High-end, intelligent, domestic motorcycles have evolved significantly and are sold to the world, but the ban on motorcycles is still an obstacle to domestic sales
Text | Zhai Fangxue, Li Huiyin
Edit | Lee H.Y. Yin
When you think of motorcycles, what comes to mind? The notion that pollution is high and unsafe has long been outdated. New energy, intelligent driving, and Internet of Vehicles are becoming more and more common on motorcycles, and driving safety and experience are getting better and better. In this context, domestic consumers are getting younger and younger, buying cars has changed from business and transportation to entertainment, and the competitiveness of exports with good products is also increasing.
The Beijing International Motorcycle Show has been held for the fourth time this year. The auto show opened on the morning of May 17, with a scale of more than 70,000 square meters, attracting a total of 220 companies from China, Japan, Germany, Italy, Spain, Canada, the United Kingdom, Pakistan and other countries to participate in the exhibition, and the number of visitors is expected to exceed 100,000.
BMW R 1300 GS
During the exhibition, the 2024 China Motorcycle Industry Summit Forum and more than 30 new car and new product launches will also be held. For example, the all-new R 1300 GS, the latest flagship model of BMW's Motorcycle Adventure series, made its debut in China and started pre-sales at the same time, with pre-sale prices starting at CNY 228,000. The all-new BMW CE 02, the third all-electric scooter in the urban mobility series, was officially launched, with a suggested retail price starting at CNY 69,900. In addition, all 17 products from BMW's six major models were present at the booth.
Over the past decade, BMW Motorrad has introduced more than 30 models in six product series, and has continued to iterate and update to varying degrees. Mr. Markus Flasch, President of BMW Motorrad, said: "As the fifth largest sales market for BMW Motorrad in the world, the Chinese market has made an important contribution to the global sales performance in 2023. ”
Not only is China's consumer market has great potential, but Chinese motorcycles have gradually come out of the shadow of defeat in Vietnam in the past, showing strong growth in foreign trade. According to customs statistics, China will export about 11.415 million motorcycles in 2023, a year-on-year increase of 12.8%. From January to February this year, 1.405 million motorcycles were exported, a year-on-year increase of 42.3%, a record high for the same period in history.
But at the same time, the development of Chinese motorcycles in domestic sales has slowed down. In 2023, China's domestic sales of fuel motorcycles will be about 5.86 million (excluding imported vehicles), a decrease of 2.87%; From January to February this year, the domestic sales of fuel motorcycles were about 710,000, a year-on-year decrease of 21%.
If you want to blossom both domestically and internationally, it is key to reasonably relax restrictions on motorcycles.
01
The market potential is huge, and the industry direction is renovated
Carcaijing learned at the exhibition that the social ownership of motorcycles is about 100 million, and there is a ten-year growth generation gap between China's motorcycle consumer market and overseas mature markets, which shows that the Chinese market still has great potential.
Mr. Markus Flasch, President of BMW Motorrad, said: "As the fifth largest sales market for BMW Motorrad in the world, the Chinese market has made an important contribution to the global sales performance in 2023. "Over the past decade, BMW Motorrad has introduced more than 30 models in six product series, and has continued to iterate and update to varying degrees.
BMW R 1300 GS
In addition, in the exchange of this exhibition, the travel Yike (ID: carcaijing) realized that the motorcycle industry also presents many new characteristics.
The first is functional and application innovation.
Li Bin, executive vice president of the China Motorcycle Chamber of Commerce, told Carcaijing that the peak production in 2009 was nearly 30 million; With the popularization of automobiles into the home, the function of transportation has been replaced by automobiles, and production has declined.
Nowadays, China's motorcycles have entered a new stage of transformation and upgrading: the growth rate of electric motorcycles is significant, and the production and sales of standard electric mopeds exceed 20 million. Fuel vehicles will turn to leisure tourism, entertainment, and sports development, and electric mopeds will gradually become the mainstream products of short-distance transportation.
The intelligent level of motorcycles is also gradually improving, and functions such as automatic driving are gradually penetrating into motorcycle products to help riders experience safety and experience at turning moments, and improve the experience of assisted driving.
Zhang Guohua, chief engineer of China City Center, told carcaijing that the integration of competitive sports and cultural tourism represented by motorcycles can become a better economic growth point; Helping rural revitalization and efficient agricultural transformation; Diversify the travel modes of urban residents; On the basis of the last mile of express delivery, it is iteratively updated in the logistics ecology;
And then there's the new player.
The new forces of motorcycles also have new faces, Great Wall Motors launched eight-cylinder, DCT dual-clutch transmission, 2000CC motorcycles, creating three firsts in the motorcycle industry, the largest number of cylinders, the largest displacement, and dual clutch.
Wei Jianjun, founder of the Great Wall soul brand
Photo by Little Lion Yo-chan
Great Wall makes motorcycles partly because of feelings, Wei Jianjun, chairman of Great Wall Motors, once said: "Even if I don't make motorcycles, I have a lot of motorcycles." We also have a bunch of motorcycle enthusiasts in our company. To be honest, it was a bit of a fake feeling, and everyone decided to do it together. Anyway, no one in China has done it yet, and we just happen to have the ability. At that time, we also wanted to make a car that could be written in the annals of history and represent the latest technology and top of the line in China. ”
Automobile companies build motorcycles, and Great Wall is not the first case. Around the world, brands from Japan and Europe, such as BMW, Honda, and Suzuki, have been deeply involved in this field for a long time.
