"Your motorbikes are at the right price!" In the promotion area of the foreign trade transformation and upgrading base of motorcycles and parts at the Canton Fair, a foreign buyer said to You Yuxia, the market development specialist of Keren Electric Technology (Zhejiang) Co., Ltd. You Yuxia told CBN that their flagship electric motorcycle is priced at $780 (about 5,560 yuan).
On October 15~19, the first phase of the 136th Canton Fair, focusing on the theme of "advanced manufacturing", was held in Guangzhou. Among the 16 promotion areas for foreign trade transformation and upgrading bases specially set up at this Canton Fair, the "motorcycle and parts" category occupies two seats, which is the only category with two seats except for home appliances.
This "preferential treatment" is not unfounded. According to the data of the General Administration of Customs, in the first eight months of this year, the number of motorcycles exported by China reached 23.57 million, a year-on-year increase of 34.0%, and the amount reached 68.22 billion yuan, a year-on-year increase of 22.6%. Among them, the number of electric motorcycles and bicycles exported reached 14.25 million, a year-on-year jump of 43.4%, and the amount was 28.4 billion yuan, an increase of 26.6%.
Reflecting the rapid growth of motorcycle exports, the mainland's export momentum of mechanical and electrical products is also strong. According to data released by the China Chamber of Commerce for Import and Export of Machinery and Electrical Products on the 15th, in the first three quarters, the export volume of key industries, which accounted for 41.6% of the total export of mechanical and electrical products, increased year-on-year, and the total growth rate of mechanical and electrical exports increased by 5.6 percentage points. Among them, the export value of key industries such as general machinery and equipment (11.1%), household appliances (13.5%), integrated circuits (19.8%) and automobiles (20.7%) all achieved double-digit year-on-year growth, and the driving effect was significant.
Why Chinese electric motorcycles are favored by buyers
Currently, the global demand for electric motorcycles continues to rise, driven by low operating costs and government incentives. According to market research firm Technavio, the electric motorcycle market size is expected to grow by USD 247.8 billion between 2023 and 2028, with a compound annual growth rate of 35.34%.
Regionally, this year, India launched a new electric vehicle program that provides incentives for commercial electric vehicles, electric two-wheelers and electric three-wheelers, and related subsidies will support the purchase of 247,900 electric motorcycles. The Indonesian government also plans to have 2 million electric motorcycles on the road by 2025 and gradually reduce the use of gasoline vehicles. In Africa, the Rwandan government has reinstated zero import duties on electric and hybrid vehicles and extended the tax holiday until the end of the 2024/2025 fiscal year.
You Yuxia told the first financial reporter that the 135th Canton Fair in the spring of this year was the company's first time to participate in the exhibition, when the booth area was only 50 square meters, but due to outstanding performance, the company's exhibition area was expanded to 81 square meters.
"During the Spring Canton Fair, we reached exclusive agency agreements with a number of buyers, and these agency agreements have a term ranging from 5 to 10 years. According to the agreement, we set clear requirements for the annual purchase volume of our agents. For example, for our luxury smart model 'Stardust', dealers need to sell at least 1,000 units per year, and another model, the STR 5, needs to sell 300 units per year to obtain exclusive agency rights in a country or region. You Yuxia introduced that these exclusive agency agreements are located in Europe, Southeast Asia and North Africa, and the European market is mainly concentrated in Eastern European countries, such as Hungary and the Czech Republic.
"In the first half of the year, we have signed eight such agency agreements, so we are very confident in this autumn fair." She said.
Wang Dehai, an engineer from Zhejiang Luju Vehicle Industry Co., Ltd., located in the same exhibition area, also told the first financial reporter that the company offers a variety of models, including cargo tricycles, motorcycles, scooters and mountain bikes. Demand for products varies from market to market, for example, cargo tricycles are selling well in Africa. "On the morning of the opening day of the Canton Fair, we received many batches of buyers from Africa." He said.
The market for electric motorcycles in the commercial sector, such as delivery fleets, is expected to grow rapidly, driven by the growing preference for greener transportation solutions. You Yuxia has also spotted this trend, and its customer base is very diverse, ranging from customers who have opened physical stores, to online and offline influencers, to operators in the tourism and food delivery industries, and to customers involved in government procurement projects.
Chinese robots enter the "blank area" of the market
In addition to electric motorcycles, the mechanical and electrical products exhibition area of this Canton Fair has also "put on the shelves" many products with increasing technological content and brand value.
