Thread: South China Group
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#1 South China Group
07-31-2012, 05:02 AM
Who is the largest motorcycle manufacturer in China? Anyone?
If you did not guess Dayang , you guessed wrong, its the largest by far and consists of two entities within the China South Industrial Group, that group includes Jialing, Jianshe and Qingqi, however it’s Luoyang Northern and its two parts; Luoyang Northern Ek-Chor Motorcycle Co., Ltd and Luoyang Northern Enterprise Group Co.,Ltd., that are the largest.
Combined anyway they are the largest, as of May 2012 YTD they have produced 1,081,643 units and represent 12.85% of total motorcycle production in China. That is 3.27% larger then the Grand River Group (Suzuki/Haojue) which is ranked first.
The pair, that being both in the Luoyang Northern Group are not big exporters in rank, they are only ranking at 20th and 31st and both are posting losses both in production and exports 43.16% total loss in exports combined over last year and a they combined also lost 12.02% in production over 2011.
The groupings in china are complex, some are a JV with foreign partners and others not, but linked through groupings.
The South China Group is huge and in that awkward, far from progressive or innovative. Even its individual entities that are joint ventures with Japanese companies are or seem to be failing.Last edited by MJH; 08-01-2012 at 02:15 AM.
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#2 Re: South China Group
08-01-2012, 01:39 AM
It is not easy to find a complete list of members of the China South Industrial Group. This article claims forty: http://companies.china.org.cn/trade/company/125.html
For Qingqi one member, there are two parts….
Jinan Qingqi Suzuki Motorcycle Co., Ltd 17th largest in rank.
Jinan Qingqi Motorcycle Co., Ltd. 30th largest in rank.
They are posting a combined loss in production from last year of 43.78%
Combined the Qingqi pair claim annual production of 520,920 and 2.26% of the total Chinese motorcycle production.
http://www.chinamotorcycle.com/ShowN...4485566_1.aspx
The combined annualized production according to the statistics on the Luoyang Northern pair is 2,595,943 per year.
In both of these pairs one is a JV and the other is not, but both are entities in the China South Industrial Group.Last edited by MJH; 08-01-2012 at 02:00 AM.
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#3 Re: South China Group
08-01-2012, 01:59 AM
The chairman of Ek-Chor is Dhanin Chearavanot.
A subsidiary C.P. Pokphand Company.
one of its subsidiaries is Zhan Jiang Deni Carburetor
http://investing.businessweek.com/re...apId=118909988
SourACELast edited by MJH; 08-01-2012 at 01:02 PM.
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#4 Re: South China Group
08-01-2012, 02:01 PM
Luoyang Northern Enterprise group, the part of that is not a JV, has its own Alibaba page. On that site they offer the 200cc dual sport model that Qingqi offers with the Luojia brand on it.
The two northerns have Dayang and Luojia as their marketing brands, Ek-Chor being Dayang and Enterprise being Luojia.
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#5 Re: South China Group
08-01-2012, 02:36 PM
I like my 200cc, it has pretty good power.
There are some decent Taobao website that offer spares for those models. But asking westerners to go through Taobao is challenging , they are not into that.
There is a call for one big giant parts website, I think, coding parts, otherwise such a system would be unyielding.
All that is or would be rooted in parts inventory management at the manufacturing level, they would be who set up the initial access to parts for all the various model they offer. The source being defined with the WMI and the details in the serial number of a specific model.
In that South China can be one and within it offer different makes and models, all would utilize the same coding methods. Then share a common access portal for that information.
Not really that complexselling, distributing and supporting.
Why do they need alibaba, why do they need taobao?
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#6 Re: South China Group
08-02-2012, 03:25 AM
Luoyang Luojia Highland Motors Co, which manufactures, however it specializes in research and development of large displacement engines 350-950cc. It does that in a JV with Nya Sweden Highland Motors AB.
The original Swedish manufacturer went into bankruptcy in 2000, then came out of the insolvency opening the operation in china.
In 2009 the parent company of the Luojai partners became US Highland Inc.
