a vintage Honda Gold Wing. While these machines were at the top of the price list in their day, their price has come down significantly in recent years, and a bike like the 1983 GL1100 seen here is now one of the most affordable machines available, practically speaking. They’ve done a complete flip-flop on price, and if you’re looking for a good used bike, you could do a lot worse, because it’s still a machine with a lot of history, and still reliable if properly maintained. .

Look at all that shiny trim. Look at the. If you’re buying a vintage fender, try to buy something with clean, rust-free chrome, as there are a lot of small bits that will take a long time to clean. Photo: Cycle Trader

A tough start

Nowadays, people think of Gold Wings as a bike for long miles or a bike for carrying a passenger (especially if you want to carry a passenger and long miles). This was not always the case. When the original Honda GL1000 debuted in 1975, the flat-four looked like it came from some weird muscle bike. It was a radical departure from the standard Japanese format of parallel-twin or inline-four engines, like something you’d see on a solid European-built tourer, but with extra cylinders grafted in. It was a massive engine for that era, but it wasn’t designed for drag strips like the Z1 900.

Although it looked like a bike brute, this motor was built for serious work, not thrills, and the styling backed it up. The original GL1000 seemed to continue the lines of great British luxury motorcycles like the best from Brough Superior or Vincent. It wasn’t boring, but it wasn’t a bold design either. It felt like a bike you would have raced hard all day, in comfort, and it did.

When buyers discovered what a reliable tourer the original Gold Wing was, they started adding windshields and bags, through the aftermarket at first (Vetter made a lot of money here, but also other companies).

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The GL1100 was available bare from the factory, but most examples came with gigantic bodywork installed. Most owners also added stereos and other accessories. Photo: Cycle Trader

Dressed for success

Honda saw how popular aftermarket fairings and luggage were and began selling its own dressed up version of the Gold Wing when it upgraded to the GL1100 model in 1980. First there was the Interstate tourer , and Honda soon added the Aspencade. These bikes rolled out of the factory with options that would have seemed like science fiction a few years earlier. Pneumatic suspension! Factory stereo! A CB radio, even, to help you dodge the county cops!

As the engine grew, so did the rest of the bike. Honda has always sold a stripped naked version, but the GL1100 never had the same look or muscle bike reputation as the GL1000. The Interstate weighed about 680 pounds dry, depending on the production year you purchased. The Aspencade exceeded 700 pounds. Even the unfaired Standard model weighed nearly 600 pounds before adding fuel.

However, at this point, riders were buying the Gold Wing because it represented the pinnacle of motorcycle touring, and the added weight (and expense) of all the accessories was just the price to pay. The GL1100 was the model that propelled the Gold Wing series into the market position it still holds today, more than 40 years after its introduction, and second-hand prices have remained high for many, many years in because of the reputation of the motorcycle, but also because of its mechanics. reliability. Now those prices have changed.

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The GL1100 was one of the first motorcycles built by Honda in the United States, and this is probably a secondary reason for its enormous commercial success in the United States. Honda actually marketed this as an American-made bike, which no doubt assuaged the conscience of some longtime Harley-Davidson riders when they made the switch. Of course, those Harley riders also left behind Shovelheads, Ironheads, etc., and the reliability of the ‘Wing would have been a huge improvement. Photo: Cycle Trader

Break the miles

When the original Gold Wing made its debut in the mid-1970s, Japanese motorcycles were still building their reputation for reliability. Some of those old classics – the GS-series, the XS-series, the CB-series – all developed their own sequels based on their heavy-duty engines, but the Gold Wing was on top of them all. These days, it’s nothing to see one for sale with 100,000 miles on the clock, or maybe more, and still running.

However, while the motors and other hard parts are very sturdy, these bikes do age, which means the bodywork may be a bit damaged on a used example. Worse still, important electromechanical components may require you to remove that bodywork and even the engine for servicing. Basic work on anything in the heads isn’t bad as they drag in the breeze, but woe betide you if you have to access the charging system on the back. Like many other machines from the 80s, these get more and more suspect over time, and no mechanic will want to deal with them without charging you big bucks (at least you have guys like Steve Saunders to help you through this, with great Gold Wing resources available online).

This is partly why you see so many of these bikes being sold on the used market at low prices now, as opposed to the higher prices of yesteryear. The amount of extra labor costs to maintain these bikes, compared to simpler bikes of the same vintage, makes them less attractive to many buyers. Add in the “fatherly” styling of ’80s GLs, and you’ve got a supply/demand curve that’s the inverse of the rest of the used bike scene right now. The supply of these reliable machines is high, as many have been made and are still working. Demand is low because they are complicated to maintain, their once pleasing aesthetics have fallen out of favor, and they are a bit big and heavy.

That means you can always find one in the $2,500 range or even lower if you’re willing to put in some effort. And when you find one, you can do wonderful things with it, as seen below…

A low mileage find

After telling you about all those cheap, high-mileage Wings on the market, here’s something else – a not-so-cheap, low-mileage example.

The motorcycle in these photos is a 1983 Honda GL1100 Interstate, for sale in Florida with only 10,948 miles on the odometer. This is a one-owner, unrestored bike. Alas, the asking price is $7,900, so it’s not for your average cheap bike shopper…but at least if you’ve bought yourself a mangled GL from the 80s, you can get a good idea of ​​what it is at. what he looked like originally, in these photos! And if you really want to make an offer on this machine, contact the owner at the ad here.

However, if you’re not looking to spend $8,000 on an old ‘Wing? Check this link here, or apply search parameters similar to Craigslist or otherwise: look for a Gold Wing between $500 and $2,500. It’s amazing what is available in this price range, as this model 82 with a sleek look at a Wisconsin dealership for $1,995. It might take a few tweaks, but it should get you back and forth across the country as long as you make sure the mechanical systems are in good shape beforehand. Not bad, for a few thousand!