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China’s two motorcycle powerhouses



 

 

The People’s Republic of China has the largest motorcycle industry in the world producing up to 24 million P2W every year. Within the nation the industry is split up in to 3 major manufacturing regions- Chongqing, Guangdong and Zhejiang. Here I will look at the regions of Chongqing and Guangdong which are generally considered to be the areas in which the better quality motorcycles are manufactured, these areas also contain the factories that are more export orientated.

 

Chongqing City

 

Chongqing is one of the leading automotive centres in the world and in terms of motorcycle and parts manufacture is unsurpassed producing roughly 12 million motorcycles a year.

Motorcycle production first began in China in 1951 when the People’s Liberation Army began producing a 500cc motorcycle for military service and it was on this theme that motorcycles continued to be produced until 1981 when military equipment factory Jialing in Chongqing (which had been producing arms for the military since 1875) was commissioned to produce civilian motorcycles (much like BSA). Although there are other huge motorcycles centres in China (Zhejiang and Guangdong primarily) their motorcycle companies are spread out over an area the size of a small country as opposed to Chongqing’s motorcycle companies which are all within a 10 dollar taxi fare from the centre of town. Also, Chongqing is the main production hub for exported motorcycles.

There are currently more than 100 motorcycle manufacturing companies in Chongqing. Along with the countless (hundreds) motorcycle parts factories it is estimated that the automotive industry employs over 400 thousand workers; a significant percentage of the Chongqing workforce.

Chongqing is also the host of the Chinese national/ international level motorcycle trade exhibition, the China International Motorcycle Trade Exhibition (CIMAmotor expo). Since 2003 (when it started out as a local Chongqing motorcycle expo) the CIMAmotor expo has turned in to the biggest commuter motorcycle trade exhibition in the world. Each year more than 100000 people (including 32000 trade visitors) view over 400 exhibition stands displaying more than 1000 motorcycle models and too many spare parts and accessories to count. CIMA represents 80% of the Chinese motorcycle industry with many companies choosing CIMA to launch their new products; the expo generates over 100 million RMB on site.

Chongqing is by far the most important motorcycle production and export base in China. Chongqing’s motorcycle industry has enjoyed solid foundations for its industrial scale, industrial structure, influential capability and independent innovation capability for over 30 years.

The total output value of the Chongqing motorcycle industry in 2013 exceeded RMB 100 billion, and its industrial capacity took up over 40% of the total in China. The Chongqing motorcycle industry exported a total number of 5.46 million motorcycles in 2013, accounting for 40.45% of the total in China; its export value reached USD 1.89 billion, measuring 35.1% of the total, ranking number one in China. Chongqing is home to the following leading motorcycle enterprises:

Lifan Industry Group Co., Ltd.

Chongqing Zongshen Motorcycle Industry Manufacturing Co., Ltd.

China Jialing Industrial Co., Ltd.

Chongqing Jianshe Motorcycle Co., Ltd.

Chongqing Loncin Motor Co., Ltd.

Chongqing Yinxiang Motorcycle (Group) Co., Ltd.

Chongqing Astronautic Bashan Motorcycle Manufacturing Co., Ltd.

Chongqing XGJAO Motorcycle Co., Ltd.

Chongqing Shineray Motorcycle Co., Ltd.

Chongqing Huansong Industry (Group) Co., Ltd.

Chongqing Motorhead

Chongqing Hijoy Industry Group Co., Ltd.

Chongqing Jieli Wheel Manufacturing Co., Ltd.

Chongqing Akita Gear Co., Ltd.

Chongqing Zongshen Engine Manufacture Co., Ltd.

Chongqing Zhicheng Machinery Co., Ltd.

 

From January to April 2013, the top 10 Chinese motorcycle enterprises in terms of export volume were Loncin, Yinxiang, Lifan, Dayun, Sundiro Honda, Haojin, Zongshen, Shineray, Dachangjiang (Haojue), and Bashan. Their export volumes were 306,800, 210,400, 176,900, 143,700, 133,000, 131,200, 110,300, 107,000, 105,600, and 103,700 units respectively. Of this top 10, 6 motorcycle companies are situated in Chongqing (Loncin, Yinxiang, Lifan, Zongshen, Shineray and Bashan). Number 11 and 12 on this list are Chongqing stalwarts Jialing and Jianshe. All of these companies have the capacity to make over 1.5 million whole units per year.

