Motorcycles

China's motorcycle supply industry is changing fast. Companies are closing and merging as the sector rapidly consolidates.
With this report you'll benefit from detailed insights into how these and other factors will affect motorcycle production, product quality and export pricing strategies.

Get inside information on 24 major motorcycle manufacturers, with deep profiles based on in-person factory tours. Then use it to pre-qualify your next suppliers.

Plus you'll receive a comprehensive industry overview, including trends, product and price forecasts, and data on other issues that will impact your sourcing decisions.

What you'll get

Deep profiles of 24 major motorcycle manufacturers, with a detailed look at their production capabilities, export capacities and plans. These profiles are based on personal factory visits and interviews with senior managers

Short profiles of an additional 25 motorcycle and accessory makers, with key statistics such as factory sizes, production capacities, and export ratios and markets

Short profiles of 24 component and part suppliers, highlighting information such as sales, exports and production capabilities

Overviews of 87 best-selling export motorcycles from China, with detailed product specifications and full-color photographs

How you'll benefit

Find out how and why the geographic profile of China's motorcycle supply industry is changing

Discover why production is moving away from sub-50cc models into 125, 150 and 250cc models

Learn how joint ventures with Japanese manufacturers are affecting the range and quality of China-made motorcycles

Understand why many motorcycle producers are diversifying into manufacturing components and parts

Executive summary

Rapid changes characterize motorcycle manufacturing in China today, with 2003 a watershed year that marked the beginning of an upheaval in the industry.

Production is growing and so are export markets. In 2003, China makers turned out 14 million motorcycles, taking up 48 percent of global output. Products are exported to some 200 countries, many of them in the developing regions of Southeast Asia, South Asia and Africa, and developed countries in the Middle East. Sales to the favored U.S. and European markets are increasing.

Exports surged from more than 3.4 million units (US$650 million) in 2002 to almost 9 million motorcycles (US$1.45 billion) last year—a phenomenal increase of 123 percent in value. This is astounding growth even for an industry that has shown consistent strength: China has dominated the world's production of motorcycles since 1994.

The growth in output also includes a healthy increase in exports to the profitable markets of the United States and Europe.

Additionally, Japan makers are moving production facilities to China—mainly to the Southern coastal province of Guangdong. They are also setting up joint ventures with major China manufacturers—2003 saw the number and quality of these China- Japan joint ventures escalate.

Inroads by the Japan giants into China's motorcycle industry, and the interlocking issues of rampant design copying, vicious price wars, plummeting profit margins in recent years and soaring costs of metal have combined to set in motion a rapid consolidation of the industry. Top players are seeking economies of scale, and mergers and acquisitions are increasing.

China makers offer a wide range of motorcycles, broadly categorized as straddle-style, scooter-style and mopeds, mainly in medium engine displacements of 100, 110, 125 and 150cc. The heightened Japanese presence is pushing up the quality of both motorcycles and its core component: the engine. The quality of other parts and components—manufactured by motorcycle suppliers or by specialized factories—is also improving.

Industry overview

China first made a name for itself as the world's top motorcycle producer in the 1990s when it churned out more than 40 percent of global motorcycle output. This is a reputation that China has managed to maintain until the present, manufacturing 14 million motorcycles (or 48 percent of world output) in 2003.

Exports have surged dramatically, from about 3.4 million units with a value of US$650 million in 2002 to close to 9 million motorcycles worth US$1.45 billion in 2003.

Products are exported to some 200 countries, many of them in Southeast Asia, South Asia, Africa and the Middle East. Exports to the high-end U.S. and European markets are also booming.

The industry is not without problems, however. Already beset with widespread counterfeiting, cutthroat price wars and saturation by 300 or more manufacturers—which in turn has resulted in a crop of low-quality products — manufacturers in China are also facing competition in export as well as domestic markets from Japan makers.

While some Japan makers are establishing their own production facilities in China—mainly in the coastal province of Guangdong—to take advantage of lower production costs, others are setting up joint ventures with major local players in the country.

Inroads by the Japanese giants into the local market, combined with the problems mentioned earlier, have set in motion a rapid consolidation of the industry. Top players today are seeking economies of scale, mergers and acquisitions are the order of the day.

The production hubs of Chongqing, Zhejiang, Jiangsu and Guangdong are shifting emphasis, branching out into specialization of certain motorcycle types or into other motorcycle-related products.

The quality of motorcycles as well as engines manufactured in China is improving, and one of the reasons for this is the increased number of joint ventures with Japan companies. R&D focus is on improving designs and engine performance, as well as the development of 'green' or environment-friendly engines with lower fuel emission.

Samples of supplier profile

China Jialing Industrial Co. Ltd (Group)
Boasting 20 years in the industry, China Jialing now has a formidable annual production capacity of 1.5 million motorcycles, with engines in nine different displacements, ranging from 50 to 250cc. The company, which has developed more than 200 motorcycle models, has sold more than 11 million motorcycles since 1979—a figure amounting to one-fifth of China's entire market share over the same period.

In 2003 it amassed US$50.5 million in exports of motorcycles and parts—a 25 percent increase over the previous year. Following a multinational strategy, the company set up more than 30 sales offices, 3,800 branches and 5,200 service points in more than 50 countries and regions. It has subsidiary companies, production facilities or representative offices in the United States, Indonesia, Colombia and Vietnam.

The in-house Jialing brand was the first to come out of China. The company is now the third-largest motorcycle exporter in China, having been dislodged from the number one position this year. It exports 15 percent of its annual output and has built its in-house brand to such a strong level in overseas markets that OEM orders account for less than 15 percent.

China Jialing has been a leader in shaping China's motorcycle industry. Among its various awards are the King of Chinese Motorcycles, National Excellent Enterprise, National Quality and Profitable Advanced Enterprise, and National Consumer Satisfaction Enterprise. It is also one of the two Chinese motorcycle makers to receive the China Famous Brand mark given by state authorities.

The company has passed GJB/ Z9001 quality system, ISO 9001/2 quality system and ISO 14001 environment management system. A 22-year partnership with Japan's Honda has enabled China Jialing to adopt Japanese technology, and has resulted in the establishment of a joint venture, Jialing Honda Motors Co. Ltd. This was set up in Chongqing in 1992 to produce motorcycles, engines, general machinery and components.

Product development
Now a publicly listed company, China Jialing—formerly a manufacturer of military hardware—offers more than 100 models of motorcycles with nine engine displacements ranging through 50, 70, 90, 100, 110, 125, 150, 200 and 250cc. Its most successful export lines are the 90 to 110cc range, with the 100 and 110cc models accounting for 40 percent of sales.

Sample of product gallery

Motorcycles & Accessories Model name/number: ATV-150 Release date: Nov. 2003 Minimum order: 600 units Delivery time: 20 to 25 days Packaging type: Hob and carton Units per 20ft container: 32 Product approvals/certifications: 3C Indicated FOB price: US$1,190 Product description 250cc, air-cooled engine; 70-80kph maximum speed; electric start; drum brake; axle transmission

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