Middle and Large Displacement Motorcycles Rise

Middle and Large Displacement Motorcycles Rise Middle and Large Displacement Motorcycles Rise motorcycle news MEGA CHINAMOTOR 03
CHINAMOTOR, Chinese brand
November 18, 2022
Posted by: chinamotor

On August 29, Qianjiang released its 2022 semi-annual report. During the reporting period, the company achieved revenue of 2.583 billion yuan, a year-on-year increase of 21.20%; Net profit reached 200 million yuan, up 16.95% year on year. A number of motorcycle manufacturing enterprises saw good half annual report performance this year. CFMotot achieved a net profit of 306 million yuan in the first half of the year, a year-on-year increase of 38.29%; Linhai recorded a net profit of 9,117,400 yuan, a year-on-year increase of 21.87%; Lifan achieved a net profit of 99,323,100 yuan, an increase of 165.58%; Loncin posted a net profit of 564 million yuan, up 9.31% year on year.

Industry insiders believe that in the first half of this year, the motorcycle consumption market was stable with changes. The growth rate of large entertaining motorcycles is gradually increasing, and electric motorcycles are becoming a new market for motorcycle enterprises.

Middle and Large Displacement Motorcycles Rise Middle and Large Displacement Motorcycles Rise motorcycle news MEGA CHINAMOTOR
CHINAMOTOR, Chinese brand

Middle and large displacement motorcycles are emerging

Data from the China Chamber of Commerce for Motorcycle showed that in the first half of 2022, the whole industry completed motorcycle production and sales of 10,554,300 units and 10,7222,600 units, down 15.59% and 14.38% year-on-year. However, the production and sales of large and medium displacement motorcycles were 211,500 and 222,200 units, respectively, with year-on-year growth of 40.56% and 46.59%, a significant growth against the declining industrial trend.

“In the first half of the year, sales of large and middle displacement motorcycles increased significantly, mainly due to changes in consumption trends. In general, small displacement motorcycles are more suitable for short – and medium-distance commuting, while large displacement motorcycles are more used for leisure and entertainment.” Qian Xiangjin, a distinguished professor of the School of Management of Zhejiang University, told the Securities Daily. With consumption upgrades, mass consumption changing to quality and personalized consumption, domestic motorcycle consumption is shifting from small displacement products to large displacement models. In the future, large and middle displacement motorcycles will become the main category to drive the development of the motorcycle market.

The sales data of many motorcycle enterprises truthfully reflect the “heat” in the large displacement motorcycle market. Qianjiang’s semi-annual report shows that in the first half of this year, the company had accumulated sales of large displacement motorcycles of about 82,000 units, a year-on-year growth of about 68.36%. The company’s sales of large-displacement products ranked first in the domestic industry, and is the company’s main source of profit. According to Loncin’s semi-annual report, the sales volume of the larger displacement products represented by SR4Max increased by nearly 60% year on year in the first half, with the average income per unit increasing by nearly 10 percentage points year on year. In June alone, CFMoto’s sales of 250CC+ motorcycles exceeded 3,300 units, up 45.4% year on year.

“In recent years, domestic motorcycle enterprises have explored new technological routes and transformation and upgrading, and launched personalized and specialized products to meet the needs of a new generation of consumers. With the rise of young consumers, more domestic motorcycles began to focus on developing fashion, cool, sci-tech products. The high-end market is in full swing, and the sales of large and middle displacement motorcycles are hot,” said the national cultural trade innovation development think-tank expert Zhang Dexin. As the domestic and overseas markets mature and the consumption level continue to rise, enterprises with technology advantages and brand strength will maintain a higher level of growth. The leisure and entertainment motorcycle market will further enhance.

According to the Research According to the report of West China Securities, the current development stage of large and medium-sized displacement motorcycles is similar to the SUVs in 2013 to 2014. The launch of new models and new brands by the leading companies provides the core driving force for the industry development and the rapid expansion of the market. Referring to the development history of domestic automobiles and the competitive pattern of overseas motorcycle market, independent brands are expected to be the biggest beneficiaries of the rising demand for large and middle displacement motorcycles.

Middle and Large Displacement Motorcycles Rise Middle and Large Displacement Motorcycles Rise motorcycle news MEGA CHINAMOTOR 02
CHINAMOTOR, Chinese brand

Motorcycle electrification is the general trend

The motorcycle industry, like the automobile industry, is gradually becoming electric. “In recent years, the electric motorcycle industry has entered a period of rapid growth driven by favorable policies and rapid development of application scenarios,” said Wang Chikun, an institute researcher.

Wang said the country continues to introduce incentives to encourage the use of new energy vehicles and other green vehicles to travel, electric motorcycle travel has become more people’s choice; moreover, under the background of increasingly congested urban traffic, electric motorcycles are favored by the majority of “office workers” due to their advantages in speed and passing ability. In addition, the rapid development of application scenarios such as express delivery and food delivery has also spawned the market demand for electric motorcycles.

According to ZERO POWER, by 2027, China’s motorcycle production will reach 22.5 million, with a compound annual growth rate of about 5%, among which the proportion of electric motorcycles will grow from 20% to 30%, and the average annual growth rate of electric motorcycles is predicted to be 15%.

In this context, many traditional motorcycle companies began to explore the new electric motorcycle market, some of them have set up a new energy brand. CFMoto’s electric brand “ZEEHO” officially released its new electric motorcycle model AE8 at the beginning of this year; Qianjiang released its first electric race-aping motorcycle OAO in July; Loncin officially launched its electric motorcycle brand “BICOSE” and the first model Real 5T on July 29, aiming at the high-end market.

“Increasingly mature battery, motor, electronic control technology, as well as the Internet of Things, internet, AI and other technologies, will promote the electric transformation of fuel motorcycles including large displacement models. Electric motorcycles will be more intelligent, personalized and high-end in the future,” said an industry insider to Securities Daily reporter. This is a good thing for leading enterprises with advanced technology, complete qualification, large scale, and diversified channels, which will also drive market concentration.

Middle and Large Displacement Motorcycles Rise Middle and Large Displacement Motorcycles Rise motorcycle news MEGA CHINAMOTOR 04
CHINAMOTOR, Chinese brand

Source: https://www.newmotor.com.cn    

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