Serving the World's Largest Emerging Automobile Market
Home > Motorcycle > China’s motorcycle market in 2007

China’s motorcycle market in 2007

China produced and sold 25,446,862 and 25,467,973 motorcycles in 2007, up 18.70 and 33.28 percent respectively, compared with those of the previous year, according to the statistics released by the China Automotive Association of Manufacturers (CAAM).
 
Table I. Output and sales of China’s motorcycle market from 2000 to 2007
Output                                                                                                
Year      1999     2000     2001     2002     2003     2004     2005     2006     2007
Units     11.27    11.53    12.37    12.98    14.66    17.19    19.16    21.44    25.45
%        N/A      2.31     7.29     4.93     12.94   17.26   11.46    11.90    18.70
Sales                                                                                                   
Year      1999     2000     2001     2002     2003     2004     2005     2006     2007
Units     11.34    11.47    12.44    13.07    14.82    17.9      19.11    21.27    25.47
%        N/A      1.15     8.46     5.06     13.39   20.78   6.76     11.30    33.28
 
 
Out of the total, the production and sales of two-wheelers reached 24,231,824 and 24,256,659 during the first ten months in 2007, up 15.20 and 16.26 percent compared with that of 2006; and that of three-wheelers reached 1,215,038 and 1,211,414, up 35.10 and 36.08 percent.
 
Table II. China’s motorcycle production and sales by type and displacement in 2007
                                                      Production                                                                          Sales                                                             
                                                      Jan. – Dec., 2007     Jan. – Dec. 2006      % change      Jan. – Dec., 2007     Jan. – Dec. 2006      % change
50mL                                           2135490                   1402520                   52.26             2119617                   1408169                   50.52
60mL                                           3067                          954                             221.49           2856                          1005                          184.18
70mL                                           257316                     222151                     15.83             256022                     238059                     7.55
80mL                                           93007                        73364                        26.77             93821                        69894                        34.23
90mL                                           376946                     326557                     15.43             366304                     329053                     11.32
100mL                                         3305026                   3215726                   2.78                3295381                   3217342                   2.43
110mL                                         3680867                   2842245                   29.51             3690276                   2797507                   31.91
125mL                                         11633410                10784716                7.87                11709444                10661445                9.83
150mL                                         2339023                   1834236                   27.52             2321330                   1811093                   28.17
>=250mL                                    407672                     332257                     22.7                401508                     331096                     21.27
Sub total of two-wheeler      24231824                21034726                15.2                24256559                20864663                16.26
50mL                                           13426                        10036                        33.78             13286                        10731                        23.81
>50mL                                         1151405                   861314                     33.68             1150047                   851657                     35.04
250mL                                         37912                        12477                        203.86           37070                        12440                        197.99
750mL                                         12295                        15502                        -20.69            11011                        15393                        -28.47
Sub-total of three-wheeler   1215038                   899329                     35.1                1211414                   890221                     36.08
Total                                            25446862                21934055                16.02             25467973                21754884                17.07
 
Two-digit increase rate in production and sales
The production and sales had both reached 21 million by the end of 2007. In Q2, it hit peak value, reaching 6.54 and 6.55 million, up 16.52 and 14.92 percent.
 
Industry analysts indicated that the good market performance in Q2 came from the comfortable climate, which is suitable for riding motorcycles and the state’s drawback policy on motorcycle exports, down from 13 percent to 9 percent as of July 1, 2007.
 
Going inside the separate monthly sales performance of 2007, we found the average monthly sales were above 1.6 million. The figures even exceeded 2 million in March.
 
Table III. Production and sales of the top 10 of China’s motorcycle manufacturers in 2007 
                               Production                                                                   Sales                                                            Company                                                                       Jan. – Dec., 2007    Jan. – Dec., 2006    % change    Jan. – Dec., 2007    Jan. – Dec., 2006    % change
Dachangjiang (Group) Corp.                                   2824829                   2325876                   21.45             2822485                   2303621                   22.52
Loncin Group Corp.                                                   1807291                   1511684                   19.55             1803677                   1506625                   19.72
Jianshe Industry (Group) Corp.                               1593138                   1373109                   16.02             1598651                   1371939                   16.52
Lifan Industry (Group) Corp.                                   1571380                   1332038                   17.97             1568405                   1331369                   17.8
China Jialing Industry Group Corp.                      1481295                   1371865                   7.98                1486067                   1375719                   8.02
Zongshen Industry Group Corp.                             1393902                   1198003                   16.35             1391002                   1198357                   16.08
Qianjiang (Group) Corp.                                           1351389                   1236977                   9.25                1348805                   1235264                   9.19
Luoyang Northern EK-Chor Group Co., Ltd.     1323972                   1140486                   16.09             1300097                   1149633                   13.09
Luoyang Northern Yichu Motorcycle Co., Ltd.                                     931758                     758930         22.77                         912302                     767555       18.86
Sundiro-Honda Motorcycle                                    888011                     800515                     10.93             926453                     756926                     22.4
Sub total of top ten                                                    15,166,965             13,049,483             16.23            15,157,944             12,997,008             16.63
Total                                                                                25446862                21934055                16.02             25467973                21754884                17.07
 
New export tax return policy has little effect
According to CAAM statistics, the export value of motorcycle products among the total 91 motorcycle makers last year reached $3.29 billion.
 
During the period, the export volume of motorcycles (whole vehicle) was 6.56 million units, up 22.42 percent. The curve of motorcycle exports kept going up during the first half of 2007, and it exceeded 800,000 in June alone.
 
However, the Chinese government published a new tax return policy on motorcycle exports, which became effective from July 1, 2007. The policy had impact on motorcycle makers and their exports profit, but it seemed to have little effect in terms of the export volume. China exported 1.54 million motorcycles in the first quarter, 2.14 million in the second quarter and 2.19 million in the third quarter.
 
The 125ml motorcycle ranked first among exports, ahead of the 50ml, 100ml, 150ml and 110ml in descending order, during the first three quarters. The profits from the exports of the top five types of motorcycles are $849 million, $397 million, $387 million, $289 million and $250 million, respectively. For the top five types, the combined export volume and profits were 5.40 million units and $2.172 billion respectively, taking up 92 and 91 percent of the total.
 
A total of 16 motorcycle makers each had an export value exceeding $50 million during the first three quarters, taking up 68 percent of the total. The top 10 motorcycle manufacturers in terms of export value, namely, Locin, Dachangjiang, Lifan, Sundiro-Honda, Zongshen, Jincheng, Yinxiang, Qianjiang, Jianshe and Guangzhou Dayang, realized a total export value of $1.518 billion, taking up 52 percent of the total.
 
In terms of export volume, the top 10 motorcycle makers reached a total volume of 3.25 million units, taking up 55 percent of the total.
 
Top 10 motorcycle makers aim for more market shares
According to the statistics of the first three quarters of last year, the production and sales of the top 10 motorcycle makers maintained an average of 500,000 units each, and the growth rate of the top five reached 18 percent. Six out of the 10 makers reached production and sales figures above one million units. The trends indicated that the larger companies are expanding and increasing their production capacities and market shares.
 
The top 10 makers produced and sold 10.99 and 11.02 million motorcycles, up 18.64 and 20.30 percent respectively year-on-year. Output and sale of the top five motorcycle makers reached 6.80 and 6.78 million units in the same period, up 22.9 and 22.35 percent.

Leave a Reply