The Chinese Motorcycle Manufacturing Industry

**MJH** · 10-13-2011, 03:27 AM

Consider YinXiang
9th largest producer;Chongqing Yinxiang Motorcycle (+21%) total production over 2010 with 565,966
5th largest exporter: Chongqing Yinxiang Motorcycle 326 037 (+21%) exported over same persod YTD 2010

239,000 units in domestic sales YTD July 2011, that’s about 42% of total production

I am just to lazy to go back into the data tables, but the site does have each year and the top 50 in each category for those subsequent years.

From memory XinXiang moved up in both and that would make sense because in a field of losses and or marginal gains the manufacturer that gains in both gains in ranking.

http://www.yinxianggroup.com/index.php

**dy245000** · 10-13-2011, 03:29 AM

Hi, MJH,
Wow, your knowledge of the Chinese Motorcycle Industry is just awesome.
David

**MJH** · 10-13-2011, 03:49 AM

There really is no other explanation if one company gains and another looses, its management. Its not one functional level or another that makes a difference, its actually the interaction and its effectiveness across all of the functional levels as in the total operation.

But what really matters is the operating ratio, that being what the net sales are as a percentage of the total operating expense.

I would say the industry in part is weak on tracking net sales, to me IMO that is actual registered vehicles in the market. Its not really sold until it is road off by a consumer, they in general are detached from that in most cases handing off the sales to wholesalers and then distributors and eventually dealers. The product sitting is not going to bring about a reorder, inventory has to move as in rotate.

In general much of the Chinese exports are actually new consumers or may even be first time buyers? They may not have bought new or at all if the lower cost offering was not available? The only way to know that would be market research. We know they are not doing that are they, any one get a questioner after they bought their bike?

They are so busy playing dodge the regulations and related liability they miss the correct way to operate is to keep track and stay in communication. But that must be with a very good product that has good initial quality as well as some respectable durability over time.

Jeez every vehicle gets a VIN, they all should be in data tables and the net sale is or demonstrated with a real persons name and address, hello its a base for working the market, repeat customers and after market sales.

**dy245000** · 10-13-2011, 04:11 AM

Jeez, MJH, your business knowledge is way over my head.
It would be very difficult for any kind of data base to work in China when so many people have the same name, first, given and last.
I think they tried it once for something else in Beijing some years back. They gave up when every 50 person in Beijing, there is one with the same name. Isn't it so, Lao Jia Hou?
There are so many loop-holes in the Chinese 2nd Generation ID that it is a mess.

**MJH** · 10-13-2011, 04:24 AM

The VIN is the primary identifier, not the name, the names could all be the same but the mailing address would be different

Every government registers motorcycles, its actually redundant, the process is.

If once purchased the name is entered then all the registrar would do is find it and then augment it with a license number.

The banks seem to be able to keep all the names separated, when the account is accessed they do not use a persons name, they use the account number and then see the name. You can access a bank account anywhere so registering a new owner could be also done from any commuter and then also validate ownership and any warranty as well.

**MJH** · 10-13-2011, 04:39 AM

Honda in Japan has the best system, once the motorcycle are built they show up as listed inventory at each listed dealer. You can be sure that once they are sold that Honda has the name of the owner and send them literature in the mail.

Then if that motorcycle has any service done the dealer enters that information, the lists are reviewed and any propensity for failure is examined, to the point that they will actually shutdown production until it is resolved.

I think you people lose the perspective on china as for development potential that nation is off the hook, in that it made more progress in less time then any country ever. It also has a very large population and it ranks out, they have brilliant people.

I find so much information, sometimes I get informed I cannot look at some of it, there are some things I cannot access. But I am also aware they monitor most all communication, it gets reviewed and feed up. They look at traffic and monitor, makes me wonder how loud you have to be to get heard, on the internet it may be a mater of just being relentless.

**dy245000** · 10-13-2011, 06:07 AM

I agree with you, it will work great. The Japanese are a bunch of smart and hard working people.
Now, how are you planning to sell this to the Chinese Motorcycle Industry? It has the potential of turning the entire Industry around.

**MJH** · 10-13-2011, 07:00 AM

I am more interested in global international standardizations,. The Chinese see it coming and will likely set some level of precedence in it I predict, at the rate they are accelerating and also out of necessity.

They are smart to keep raising the bar, even on themselves.

The USA was or had attempted a form of homologation with Europe but it has not and likely will not, the government is polarized. China has the advantage it can change course quickly and also lay out a plan over time for everyone to align on.

I am referring to standards for documentation, functional resources and universal safety and environmental standards.

Innovation is a product of necessity and an intellects reaction to change, adaptability is the only real measure of intelligence.

They raised the bar and now the industry adapts, those that can will endure and grow and the others that cannot die off.

Intelligent business processes offer a competitive advantage, unless others are allowed to cheat the system.
There are cheaters in the system… otherwise know as unfair business practices, false claims and statements are and can be the result of weak regulations and or no ability to monitor/enforce them.

Standard information systems that are linked, as in relational and shared data, in an open system. The only protection needs to be to keep it safe and that in not allowing unauthorized changes. I pointed out banks have such systems and are already for the most part globally linked.

how to mange global trade fairly and equitably?
how to mitigate negative environmental impact as well as maintain equitable positive economics?

Data and quantitative measures, in an open system.

**dy245000** · 10-13-2011, 02:16 PM

That is deep, you are way above my head.
It's like reading Scientific America, it is interesting and all, but hell if I can understand a tenth of it.

**MJH** · 10-13-2011, 04:24 PM

It is really not that complicated, it is just a matter of representing all aspect of the business process digitally.
http://en.wikipedia.org/wiki/Database_normalization that is done with RDMS and in that modeling the process correctly is imperative.

Linking across society and as in that of anyone that is part of the products relative actual life cycle and within that as a process, relating to business, society and government.

Stakeholder are the Government, Society and the actual Business.

What interest me is that China introduced a lower market segment, they are deflating value and in that relative costs.

Done correctly the ideal system would generate sales statistics real-time and automatically. Making for a much more dynamic market, with far less fraud.