Chongqing- Industry data showed that China's motorcycle manufacturers reported a decrease in sales in the year's first quarter. However, the total sales volume of five Chongqing-based motorcycle enterprises accounted for nearly 50% of all Chinese motorcycle sales in the first quarter.
Meanwhile, the sales of large-displacement recreational motorcycles increased against the national trend. Data showed that medium and large-displacement motorcycles had become a new development path for the motorcycle industry, especially for Chongqing motorcycle companies.
China's motorcycle capital
From January to March, the domestic motorcycle industry produced 4.08 million motorcycles. According to data released by the China Chamber of Commerce for Motorcycles, it sold 4.11 million motorcycles, with production and sales down 12.48% and 13% yearly. The sales of large-displacement recreational motorcycles increased, of which 312,400 and 314,800 250cc medium and large-displacement motorcycles were produced and sold in the first quarter, with year-on-year growth of 2.19% and 0.48%.
The large-displacement recreational motorcycle made in Chongqing was exhibited at the 19th China International Motorcycle Trade Exhibition. (iChongqing file photo)
Chongqing is the only megacity in China that allows motorcycles to run on city roads and is one of the most inclusive cities for motorcycles. Buildings in the mountain city are spread in a high-density pattern. Motorcycles run fast and flexibly, making them one of the most effective means of transportation for Chongqing people.
As the largest motorcycle-producing city, Chongqing accounts for a quarter of the world's total output and a third of the country's total export value. For example, well-known companies like Zongshen, Lifan, Jialing, Jianshe, and Loncin are headquartered in Chongqing, making it a veritable motorcycle capital.
According to released data, Chongqing's Loncin, Zongshen, Lifan, and Yinxiang are among China's top ten motorcycle enterprises in 2021. The total sales volume of these four motorcycle companies accounted for 42% of the top ten's total.
The first quarter shows that the proportion of the sales volume of Chongqing's five companies in domestic top motorcycle companies has increased from about 40% in 2021 to nearly 50%. These five are Loncin, Zongshen, Lifan, Yinxiang, and Jianshe.
End of the low-cost motorcycle industry
"In the competition of medium and large-displacement motorcycles, Chongqing motorcycle enterprises are one step ahead, grabbing more market shares," said Qu Yunchao, a market observer.
Loncin, its VOGE series of large-displacement motorcycles, has achieved an annual sales volume of over 20,000 since 2020, with a growth rate higher than the industry average. Last year, Loncin achieved annual revenue of 7.558 billion yuan, a year-on-year increase of 39.55%, driven by sales growth and export growth of the VOGE series of large-displacement motorcycles. The sales volume of Zongshen large-displacement motorcycles has almost doubled every year in recent years.
In the next few years, the Chinese motorcycle market may shift from a "tool car market" to a "toy car market," which means that the era of low-cost mass production in the motorcycle industry will end.
A market observer said that the future rural market would shrink gradually while the urban motorcycle market would increase. With the rapid development of the large-displacement recreational motorcycle market, Chongqing's motorcycle industry will benefit from a long "window period."
The epidemic and overseas geopolitical uncertainties slightly impacted motorcycle exports in March. China's motorcycle exports rose month-on-month with a significant year-on-year decline. Despite the further decrease in cumulative export volume from January to March, the export value still maintained growth due to the rising costs of raw materials and logistics.
In the medium and long term, with the gradual recovery of overseas supply and the slow recovery of the global economy caused by geopolitical conflicts, the costs of raw materials and others remain high, and the pressure on China's motorcycle export will increase.