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#9 Re: An open letter to the big four (4) Japanese motorcycle manufacturers--Please Read
07-01-2014, 11:07 AM
The KLX650 is not offered in Thailand, made there but not retailed there. The Ninja 650 is made in Thailand, but not sold for less due to it being made in Thailand, the 650 Ninja sells there for about 30% more then it retails for in the USA?
There is always a total picture and often much of it cannot be seen, it often does not follow the perceived common sense, it is often based on a something sought that simply cannot be seen or fully understood without the complete picture. Has to do with math, a certain sales volume to attain a certain level of profitability. Has to do with overhead slow to sell cost more, slow to sell and in low volumes cost the most to retail. Full part support adds costs…. slow to sell, overstocked and aging cost the most to sell.
If you state you’re an industry analyst and then apply personal tastes and use simple logic to gain consideration in that, it could be called wishcraft and pretty much knocks you out of getting any serious consideration.
Just dropping it into dealers cost money, to justify any forecast of demand there has to be some sort of evidence that sales would occur and that inventory would not languish.
If the sales volume of the Zongshen 250 RX3 out paces the sale of the Suzuki GW250 then there is demand domestically for that type of motorcycle in the domestic market.
The JH600 Jialing is not a hot selling model; the BMW 650 is overpriced in China and parts for it cost a fortune.
Z is correct it should be domestically made and in that it requires support, otherwise it cost so much to sell prices are too high and volumes too low. The sport bikes are always more popular
China does not have a free market economy; it’s a hybrid and its controlled. Greed drives it and it favors domestic production. Most that manufacture in china open a window of high profit that eventually closes on them, they are ok with that because they rarely offer up enough for the Chinese partner to progress independently, they may some of the them but if they do not develop products domestically they simply end up selling last years products independently. They eventually will have to address this or have to continually address inflation the imports are more costly and drive inflation and over fill government coffers with taxes that are often squandered, driving inflation further.
It is not just China that is filled with narcissistic behavior, its everywhere.
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