The Chinese Motorcycle Manufacturing Industry

FYM 5R Motors (GUANGZHO) Co., Limited
Guangzhou Panyu Huanan Motors Group

http://www.5rmotor.com
http://www.hnmoto.com



Same company has more then one website, not ideal.

Huanan Group

Not entirely sure how big this group actually is but they may actually be one that includes, I believe Wuyang - Honda Motors (Guangzhou) Co., Ltd.
http://en.wuyangmotor.com/newEbiz1/E...tml/index.html

Wuyang ranks 12th in overall sales for 2011 with 900,099 units. They however the two are listed under different names.

15th Panyu 213,293 units and 20th overall with 368,805 units
22nd Wuyang 167,491 units and 12th overall 900,099 units.

Not sure but I think that this group in particular is very large, if it is some how associated with Guangzhou Jin Hao Motorcycle Co., Ltd is unclear…there may be some redundant counting of sales. Jin Hao is listed at 4th largest exporter with 585,682 unit and 14th in overall sales at 695,758, for being that large it is not visible in its marketing.

Then there is Guangzhou Motors Group Company also listed at 23rd with 358,928 total sales. Which list Wuyang on its website….it begins to looks like sales counts may be redundant.
http://www.gzmotors.com/english/subordinate.jsp?cid=353

Total Production…February 2012 year to date, comparing changes over each year.
3,738,304 2011
4,101,730 2010
-8.86

3,443,053 2012
3,738,304 2011
-7.90


That’s a trend, it did not just occur over the past two years its been happening since 2009.
-16.058 % drop between 2010 and 2012, that is a serious drop in production, down 658,677 units.

First two months of Production 2012


The first two months of 2012 show a loss of 19.85 in total exports over the same two months last year.

First two month Exports 2012


Not every manufacture showed decreases, though many continue the attrition. Jiajue had a nearly a 400% increase in its exports, they exported 299 for the first two month of 2011 and 1491 for the same period this year. That brought Jiajue into the top 50 exporter? That is the company that is offering the DOHC 26hp 250cc water cooled sport bikes, called the Motrac 250. http://www.jiajue.comhttp://www.jiajue.com/uploadfiles/pr...1113342175.JPGThey are also offer those with believe it or not a 50cc 4-stroke, 125cc, 200cc as well as the Yingang Honda NX250 cloned engine.50cc versionhttp://www.jiajue.com/uploadfiles/pr...1214352589.JPG

Sundiro Honda Motorcycle Co., Ltd.
Gained 20% in overall production and 24% in its exports.
Not every manufacturer is shrinking……

Chongqing Jianshe Motorcycle Co., Ltd.
lost 9% in production and gained 9% in exports.

China Jialing Industrial Co., Ltd. (Group)
Lost 26% in production and had no change in export over last year with 0%.

Wuyang - Honda Motors (Guangzhou) Co., Ltd.
Gained 38.26 in production and 37.98 percentages in total exports.

Jinan Qingqi Motorcycle Co., Ltd.
Gained 32% in exports and lost 26% in total production.

The thing is this the ideal in manufacturing is being at or close to the capacity in production, that reduces the per units fixed cost of the operations. Even though making more cost more in material it cost less in labor and other related fixed costs. Running at or near capacity is optimal, that also has to do with the recovering of the initial investments. That is because if they overbuilt then the idled labor, machinery and facilities does not generate capital.

Linear Functions

The big grower Zhejiang Taizhou Wangye Power Co., Ltd.
of 2011 grew another 28% in production in the first two months of 2012.
and had another 61% growth in its exports.


http://www.wangyemotor.com/

They manufacture the three main models:
the CG125
http://www.wangye.com.cn/upfiles/-mainWY125l.jpg
GS125
http://www.wangye.com.cn/upfiles/-mainwy125-6l.jpg
GN125
http://www.wangye.com.cn/upfiles/-mainwy125-9-6l.jpg
As well as a line of scooters….
http://www.wangye.com.cn/a-motor-bicycle/125.html

There is no doubt that the biggest losses in production, mean huge losses in capital. Not a mater of making profits those that have had huge drops in production and had just enlarged or improved their facilities have the greatest looses in capital.


That is new perhaps to China, what to do when the growth stops?


In a free market, typically it leads to bankruptcy and liquidation of assets.

The site offers a periodic snapshot of what is being manufactured and has the results sorted by displacement.


You might guess that with the introduction of some midrange models that we would see growth in that segment over last year. Not the case though, production of over 400cc<750cc actually dropped for the first two month of 2012 compared to the first two months of 2011.


Dropped 69% from 597 units produced in the first two month of 2011, to 185 units for the same period 2012. The actual sales of this range fell 75% from 2011, only 109 units sold for the first two months of 2012, compared to 448 for 2011.


The site does not offer any statistics on imports and it really should.


The 250 to 400cc production increased by 489% for 2012 over 2011, from 89 units to 495 units. I am fairly sure that the only model that is 250cc and approved for domestic sale would be the GW250,Qingqi 250 and YBR250. At that rate barely 3,000 units are produced annually in that class?


http://www.chinamotorcycle.com/ShowN...6789858_1.aspx




The 150 to 250 class produced 94,000 up 25%
125 to 150 550,000 up 6.9%

You can get an MV Agusta in china the F3 sells for 188,000 RMB or about 30k American.


http://www.china.mvagusta.com/


The F3 sells in Europe for 11,990 Euros or about 15k American, that includes a 20% VAT.


That’s a niche market, a special team of people that cater to very few, do they offer a free Armani sport coat with the bikes? Seriously is it all tariff or is it just profiteering or both.


The Chinese duty on a 501cc to 800cc motorcycle is 40% on the CIV which includes the freight costs and then another 17% is added on as a VAT….about 67% of that markup is taxes and the other 33% is the distributor markup at just under $10,000 American?


http://www.dutycalculator.com/popula...orcycle-parts/




Buying one at such a premium does not represent anything flattering….not really.