Chongqing has nearly 1,000 motorcycle parts producers, making Chongqing the biggest and most complete motorcycle parts supplying base in China. The output of Zhicheng cylinder heads, Jieli wheels, Yujiang die-casting parts, Yaoyong shock absorbers and Akita gears rank number one in the world. The total output value of motorcycle parts makers in Chongqing in 2013 was RMB 63 billion, up 9.7% from the previous year; their total pre-tax profit was RMB 3.76 billion, up 17% year-on-year.

Chongqing city lives and breathes motorcycles and is now the only major urban centre where motorcycles can be ridden legally. Recently labeled ‘the fastest growing city in the world’ by the BBC Chongqing is the only motorcycle business centre that is actually growing, mainly due to local motorcycle companies adapting to the domestic market situation and further concentration on export.

 

Guangdong Province

Guangdong currently accommodates 131 motorcycle enterprises, 21 motorcycle manufacturers and 110 motorcycle parts producers. The motorcycle output of Guangdong in 2013 was 4.21 million units, making up 16.2% of the total in China. Guangdong is known for its high technical levels and for proactive research and development. The Guangdong industry has formed a modern industrial system combining the R & D and manufacturing of motorcycles, engines, motorcycle frames, tyres and wheels, electric and electronic parts in one of its industrial clusters leading to smoother development as Guangdong cements itself as the most forward looking research and development area for motorcycle technology in China.

The establishment of the motorcycle industry service platform

One of the leading lights in the industry ‘The Guangzhou Electric Apparatus Research Institute Inspection & Test Centre’ operates tests on the overall performance of motorcycle electric parts, batteries, motorcycle lamps, motorcycle materials, rear view mirrors; aging tests on motorcycle materials, and also conducts environment adaptability tests, it operates leading edge technology and has been described by industry experts as ‘the pride of China’s R and D evolution and ‘the equal of its equivalent anywhere in Asia.’ There is also a motorcycle parts China CCC authentication and inspection lab, which can authourise the inspection and verification certificates from many global institutions, including America’s Atlas environment service group and Germany’s DAR which covers over 20 countries and regions.

Among the leaders in motorcycle r and d include Guangzhou Haojin Motorcycle Co., Ltd.’s R & D platform: an R & D platform for developing and researching motorcycles and engines, conducting product performance inspection and tests and the huge Guangzhou Dayang Motorcycle Co., Ltd inspection centre which has the design and development capacity for grade one quality motorcycles, engines, industrial style design and advanced electric apparatus.

 

Information about major export oriented motorcycle manufacturers in Guangzhou

Guangzhou exported a total number of 1.957 million motorcycles in 2013, accounting for 17.18% of the total from China; its export value in 2013 was USD 989 million, taking up 19.37% of the total. The average unit price of exported motorcycles was USD 502.81, a price significantly higher than Chongqing. The export value of 13 motorcycle enterprise in Guangzhou exceeded USD 10 million in 2013, and three out of these 10 enterprises were ranked among top 10 Chinese motorcycle enterprises in exports. Guangdong is the home of the following leading motorcycle enterprises:

Guangzhou Haojin Motorcycle Group Co., Ltd.

Wuyang-Honda Motorcycle (Guangzhou) Co., Ltd.

Guangzhou Tianma Group Tianma Motorcycle Co., Ltd.

Guangzhou Sanya Motorcycle Co., Ltd.

Guangzhou Fanyu Haojian Motorcycle Industry Co., Ltd.

Zengcheng Benma Industrial Co., Ltd.

Guangzhou Dayun Motorcycle Co., Ltd.

Guangzhou Dayang Motorcycle Co., Ltd.

Guangzhou Fast Power Motor Co., Ltd.

 

Anyone who has traded with the Chinese motorcycle industry is aware of Guangzhou’s Canton fair, the biggest export trade fair in the world. A significant part of the fair is taken up with exhibition stands featuring motorcycles, parts and electric vehicles. All of the top 20 motorcycle companies will exhibit here but it is rare to see the smaller companies who generally prefer to exhibit at a motorcycle specific expo like Chongqing’s CIMAmotor.

Unlike Chongqing (in which most of the industry is condensed in to within the city limits), the Guangdong motorcycle industry is spread out over the area of the province. Guangdong is also the hub of many of China’s manufacturing industry and has a reputation for commerce and export going back to the ancient silk and tea trades. Its closeness to Hong Kong also sets it aside as one of China’s financial capitals.

 

 


February 26, 2016
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