The engines according to US Highland are hand built in the USA, wonder if the machined components are made in china?
http://www.ushighland.com/newsreleases.php
You have to wonder since Luojia advertise the engines for sale?
http://motorcycle-part-scooter.china...5/950cc_Engine
I wonder if the Highland motorcycles are manufactured in china and then assembled in the USA, however content laws, I believe, require a 70% domestic content to be labeled made in the USA? I doubt that Highland is manufacturing the engines in the USA, they are not claiming they are manufactured in the USA, just made and that’s not the same or is it?
Does it really mater, not really except the labor cost in china are much lower and in that should mean lower prices, that is why made in America matters as people pay more if they feel it is creating jobs and building economics domestically.
I personally do not like the Highland offerings, they look cobbled and unrefined to me, but they may be great bikes to ride.
http://www.highland.se/
The bikes are not CCC approved and being sold in china, a huge error in the overall business model.
Then you have the horribly tragic event were the executive officers of US Highland die in a crash of a private plane on its way to Detroit. If a corporation is financing then shouldn’t there be a policy on the life’s of the executives? I would think that loosing the entire executive staff was a risk that happened in an event, then the event harmed the corporation. Its not the same as cliff diving but kind of higher risk then say flying separately on a commercial airline? Typically a CEO may have a life insurance policy in the corporations name that would be held by someone like Lloyds of London.
http://www.lloyds.com/
Then that policy would require that risk be managed by the executives. The smaller the plane the higher the risk, then the number of executives on the plane at once compounds that risk factor. That corporation struggled after that tragedy for sure… it totally lost its direction, when it lost all its leaders.Last edited by MJH; 08-05-2012 at 01:40 PM.
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#7 Re: South China Group
08-02-2012, 03:30 AM
Because Alibaba and Taobao make it easy for companies to violate patents and intellectual property rights. 90% of the Chinese automotive industry is based on the theft of I.P. That is why there are hundreds of brands, factories, partnerships, groups, etc. It makes it much more difficult for a company like Honda or Kawasaki to win their battles in the Chinese court systems.
If the Chinese started doing business with simple things like Master Card and Visa purchases via reputable sales channels like Amazon and Ebay, the fraud and IP cases would bring their economy to a halt. The Chinese hate any kind of business agreement that allows for buyer recourse or seller accountability.
I wish this wasn't the case, but distributing and supporting will never happen with most of these companies, they simply don't give a shit about a long term view. The best thing that could happen... nuke the entire industry and start over with 3 or 4 players (like Yingang, CFMoto, Qjiang) and forbid any meddling from the government on an investment level.
Cheers!
ChinaV
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#8 Re: South China Group
08-02-2012, 03:13 PM
I have not comprehensively calculated the rates of attrition in production within the Chinese motorcycle manufacturing industry. However at a glance that attrition seems significantly large and has been occurring year after year as a trend since 2008. However not all entities as large groups, independents and sub companies are loosing production, some are actually growing, however China South group is definitely shrinking overall. They look to be the big supplier of the rural supply “farmer bikes” which may be about to give way to 1.3 liter or smaller farmer four wheeled vehicles.
Complex but what remains in motorcycle production has to be well managed and in that include rights in international legitimacy to what they actually are selling. That’s is because they will not gain in exports if not legitimate and certainly not be able to sell any of the production to investors if they do not have any viable distribution channels into markets. It is going to keep getting smaller and smaller, but what remains has to be very well organized and efficiently selling into viable markets consistently. What is really needed is good accountancy and its only government that can regulate that first on themselves, then on the private sector. They can be legitimate and then displace any illegitimacy systemically. I can only image, that if done correctly, it would be embraced internationally.
In the bigger picture they will actually eventually and perhaps inadvertently force accountability into foreign markets, they will if they keep selling what they do not have legitimate rights to. The markets then have to address that and will be forced to by those in the markets that are affected by the acts.
Maybe something has changed but Harvard school of business teaches that short term is segments in sums that form a long term….the Chinese are not of that school all that you see may be an attempt to get to another distant horizon that is not immediately obvious to everyone.
Some of the production will shift out of china over the next decade, as the demographics change and the labor force develops. What remains will likely be more refined and likely in that be much more legitimate and probably not inexpensive.Last edited by MJH; 08-05-2012 at 01:43 PM.
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