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Motorcycle industry needs to transition

2012 for China’s motorcycle industry is exceptionally difficult year。 China Association of Automobile Manufacturers (hereinafter referred to as "Automobile Association"), on January 11 released data show that in 2012 the number of motorcycle sales hit its lowest level in five years, compared to about 12 percent down from last year, while motorcycle export situation is not optimistic, down 16。8%。

Domestic market sales continued to slump, fierce international competition, the motorcycle industry in China into a corner. Industry experts believe that the motorcycle industry have gone through a period of rapid development, in order to win time has gone, in order to break through the impasse, yet to be developed model transformation, the need to achieve the transition from scale to efficiency, adjustment product structure, technological innovation, further improve product value.

Market downturn

Assistant Secretary General of China Association of Automobile Manufacturers Li Bin in the recently held conference Automobile Association industry information introduced in 2012, the motorcycle market remains in the doldrums, the monthly average sales of less than two million, down significantly from the previous year。 Annual sales of motorcycle 23,629,800 and 23,650,700, down 12。5% ​​and 12。2% over the previous year, production and sales to the lowest since 2007。

In 2012, motorcycle sales and profitability of the key enterprises generally poor。 Steam coordination of research in the industry 99 companies, loss-making enterprises amounted to 31, the loss reached 31。31%; in sales of the top ten companies, only three maintain a slight growth in corporate profits, the other seven companies both declined to varying degrees。

While the domestic market into a corner, the motorcycle manufacturer has been so high hopes for sales overseas market is also facing the grim situation. European debt US debt crisis triggered sustained chain reaction, coupled with the appreciation of the RMB exchange rate and labor, raw material prices and other factors, in 2012 the average monthly export volume of motorcycle less than 75 million, lower than the monthly average 890,000 the level of export volume vehicles. Annual export motorcycle 8,935,900, down 16.8% compared with last year, down 8.6% compared with the 2008 financial crisis occurred.

Multi-factors

Li Bin believes that the motorcycle industry has been caught in the current development difficulties, except by the world economic recovery, lack of motivation, weak demand and slow growth in the domestic economy and other macroeconomic impact, the motorcycle industry there are also many problems of their own development: Development mode has been one-sided pursuit of scale, lack of core technology and technology accumulation, serious product homogeneity and low value-added products.

Automobile Association released the "2012 Chinese motorcycle industry developments," the report shows that the country Ⅲ emission standard motorcycle substantial increase of motorcycles and mopeds level of pollutant emission control requirements, and proposed fuel evaporative emission control limit, which motorcycle manufacturers put forward higher requirements. Motorcycle since the full implementation of the country Ⅲ emission standards, companies struggling to cope with the "National Ⅲ", a serious shortage of new product introductions, technological innovation is not enough.

Implementation of the "cut-off limit friction," the number of cities increased year by year, all kinds of bikes, electric vehicles and more expensive cars, and gradually become an alternative means of travel tools motorcycle so the motorcycle further narrow the urban market space, but also affected product innovation and product upgrades motorcycle industry. In addition, the city "ban limit friction" has led to the emergence of "illegal fuel Bicycle," "excessive electric assisted bicycle" and other abnormal products, seriously disrupting the normal market order in the motorcycle industry.

In the export market, Chinese motorcycle enterprises in the international market and not to lay a solid foundation for the brand and channels, as well as the lack of core technology and intellectual property, leading to similar products, the price war continued; at the same time, labor and raw material prices, cost pressures intensified, RMB appreciation and other factors also led to a Chinese motorcycle enterprises in the international market competitiveness continues to be eroded.

Industry experts believe that product homogeneity serious competition, manufacturers are reluctant to invest inability marketing repositioning motorcycle user groups, resulting in many product structure is irrational, mostly low-end products, low dealer margins, it is difficult to maintain the normal operation , began to withdraw from motorcycle market. In addition, local governments implement land finance, lead to land, store rents, but also to the motorcycle industry is not a small pressure.

Urgent Product Upgrade

Face is not optimistic about the situation, where the Chinese motorcycle industry breakthrough path? Li Bin that the face of a difficult market, the only way out is to focus on innovation and enterprise, "take the difference of the development strategy, the implementation of differentiated product planning, key components of the innovation system and innovative marketing strategies."

Li Bin said: "The Chinese motorcycle industry 80% -90% of production sold in rural areas, farmers are more sensitive to price, nearly 20 years of Chinese motorcycle enterprises are mainly in the development of a low cost price of products, China motorcycle Enterprises only the equivalent of a Harley-profit company, the development of the motorcycle industry urgently product upgrades。 "

It is understood that in the current consumption of the domestic motorcycle market, ordinary cars although dominant, but consumer demand is gradually moving towards personalization。 Recreation motorcycle market and is widely considered to be "very promising blue ocean market," bucked the trend in the state。 Harley, Ducati, Polaris, Victory, Bombardier, BMW and other foreign brands in 2012 sales in China compared to the previous two years of substantial growth, Honda, Yamaha, Suzuki also began to put substantial imports large displacement products in China。 Profit undoubtedly very lucrative high-end market, but the domestic enterprises in the high end still blank。

Automobile Association believes that the future market demand rigid Chinese motorcycles are still about 30 million, the market will gradually change in consumption structure, rapid growth in high-end products, traditional products share will decline, consumer brand awareness increased, China’s motorcycle market competition will further internationalization.

Industry experts have suggested that, for businesses, and more importantly, through technical innovation, a different approach. Chongqing Zongshen Zuo Zongshen Group chairman also said in an interview, change the way quickly learn and master advanced foreign technology, it is an effective way to accelerate industrial upgrading. Through joint ventures with foreign investors, new products, develop new technologies, the co-development of domestic and foreign markets, allows companies to quickly get rid of the current predicament.

At present, many companies have begun to adjust the product structure and the development of new products, focus on the development of high-end products. Industry experts believe that, in 2013, large and medium displacement motorcycles growth trend will become more apparent; high-end leisure, heavy motorcycle market demand will also receive attention, the high-end market will be domestic enterprises to upgrade an important manifestation. - Excerpt from "Chinese motorcycle Network", there is exclusion.

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