The motorcycle market in Israel is still far from realizing its potential.
Despite the suitable weather and the appropriate transportation conditions, the numbers still do not reflect its proper size.
Last year the market showed somewhat encouraging signs, with annual sales figures climbing slightly.
This year, like the entire automobile market, the two-wheeler market is showing a decline.
Easy, but clear.
Compared to all these, the motorcycle division of Meir, importer of Honda among others, shows growth.
We met with the manager of the two-wheeled division of the company, Oren Benano, in order to get a picture of the situation on the market, and also an explanation of the brand's outstanding performance against what is happening in the market.
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What prevents the DOG market in Israel from growing?
"There are several factors that need to exist in order for the local market to break through.
First and foremost is that the state recognizes the DOG as an essential and even necessary solution to the problem of congestion.
Once this happens, many things can work out in favor of the market.
This recognition must address the high taxation and insurance costs.
These barriers lead to an illogical ratio between the number of vehicles and the number of DOG in Israel.
The adoption of European regulations such as L1E (scooters up to 45 km/h) can contribute to promoting the scooter as a safe and supervised solution for easy and clean urban traffic.
It also provides an orderly response to the unsupervised vehicles (electric bicycles, scooters) that flood the city streets."
And all these things cause the decline we see this year?
"The decrease this year is mainly due to inventory problems and limitations in the supply chain.
All manufacturers suffer from this, whether it is a decrease in production volumes or difficulty in transporting goods.
In our estimation, these restrictive conditions will continue in 2023 as well.
Beyond the lack of inventory, this situation also translates into an increase in the buying prices of the importers."
The scooter models are more suitable to the taste of the Israeli consumer than before
Although the market registers a decrease of about 6 percent. At Honda, you recorded an increase of 60 percent last year and 50 percent in the first half of 2022. How do you overcome the barriers and difficulties and produce such data?
"Our numbers are part of long-term work.
Implementation of a plan we presented five years ago whose main mission is to lead the DOG market in Israel.
As part of it, we handle various areas - both internally and with the manufacturer.
Issues such as the quality of the service, the perception of the price, growth of the network with agents and new points alongside a comprehensive renewal of the existing ones.
We invested a lot of resources in visibility on the one hand and accuracy of the marketing message on the other.
And of course, the variety of models that Honda presented, with scooters that are very suitable for Israeli taste, contribute a lot here.
This is the result of very comprehensive work that has been done here over the years.
An important part of the picture, this is a strong activity against the manufacturer.
For many years Honda's scooter models were less suited to the Israeli market.
In motorcycles we have always led the market, in scooters most of the Honda line was very suitable for the European taste and less so for the Israeli one.
Today Honda already has scooters that are perfect for Israeli taste and of course the XADV which is the cutting edge.
This is our best-selling scooter."
How do you deal with such many and complex tasks in a relatively short time?
"Fortunately in Meir, the human capital is very high quality.
The employees love the company.
Many veteran employees who are the backbone of the company.
In our wing it seems that it is emphasized even more.
In all areas of work there are quality people you can trust, those who share our vision.
Along with these, you have to remember that Meir is a big company and we have the resources and the ability to grow fast.
There are many overlapping units.
One of the things we did was increase the delivery site, because releasing 500 tools a month is not releasing 100 tools a month.
Here, too, we are talking about more personnel, more physical space, more investment.
There is a very big push here from the owners who appreciate what the two-wheeled sector brings to the company and push it further."
A clear push from the owner and confidence in the two-wheeler market
What about
XADV
made it such a quick and striking success?
"Honda invented a category here.
The looks and capability blur the boundaries between motorcycle and scooter and attract riders of all types.
Scooter riders, motorcycle riders, from us and other brands.
We knew we had a winning product in hand, the goal was to convey to the audience the uniqueness of the tool.
In the end, a very big buzz arose around the instrument and the audience understood very well what it was about.
Work was also done with the manufacturer to sell it here at a competitive price.
In general, our entire line is priced in an accessible way.
Honda is a premium brand with a very wide line, and each of the tools is priced very fairly.
There are also tools that we use that are significantly cheaper compared to the competition, the XADV is such an example.
This year we are already talking about 600 units that will be delivered from it.
It is definitely a local success story.
In other segments you can see that we lead the road/off-road market and lead the sports segment.
We are in second place in large, medium and 125 cc scooters.
Honda has a total market share of 21 percent and our vision is ultimately to be the leading brand in Israel.
What tools did you bring with you to the DOG world from the automotive world?
"I have been in the position since mid-2013 and can submit that the two-wheeled world is different from the automotive sector.
It is much more interesting and dynamic and involves a lot of emotion.
But in the end you bring the management methods with you, which is joined by another experience acquired over time.
Our service methodology comes from the automotive sector, also from Meir's luxury brands, and it has been implemented in the two-wheeler sector.
Regarding spare parts, for example, we are the company with the highest inventory availability.
We know how to work on a large scale, we built an innovative Marlog in Samia that knows how to manage hundreds of thousands of items.
Entering this field took a while, understanding the umbrella.
I also got a motorcycle license shortly after taking the job, I realized that you can't sell motorcycles without riding them.
There is no magic here.
You have to work in an orderly manner, build processes and maintain them, make measurements and know at any given moment where you stand.
You need to know how to connect people to the brand and harness them on the way to the common goals.
Of course, you also need a clear goal and a vision and strive to reach them."
The spearhead of Honda in the local market
What do you predict will happen in the local market and in Honda five years from now?
"The market must grow.
You can see what is happening on the roads, everything is congested, there is no parking - the situation is problematic and there is no other solution.
Congestion taxes will be introduced soon.
In the end, the state and the audience will understand that this is the right way.
So I predict that the market will eventually grow.
Regarding us, as mentioned Honda should lead the market in Israel, be number 1. As it does all over the world.
We have the capabilities to do it, have resources, have full backing from the owner and management.
In the last eight years we have gone from a 6 percent market share to 21 percent.
Our path is clear, that's where we aim.
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