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From Scale to Depth: How China's Motorcycle Industry Is Navigating a New Growth Cycle

By DAN LIU|Sep 23,2026

Chongqing - What’s changing in the motorcycles riders around the world may soon see on the road? The 24th China International Motorcycle Trade Exhibition (CIMAMotor 2026) wrapped up in Chongqing on Sept. 22, where new models, smart technologies and global ambitions highlighted how China’s motorcycle industry is moving from manufacturing to brand building worldwide.

Visitors pose for photos with championship-winning motorcycles at the ZXMOTO booth during the 24th China International Motorcycle Trade Exhibition at the Chongqing International Expo Center on Sept. 19, 2026. (Photo/Chongqing Daily)

During the event, representatives from government, industry organizations, motorcycle and parts manufacturers, consulting firms, and investment institutions focused on one question: As the industry continues to expand, what will drive its next phase of growth?

The consensus was that low prices and high volumes are no longer enough. Competition is shifting toward technology, brands, supply chains, services, and global operations. For Chongqing, the task is to turn its complete industrial chain into an innovation advantage and move from product exports toward localized overseas operations.

Beyond low-price competition

Chongqing’s motorcycle industry is growing rapidly, with the city producing 7.776 million motorcycles in the first eight months of 2026, up 50.5 percent year on year, meaning that one in every three motorcycles produced in China is made in Chongqing, according to Wang Han, deputy director of the Chongqing Municipal Commission of Economy and Information Technology. 

During the same period, production of large-displacement recreational motorcycles rose 54.5 percent, while electric motorcycle production increased 63 percent. The figures reflect both growth in output and a changing product mix.

Li Yao, chairman of Loncin Motor Co., Ltd., said the industry has entered a new cycle, moving beyond low-price, high-volume competition. Motorcycles are evolving from transportation tools into lifestyle and leisure products, while gasoline and electric powertrains are increasingly coexisting. Competition is moving from assembly and manufacturing toward core technologies, while companies are also expanding into racing, customization, and user communities.

Against this backdrop, companies such as Zongshen and Loncin are pursuing higher-end, greener, smarter, and more global development, while seeking to give motorcycles both functional and emotional value.

Liu Xin, vice president of the China Chamber of Commerce for Motorcycles, said the industry faces trade barriers and tariff pressures overseas, as well as scrappage policies and tiered consumption taxes at home. He called for technological innovation to help companies move beyond homogeneous, low-price competition while maintaining compliance.

Wu Huacong, chairman of Jinlang Technology Co., Ltd., said changing consumer demand is reshaping the market. As motorcycles increasingly serve transportation, commuting and recreational needs, Chinese brands are no longer content with being overseas consumers' "first motorcycle"; they also want to become their second and third. Alongside industrial upgrading, the industry also needs to improve safety by strengthening product safety, rider training and safety culture.

Several industry representatives stressed that the "new cycle" is more than a change in terminology. Long-term competitiveness will depend on how effectively companies integrate engines, electronic controls, materials, software and user needs.

From industrial clusters to global competitiveness

Chongqing is now upgrading its "one-hour motorcycle industrial circle," with 431 major motorcycle parts enterprises and more than 80 percent of components for gasoline-powered motorcycles sourced locally. The city plans to focus on five areas: expand complete-vehicle production, strengthen supporting systems, expand international markets, build renowned brands, and foster motorcycle culture.

The concept is already taking shape at the district level. In Dadukou District, more than 350 motorcycle industry-related enterprises have gathered, with 85 percent of components sourced locally, forming a "15-minute industry ecosystem." Plans are also underway for an incubator park and shared testing ground.

Qijiang District is home to 11 motorcycle manufacturers and more than 60 parts suppliers, with 70 percent of components sourced locally. Leveraging its aluminum, copper, and magnesium resources, it is developing projects in lightweight components, precision gears, powertrains, and large-displacement motorcycles.

Whether the focus is on complete vehicles and consumer ecosystems or on special materials and core components, the underlying strategy points in the same direction: the industry cluster is not simply about putting companies close to one another, but about enabling the efficient flow of technology, orders, testing platforms and services.

From product exports to global operations

Xu Huxiong, global partner at Roland Berger, said going global is no longer an "option" but a "must" for Chinese motorcycle makers. Southeast Asia, North America, Europe, the Middle East and Africa all offer opportunities, but localization, data compliance, trade barriers, exchange-rate fluctuations and after-sales services can all erode profits. Xu said the next stage is about "going deeper" — in products, channels, supply chains, manufacturing and brands.

Li Yongsheng, co-founder and general manager of Jingzhidao Enterprise Management Consulting Co., Ltd., said Chinese motorcycle makers are shifting from simply "selling products overseas" to managing global operations.

Zhao Hong, general manager of KOVE, stressed the need to respect local rules, cultures and environmental requirements. He said racing events should serve more than a promotional purpose: only when extreme-condition data feeds into product development can they build lasting brand value. For overseas after-sales services, he suggested a gradual approach, from moving spare parts closer to dealers and training local technicians to building dedicated warehouses and service networks as vehicle ownership grows. "After-sales service is not a burden, but a brand moat," he said.

Bao Zhengqin, vice president of Keeway Group, agreed that dealers remain essential, but companies must gather first-hand market feedback and choose between dealerships and direct sales based on local conditions. Differences in resources, talent, systems, and product reserves mean growing companies cannot simply copy the strategies of larger players.

From a supply-chain perspective, Tang Enfan, an executive overseeing intelligent suspension at Chongqing Yu’an Intelligent Suspension, said overseas expansion by component makers is a growing trend, but factory investment requires caution. The biggest challenges in localization are often cultural differences, technical talent, and regulatory adaptation. In many markets, "Chinese R&D, Chinese management and local assembly" may offer a more practical path, while strategically located facilities can serve neighboring markets and improve response times.

He Yuhua, founding partner of Hygoal Capital, warned that heavy overseas investment can turn time and capital into sunk costs. Companies should assess at least five-year returns, market size, local supply chains and after-sales capacity before committing to factories, and work with local partners where possible. He also sees opportunities from gasoline and electric motorcycles reaching similar price levels, but said companies still need stronger channel control, ecosystem building and global financial capabilities.

Despite their different perspectives, the speakers agreed on one thing: the next phase of going global is not about adding sales outlets, but about building a sustainable system integrating products, culture, services, after-sales support and finance.

(Li Jiayan, as an intern, also contributed to this report.)

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