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Looking at Loncin



 

Chongqing motorcycle giant Loncin has long been regarded as a leading light in the Chinese motorcycle industry. Loncin are currently the biggest exporter of motorcycles from China with roughly half of their million plus production going overseas. Loncin were founded in 1993 and since then the company has grown to become one of the biggest engine manufacturers in China (with a production figure exceeding 3 million engines). In terms of fully built up units Loncin manufacturers over 100 types of motorcycle as well as producing mopeds, cubs and scooters. Loncin’s advances research and development department has developed or installed EFI and ABS on some models. There are also models available which can be made as ‘dual fuel’ (with a switch that can change petrol usage to CNG or LPG) and their increasingly growing reputation for quality and service has led to business in more than 100 countries globally including the difficult European markets.

Back in the late noughties Loncin bought out fellow Chongqing manufacturers Kinlon in a move that signaled their intent to rise to the very top of the motorcycle industry. According to the official figures for the first 3 quarters of 2014 Loncin generated RMB5.012 billion, a year-on-year increase of 7.11%; with the net profit attributed to listed company shareholders is RMB417 million, a year-on-year increase of 21.95%. A Loncin spokesman revealed that “the main reason for the increase is because that, faced with tough business environment, Loncin has striven to explore both domestic and international markets and constantly adjusted its product structure. Loncin’s electric and general power mechanic products business and motor tricycle business have grown larger and the product structure has been further optimized.”

The Loncin racing team has competed at the very highest levels having competed in FIM MotoGP125 competitions, the only Chinese motorcycle racing team to have done so.

In 2005, Loncin famously entered into an agreement to make G650GS motorcycle engines for Austria-based BMW Motorrad. The partnership has produced over 35,000 engines for BMW (it is the only large-displacement engine supplier of BMW in Asia) creating significant and technical benefits for Loncin who use the engine to power their LX650 (also known as the CR9). This model is available only in markets specified by BMW under the trade agreement.

On October 23rd 2014 BMW Motorrad agreed to further its relationship with Loncin by entering into a long-term supply agreement of large-displacement engines with BMW Motorrad, the supply figure is expected to be 300,000 sets. Loncin will manufacture and supply high-tech water-cooled motorcycle engines for BMW using design and technology product information provided by BMW Motorrad. Loncin will invest about RMB100 million. Experts in the industry indicate that as the output of BMW 650cc single-cylinder engines last year exceeded 10,000, this new supply of large-displacement engines will become a growth point in the future performance of Loncin.

 

 

 


February 18, 2016
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