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Quality upgrade in the Chinese motorcycle industry

One of the main reasons for China’s kick up the bum quality wise is the introduction of Indian brands on traditionally safe Chinese markets, particularly those in Latin America. ChinaMotor Magazine’s Latin American correspondent Marco Tasca informs “the Indian industry is capitalising on the groundwork originally laid down by the Chinese. It was Chinese motorcycles that first enabled agricultural workers to mechanise and extend their profit margins, now with a bit of extra disposable income the same people who created China’s mini-monopoly are helping to destroy it by opting to buy 2-wheelers with a step-up in quality, namely Indian brands. Indian brands are still more expensive than Chinese brands but have a reputation for better quality. Not as good as the Japanese, but better than the Chinese. It also helps that India does not go in for universal rebranding of their products with brands such as Hero, Bajaj and TSV becoming renowned for their professionalism and value for money. This has caused the Chinese to rethink their strategies and improve quality as well as up-grade their after-market philosophy and at the moment they regaining the ground that they had once lost.”

Chinese motorcycle products are improving at a decent rate to almost universal acclaim. For many years China was renowned for manufacturing cheap ‘throw away’ powered 2 wheelers for 3rd world countries, it seems that now this has all changed. Chinese industry analyst and historian Winston Guo remembers “it was the philosophy of Chinese manufacturers to make money FAST! Quick bucks were what they were all about and they had sales networks in the markets to do that. This business model was not the negative experience that it suggests, as affordable motorcycles allowed impoverished workers/ land owners in developing nations to become mechanised thus enabling them to increase their productivity. These countries also had a DIY attitude to their bikes which meant that the after-sales supply chain wasn’t as important as it would be with developed countries.”

Another big reason for China’s industry rethink has been the downturn of its domestic market. The Chinese government has banned the use of motorcycles (but not electric scooters and bicycles) in almost all of China’s urban centres (the notable exception being Chongqing). This has naturally led to a huge drop in domestic sales (the drop numbering in the millions) and has caused many companies to restructure their campaigns to foreign shores. This big move to increase export has encouraged Chinese manufacturers (especially the big Chongqing companies) to enter markets that they would once have not paid much interest to; of course this has meant that they have had to spend money on research and development and design.

Chinese motorcycles are already gaining plaudits on western markets, with Britain’s Llexeter (vendor of the Lexmoto, Sinnis and Pulse brands) having just been voted ‘Scooter franchise of the year’ in the UK.  Daniel Frost told us “10 years ago they would have laughed at the suggestion of a Chinese brand being competitive against its European and Japanese rivals. 5 years ago they could feel that times were changing and many forecasted a change of dominance in the industry. This year Lexmoto became the first Chinese bike brand to take the Scooter Franchise of the year award.”

   2016-6-28
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