Chongqing Motorcycle Industry Has Been Reborn
Affected by price war, consumption upgrading in domestic and foreign markets, and other factors, the overall production and sales of the Chinese motorcycle industry has declined continuously. The motorcycle industry seems to have come to the end of its glory days. However, in this depressed overall environment, Chongqing motorcycle enterprises have entered a new world.
Frequent cooperation with international giants
Former Chongqing motorcycle tycoons, such as Zongshen, Loncin, Shineray, have established cooperation with international motorcycle giants to explore the high-end motorcycle market.
Zongshen’s “CYCLONE” series continue to maintain a good momentum, and sales revenue increased 96% year-on-year in the first half of this year. The global motorcycle giants related to Zongshen include Europe’s largest motorcycle production enterprise PIAGGIO, the hundred-year old British brand NORTON, and the world-famous off-road brand SHERCO.
Shineray is specialized in retro bikes. As early as in 2014, Shineray spent 25 million euros acquiring the Italian famous off-road brand SWM. It established Shineray’s European center in Italy. Shineray’s RAMS440 ranks the third place on the 2019 China Large-Displacement Retro Bike list.
In 2005, Loncin successfully set up partnership with BMW on the 650cc engine project. On July 25, 2019, Loncin signed a long-term strategic cooperation agreement with MV Agusta.
Growth against the trend benefiting the supporting enterprises
Fu Lichuan, director of automobile department of Chongqing Commission of Economy and Information Technology, said that at present, there are 36 complete motorcycle enterprises in Chongqing, and more than 450 parts enterprises above designated size, with an annual output capacity of 10 million complete motorcycles and 20 million engines, and Chongqing’s motorcycle production and sales volume account for a quarter of the country’s total amount.
In 2018, the motorcycles’ production and sales volume in Chongqing reached 3.81 million units, up 3% year-on-year, achieving an output value of 83.5 billion yuan. This growing trend has continued in 2019. Chongqing motorcycle industry saw a total production of 1.869 million units from January to June, with a year-on-year increase of 13%. In the first six months of this year, the motorcycle industry recorded a year-on-year growth in output value of 4.8%.
Consequently, the production lines of the supporting (parts) enterprises are also busy. According to the head of Shunyouxiang Technology Co., Ltd, by enhancing independent R&D, improving product quality and laying out the high-end market, their products have been exported to Southeast Asia, Europe and other overseas markets, and their profits increased by 15% in the first half of this year.
7 years later, motorcycle becoming Chongqing’s “pillar industry” for the first time
The data also surprise the motorcycle industry. This year, in the quarterly economic operation information of Chongqing, the motorcycle industry is included in the “pillar industry of Chongqing” for the first time. And it is announced for growth in industrial added value together with the automobile and electronic information industries.
This year’s government work report has proposed that an important task to promote the high-quality development of Chongqing’s manufacturing industry is to develop new motorcycle products, improve the supporting capacity of key parts, and consolidate the motorcycle industry cluster.
It is predicted that global annual production and sales volume of motorcycles will remain at least 50 million units in the future. According to the Special Action Plan for Promoting High-Quality Development of Manufacturing Industry in Chongqing (2019-2022) released at the beginning of 2019, we must promote the transformation and upgrading of complete motorcycles to become green, smart, networked, lightweight and application sharing products, and further consolidate the leading position of Chongqing’s automobile and motorcycle industry in China. It aims to achieve an output of 4 million motorcycles by 2020 and 4.5 million units by 2022. (Source: www.newmotor.com.cn)