Based on CAAM statistics, the output and sales from the Chinese motorcycle business (which includes export) involving January and October have been 19.505 million units and 19.5772 million units, down 11.94% and 11.86% year-on-year respectively. The output and sales of two-wheeled motorcycles have been 17.5872 million units and 17.6607 million units, down 12.99% and 12.94% year-on-year. The output and sales of motor-tricycles have been 1.9178 million units and 1.9165 million units, down 0.96% and 0.43% from 2011.
The Chinese motorcycle industry had enjoyed speedy improvement considering that China’s ‘reform and opening up’ inside the 1980s but that improvement began to slow down following a recession hit 2008 along with the slump became ever much more obvious after the implementation of National III emission standards in China in 2011. Other challenges nevertheless compound the progress of the market; problems like the banning or limiting the usage of motorcycles in Chinese cities’ has seriously affected motorcycle sales in urban Chinese areas, the all also homogeneous merchandise, unitary advertising approaches and the slow reform and transformation from the market all added for the misery of the business in 2013.
Major Tier Providers Not Exempt from Crisis
Established Chinese motorcycle enterprises are beginning to struggle to survive. CAAM statistics show that in the top 20 motorcycle companies (as of October 2013), only six firms experienced sales increases year-on-year, these being only slight increases. The other 14 providers suffered many drops (of up to 30%). People who suffered the biggest decline have been largely first-tier businesses.
Chinese motorcycle enterprises faced varied issues in 2013, and competition around the domestic marketplace grew fiercer as sales networks have been shifted from urban to rural places. Meanwhile, factors such as soaring raw material rates and rising labor and operation expenses additional influence the earnings of motorcycle enterprises. The dismal basic economic climate has also drastically affected import/export marketplace buying energy and triggered a significant motorcycle sales decline. This tremendously hindered the development of a lot of motorcycle enterprises, and several were forced to decrease expenditure in activities, product R & D, and marketing. Some motorcycle companies had been even forced into liquidation putting the stability of your Chinese motorcycle business in unprecedented difficulty.
Some leading Chinese independent motorcycle suppliers had been nevertheless trying to find ways to fight back, notably Qjiang changing to a high-end product strategy, Lifan’s e-commerce business and Jianshe’s MOTOMAN concept and series of items.