In the huge exhibition area of Guangdong Duni Intelligent Robot Engineering Technology Research Center Co., Ltd. in the Canton Fair Hall, several sweeping robots with a small volume are diligently mopping the ground, and the company's several sales representatives are also pulled by buyers from different countries and regions to ask about product details.
Xiong Mincheng, a sales representative, told the first financial reporter: "We mainly export commercial and civil cleaning robots. In the past two days, the customers who have come to inquire are widely distributed. Although the unit price of the product is not low, these buyers are more concerned about the quality of the product. In their view, the quality and technology of Chinese products are relatively advanced. ”
Pointing to one of the largest cleaning vehicles in the venue, he said, his product has almost no competition in the international market, and it can automatically lift, recognize the height of the trash can and complete the dumping of garbage. This is very much in line with the "pain points" of developed markets, where local labor costs are high and there is more demand for such fully automated cleaning robots.
Shanxi Jiashida Robot Technology Co., Ltd. has also identified the gap in the relevant market, released and continuously iterated more intelligent household glass cleaning robots. Niu Liqun, chairman of the company, told the first financial reporter: "Compared with the previous generation of products, our algorithm has been greatly improved, and it can automatically calculate the operation method according to different application scenarios, such as the glass roof of the inclined sun room and some special-shaped glass." ”
Niu Liqun said that in the first three quarters of this year, the company's export volume achieved a 150% increase, and the main export markets are in Europe, South America, North America and Southeast Asia. "The problem of cleaning glass is common all over the world, but such robot solutions are only done by Chinese companies, and relevant international standards will also be formulated by Chinese companies in the future." He also revealed, "Since participating in the Canton Fair eight or nine years ago, 80%-90% of our company's orders have been obtained through the Canton Fair platform. ”
Zhuhai Ansja Electronics Co., Ltd., which sells cameras, has won the favor of customers through scientific and technological innovation. Sun Yuping, the company's overseas sales director, told the first financial reporter: "Our Aurora series can shoot colorful pictures in dark conditions without the help of infrared lamps and fill lights. This is a big technological leap. All the exhibits on the display wall are traditional advantages of the North American market, where there is a large demand for anti-theft, and a family may need seven or eight devices to detect, and our products are very popular in the local market. ”
He Hai, sales manager of Timco Electric Appliance Co., Ltd., also believes that the stir-fry robot developed by the company is facing a huge market blue ocean. "The stir-fry machine is not a new product, but at present, in the stir-fry machine market, the proportion of this kind of small, beautiful and highly intelligent products is only about 5%. There is a lot of demand from many buyers, but due to the low supply in the market, many customers are frantically searching for this type of product both online and offline." He said the company's products grew rapidly after they hit the market, with shipments tripling in the second month of a new product launch.
Competitive Advantage & Export Strategy
Talking about its own advantages, You Yuxia said: "All of our exhibited models are independently developed, and the molds are completely designed and manufactured by us. This self-developed and self-made model makes our products unique in the market, compared to some companies that may rely on 70% of public molds, and only 30% of them choose to open their own molds. ”
You Yuxia said that the company has launched a variety of configuration solutions for different market needs to meet user preferences in various regions. "For example, for the European market, we have Lite and Pro versions that are certified by the European Economic Community (EEC); In the Middle East and Eastern Europe, in order to balance high quality and price, we have launched a lower power Lite version; In the Southeast Asian market, we also offer more affordable versions with lead-acid batteries. ”
Xiong Mincheng also revealed to the first financial reporter that their highly independent research and development capabilities support them to meet the personalized needs of customers. "We basically do customized production, and we can produce exactly the robots they need for each customer. This is one of our strengths, because the hardware and software of these products are built by our own engineers, so that no matter what the customer thinks, we can modify and implement the customer's needs from the bottom up. He said.
Wang Dehai introduced that the market competitive advantage of the green horse car industry is not only reflected in the price, but also in the safety performance of the product. "The main cables and motors are produced in-house and do not rely on external suppliers, while many competitors rely on outsourcing for some of their critical components. We ensure product quality and safety through the whole process of self-production, from parts to vehicle production. Wang Dehai introduced that the company can customize different versions of products according to the needs of various regions, covering motor power, appearance design and environmental protection requirements.
In the past, Luju Automobile mainly focused on the domestic market, but now it actively responds to the national "going out" strategy and expands overseas markets. "In terms of export business, we not only carry out market development ourselves, but also actively look for suitable agents. As some markets are still blank, we also hope to negotiate with high-quality customers at this Canton Fair, explore cooperation opportunities, and accelerate the pace of entering markets around the world. Wang Dehai said.
(This article is from Yicai)