Jialing Sales Way Down

[Lao Jia Hou]

As reported by CHINAMOTORWORLD.com - March 18, 2011
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Output & Sales of Jialing Motorcycle Drop Nearly 50% in January

An announcement made on February 11 claimed that the sales and output of China Jialing motorcycle in January were 40,200 units and 40,300 respectively, down 46.99% and 47.80% year on year.

Prior to this, China Jialing announced that it had a great loss of around RMB 265 million in 2010, due to policy changes in the Chinese motorcycle industry, RMB appreciation and the increase of asset value losses.

According to the China National III Emission Standard issued by the Ministry of Environmental Protection and Standardisation Administration of the PRA, all motorcycle manufacturers must produce motorcycles based on the China National III Emission Standard instead of the National II Standard from July 1, 2010 onward. Since motorcycle manufacturers need time to deal with stock products and establish new production lines based on the National III Standard, the promotion of National III Standard leads to production reduction in the whole industry. Secretary-General of the China automobile industry association motorcycle branch Mr. Li Bin said in the same month when National III Standard was brought into effect, the production volume of the whole Chinese motorcycle industry dropped over 30 percent compared with before July 2010.

TX Investment Consulting Co., Ltd claimed that the implementation of China National III Emission Standard brought great pressure on cost and sales for China Jialing. However, China Jialing started the project of relocation and technology improvement at the beginning of 2010, which is expected to be finished at the end of 2011, by which the annual production of motorcycle and engine will respectively reach 850,000 units and 950,000 units, the production value of which will reach RMB 5 billion.

China Jialing is one of the largest motorcycle manufacturers in China. Its leading products Jialing motorcycle and engines have about 100 models out of 10 different displacements ranging from 50cc to 600cc. With an accumulative output and sales volume of 15 million units, Jialing is the brand with the largest output and sales volume in China.
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[euphonius]

The mind reels. Could you imagine this happening anyplace else in the world?

[Lao Jia Hou]

I saw ChinaV mention in some other thread that 200cc & 250cc bikes can not be registered, currently - these are the bread & butter of the industry. I've heard similar things in Beijing.

Not a good time to be trying to survive in the MC business. From what I've read online, the situation in the USA is similarly bleak.

[moilami]

The mind reels. Could you imagine this happening anyplace else in the world?

Well hopefully that will make them develop working EFI for 250cc bikes next year and not in year 2018.

Big Brother has to be hard at times!

[euphonius]

These companies seem only to respond to demand from importers and resellers, not to riders -- and certainly not to Chinese riders (except maybe the military and police). So now suddenly the hammer falls and most of the bikes they make are non-compliant. Haha! Get off your lard asses Jialing (and everyone else).

Or maybe if you are a state-owned enterprise and suddenly suffer state-created losses you can just send a bill to the state for compensation. Bo X*lai will not let you lay off all your proletariats.

So what's going on now? Will the Chinese majors actually bother to upgrade their products to meet compliance, or are they up in Beijing plying the good bureaucrats with fake Moutai and real girls and cold cash for exemptions....

[moilami]

I think they will take the money and run.