Motorcycle Market in China | Daxue Consulting

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MOTORCYCLEMARKET

IN CHINA

SEPTEMBER, 2015

Daxue香港上海北京

Consulting



MOTORCYCLEMARKET IN CHINA

The motorcycle market in China developed

comparatively late. Whereas motorcycles first

became popular in the 1920s in Europe and

America, China wouldn’t begin producing them

until 1951.

Today, China is the world’s largest motorcycle

market, selling about 26.95 million motorcycles

in 2014. Motorcycles have become a pillar

industry in the modern Chinese economy and

represent an important part of the automobile

industry.

Of course, motorcycles are not popular only in

China. The top 10 markets for motorcycles in the

world are China, India, Indonesia, Vietnam, Brazil,

Thailand, Philippines, the United States, Pakistan

and Taiwan.



Why aremotorcycles so popular in developingcountries?

cars, not only to purchase but also the operating

costs are generally less (fuel, repair, etc,). Take

a Zongshen ZS100-S for instance: the average

fuel consumption is 1.9 liters per 100 km, a figure

lower than many hybrid automobiles. The use

of motorcycles has less of a polluting impact

compared to cars, and two-wheelers are less

regulated in terms of insurance or licensing,

further reducing their costs.

Motorcycles are

much cheaper than

Motorcycles are a pillar industry of

China’s national economy

26.95 million motorcycles sold

in 2014



Another positive note is motorcycles are faster in

cities: Li Bin, the Secretary of China’s Automobile

Association of Motorcycles, published a test result

showing how motorcycles are the quickest

means of transportation in terms of commute

time, followed by buses. Cars were ranked

slowest. Riding a motorcycle not only means

quicker commutes and a reduced contribution

to road congestion, but also greater ease and

convenience in parking due to their smaller size.

However, production and sales of motorcycles

in China are about to shrink. The industry was

effected by the global recession in 2008, and is

set to continue its decline based on an average

decrease over the past 5 years. The domestic

motorcycle market will decline by around 8% in

the future.

However, strong business opportunities remain

in different segments of the motorcycle industry

due to transformations in the market.



Are motorcyclesin China a means oftransport, leisure or entertainment?

Motorcycles are generally used for two purposes:

as a mean of transportation, and/or for leisure and

entertainment. For transportation, the motorcycle

market in China can be subdivided into two

segments; road motorcycles and scooters. The

demand for road motorcycles has declined heavily

in the last years.

ROAD MOTORCYCLES SCOOTERS



Motorcyclesas means oftransport

In 2014, sales of domestically produced

motorcycles fell about 8.48% compared to the

previous year. This decrease is attributed to

two reasons. First, the living standards in rural

areas are increasing in China. Motorcycles are

normally multi-purpose vehicles in China. For

example, in addition to personal transportation,

they might also be used for cargo or as passenger

vehicles. With improved living standards,

motorcycles have been replaced by small cars

and more affordable e-bikes and scooters.

Motorcycles

e-bikes

micro-cars



The second reason for the sales decline are

the limitations or outright bans set in many

Chinese cities, as the government works to

promote security and less pollution in cities.

These bans are the reason scooters, the second

biggest segment in the motorcycle market in

China for transportation, are so popular and why

the domestic market for scooters continues to

grow. E-scooters in particular are being used

by more and more people in the cities as a

mean of transport, although the government is

imposing more regulations on the use of lead-

acid batteries. By 2018, the world annual sales of

e-motorcycles is estimated to be approximately

18.7 million, with most being sold in China.

Electric-drive products are definitely the future

trend in the motorcycle market in China. The

launch of Wuyang-Honda electric motorcycles

was a major cue to other electric two-wheeled

manufacturers to begin their entrance into the

market.



Motorcyclesas means ofleisure & entertainment

Sales for large displacement motorcycles

(≥400cc) for the purpose of leisure and

entertainment continues to grow. In 2014,

domestic sales of large displacement

motorcycles increased by 231.82%. With the

transformation of the motorcycle market in China,

market analysts see a future growth point in the

motorcycle leisure and entertainment industry.

+231.82%Large displacement motorcycles

domestic sales



Chinese people are seeking more personalized

lifestyles, tending to choose larger

displacements, higher performance, more

stylish designs and high-tech motorcycles as a

leisure and entertainment tool. The demand for

large displacement motorcycles will increase

year after year. Domestic companies in this

sector will have to pay more attention to this

market segment, and invest in the research and

development of large displacement motorcycles

in order to launch more models. Currently, the

top five Chinese motorcycle manufacturers for

recreation purposes are Lifan, Loncin, Zongshen,

Jialing and Qingqi.



About usDaxue Consulting is a market research

company dedicated to providing the

best specially tailored, high-quality,

customer-specific data in one of

the most challenging markets in the

world; China. We leverage our unique

network of university organizations

and professors, business associates,

industry experts and foreign and local

consultants to find the information you

need efficiently, reliably and in a manner

that addresses your specific needs.

We excel because we’re reliable,

resourceful and flexible, everything

that the Chinese market demands.

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Consulting

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