Among Chinese car companies, Geely Holding Group has Benelli, a veteran Italian motorcycle manufacturer, and well-known domestic motorcycle brands Qianjiang and Paifang, as well as Harley-Davidson and other world-leading motorcycle companies that have jointly developed models for the Chinese market. In addition, Wuling Motors is also making moves in the field of motorcycles.
02
Foreign trade is strong, domestic sales are slowing down
Not only are Chinese automobiles selling well overseas, but the export momentum of Chinese motorcycles is also quite strong, and foreign trade exports have been at a historically high level for three consecutive years.
According to customs statistics, China will export a total of about 11.415 million motorcycles in 2023, a year-on-year increase of 12.8%; The export value of motorcycles was about 7 billion US dollars, a year-on-year increase of 6.3%. From January to February this year, 1.405 million motorcycles were exported, a year-on-year increase of 42.3%, a record high for the same period in history.
Zhang Hongbo, secretary general of the China Motorcycle Chamber of Commerce, told Travel Yike (ID: carcaijing) that it is worth mentioning that in the first quarter of this year, 2.29 million motorcycles were exported, a year-on-year increase of 36%, accounting for 55% of the total output, a record high. Nowadays, with the significant improvement in the quality of Chinese motorcycles and the improvement of overseas reputation, it is not only cost-effective, but also begins to play a "price-quality ratio".
Li Bin, vice president of China Motorcycle Chamber of Commerce, said: "As one of the world's largest motorcycle production and sales countries, mainland China has always adhered to innovation-driven and quality-oriented in recent years, continuously optimized product structure, improved manufacturing level, and is committed to providing consumers all over the world with efficient, environmentally friendly and safe high-quality motorcycle products. ”
Professor Li Daokui of Tsinghua University
From the perspective of export destinations, in 2023, the top 10 countries in terms of China's motorcycle export value are Mexico, Turkey, the Philippines, Togo, Argentina, Italy, Colombia, Nigeria, Venezuela, and the United States. Among them, Mexico ranked first in terms of export value, reaching 840 million US dollars, a year-on-year increase of 19.6%, with a share of 12.0%.
Among the export enterprises, the data of the China Motorcycle Chamber of Commerce shows that the top ten enterprises in motorcycle exports last year were Loncin, Dachangjiang, Daye, Zongshen, Yinxiang, Haojin, New Continent Honda, Lifan, Universiade, and Aerospace Bashan, and the above ten enterprises exported a total of 4.93 million vehicles, accounting for 59.28% of the total motorcycle exports.
Since 2014, the annual sales of motorcycles in the world have remained around 50 million units, and Bao Zhengqin, co-founder of Kaiwei Group, expects to maintain a slight increase in the future. China, India and Southeast Asia are the main production and sales regions for motorcycles, accounting for nearly 78% of the total production and sales volume.
Export sales are booming, but domestic sales are a little tired.
In 2023, China's domestic sales of fuel motorcycles will be about 5.86 million (excluding imported vehicles), a decrease of 2.87%; From January to February this year, the domestic sales of fuel motorcycles were about 710,000, a year-on-year decrease of 21%. "Judging from the performance of the domestic market, the domestic sales of motorcycles in the mainland do have a slowdown trend in terms of total volume." Zhang Hongbo said.
On the reasons for the decrease in sales, Zhou Yunfei, general manager of Polaris Industries Co., Ltd. in Asia, believes that on the one hand, electric vehicles and automobiles are gradually replacing motorcycles as a means of transportation, and the laws and regulations prohibiting motorcycles also have many restrictions on the motorcycle industry; On the other hand, the homogenization of products is seriously competitive, and some manufacturers are unable and unwilling to invest in market promotion to reposition the motorcycle user base, and the motorcycle market as a means of transportation continues to retreat to marginal towns and villages.
Relevant studies in Europe show that 10% of motorcycles can replace cars, which can alleviate 40% of traffic congestion.
Li Daokui, dean of the Institute of Chinese Economic Thought and Practice at Tsinghua University, told Carcaijing that the current ban on motorcycles in 170 cities across the country, as well as the 13-year mandatory scrapping of motorcycles, have increased the burden on consumers and limited the development of the motorcycle market. He stressed that although the direct output value of the motorcycle industry is not high, its consumption potential is as high as one trillion yuan. Therefore, Li Daokui suggested that the motorcycle restrictions should be lifted as soon as possible to unleash the potential of this huge consumer market.
At present, it is in the wave of new scientific and technological revolution, which has brought unprecedented opportunities for the transformation and upgrading of the motorcycle industry. To this end, Zhang Hongbo called on the whole industry to seize this opportunity, strengthen cooperation and exchanges between enterprises, deepen communication and cooperation with government departments, take the initiative to assume social responsibility, and work together to shape a positive image of the industry.