Brands Cut Prices, Triggering a Price Drop Craze in China’s Motorcycle Market
Global News – China | As the gears of time roll into September, the second half of the year’s two-wheeled industry gala is set to commence. Events such as the Chongqing Motor in September, the Autumn Canton Fair in October, and EICMA in Italy in November are all significant in their own right. It was anticipated that the competition between the major brands would become evident with their new product launches and price announcements during these events. However, unexpectedly, the intensity of the competition in this year’s Chinese motorcycle market arrived sooner than forecasted.
Recently, motorcycle brands led by HAOJUE SUZUKI, CFMOTO, VOGE, CYCLONE, and QJMOTOR have been racing to slash their prices, creating a price drop frenzy in the Chinese motorcycle market. Tracing back, this wave of price cuts began with QJMOTOR announcing the price of its Racer 600 Bright Sword Edition. Following this, brands such as CFMOTO, VOGE, HAOJUE SUZUKI, and CYCLONE sequentially released their price reduction news.
July 13-14: QJMOTOR officially announced a price of RMB 39,999 for the Racer 600 Bright Sword Edition, with a direct reduction of RMB 2,000 for the Flash 300/350 models.
August 24: Although CFMOTO did not announce a price cut, it launched the 250SR-FUN version with a Chinese market price of RMB 15,980, pushing the price of 250cc models below RMB 16,000, an action even more impactful than a mere price drop.
August 31: VOGE officially declared price reductions for the AC525, 525R, DS525 standard/three-box version by RMB 3,000; CU525 by RMB 3,100; RR525 by RMB 5,000; and DS525X standard/three-box version by RMB 6,000. Moreover, existing users were offered vouchers ranging from RMB 1,500 to RMB 3,000.
August 31: HAOJUE SUZUKI announced price drops of RMB 3,000 to RMB 5,000 per vehicle for models such as GSX250R-A, DL250-A/C, TR300, XCR300, and GW250-A.
September 1: CYCLONE announced a price reduction of RMB 5,000 for RC401, RMB 3,000 for RX401, and varying reductions for other models like RC250, RA401, RA250, and RT2.
While the continual price cuts from these major brands are exciting for consumers, they also raise concerns. The hope lies in the product quality, which should not be compromised. It’s crucial for these brands to maintain quality control while slashing prices, ensuring that consumers not only get value for money but also peace of mind.
Regarding the 2023 industry situation, the “roll-up” of China’s motorcycle market is an inevitable outcome. Yet, whether it’s merely an internal consolidation or an expansion beyond the borders, we eagerly await insights from the EICMA in November.