An Analysis of the Development Overview of China's Motorcycle Parts Industry
Release time:
2022-02-25
In recent years, motorcycle sales in China have continued to decline, with the domestic market facing dual pressures from both the ban and restriction policies on motorcycles and market adjustments.
In recent years, motorcycle sales in China have continued to decline. Among them, the domestic market has been severely squeezed by the combined pressures of motorcycle restriction policies and market adjustments. Against the backdrop of a gradually shrinking domestic motorcycle market, motorcycle manufacturers have shifted their focus primarily to overseas markets, stepping up efforts to develop these markets and thereby alleviating competitive pressure from the domestic market.
Looking at the regional distribution of China's motorcycle exports, after years of dedicated efforts to expand markets, domestic motorcycle companies have successfully implemented a diversified international market strategy. As a result, motorcycle exports have shifted from previously relying solely on the Southeast Asian market to a promising situation in which multiple export markets are developing together.
Currently, China’s motorcycle exports reach nearly 200 countries and regions, with export markets increasingly aligned with the growing demand in emerging developing countries. However, affected by factors such as a slow economic recovery and regional political instability, China’s motorcycle exports saw a significant decline in 2015. Although exports continued to reach all five continents, only Latin America maintained growth, while Africa and Europe experienced declines of over 20%.
Although the export situation has somewhat declined, the geographical and climatic conditions as well as the economic circumstances in Asia-Africa and South America regions dictate a long-term, stable demand for motorcycles. As political stability and economic recovery take hold in these regions, they continue to hold considerable demand potential. After years of extensive market development, Chinese motorcycle manufacturers have established strong, long-term footholds in these regions, leaving still some room for growth in overseas markets.
The overall production and sales situation of the motorcycle industry is closely linked to the motorcycle parts and components industry, which boasts a wide range of products and diverse product types. Strong demand in the motorcycle industry directly boosts the development of the parts and components sector, whereas when the motorcycle industry as a whole encounters obstacles, the parts and components industry generally shows a gradual downward trend as well.
However, due to the presence of failure factors and the need for component replacements, the downturn in the parts industry will be less pronounced than that in the motorcycle整车 industry. Consequently, although the motorcycle industry has recently declined as a result of urban restrictions on motorcycles, the decline in the parts industry has not been as noticeable. Like automobiles, motorcycle parts serve as the foundation for innovation in the overall vehicle product.
From a technical structural perspective, a motorcycle is a complex integrated system composed of various subsystems—including the engine, fuel supply, ignition, transmission, running gear, braking, and steering—that together involve hundreds of different parts and components.
Many enterprises have been struggling to achieve mass production of high-displacement motorcycles, or even after mass production, these motorcycles continue to suffer from frequent problems—mainly due to substandard quality of key components or poor production consistency. Therefore, innovation in motorcycle components serves as a crucial driving force behind technological innovation and product development for the entire vehicle, and it also provides an important guarantee for the joint development of both vehicle manufacturers and component suppliers.
Currently, China has basically achieved independent production of all motorcycle components. Most motorcycle parts are domestically produced, with only a small number being imported. In terms of both production capacity and cost-effectiveness, China’s motorcycle component products rank among the world’s top. In addition to meeting domestic market demand, China’s motorcycle components are also exported overseas.
From the perspective of exporting countries, the Asian region is China's primary market for motorcycle parts exports. The main countries to which China exports motorcycle parts include: India, Nigeria, Vietnam, Indonesia, Malaysia, the United States, Egypt, the Philippines, Brazil, and Thailand, among others.
Looking at the types of motorcycle parts exported, China’s motorcycle export products mainly include wheels, shock absorbers, engines, and other components, with wheels accounting for the largest share of exports. Among the top 20 companies in terms of motorcycle parts export value in 2014, four were wheel manufacturers, and their combined export value accounted for 44.53% of the total export value of all 20 motorcycle parts enterprises.
With the implementation of China’s Stage IV motorcycle emission standards, China’s motorcycle parts industry has entered a new stage of development.
On the one hand, the stricter emission standards have raised the technological threshold, requiring motorcycle parts companies to vigorously develop new technologies and processes and enhance both product technology and manufacturing capabilities.
On the other hand, as emission standards become stricter, the overall production costs for component manufacturers have risen significantly. Motorcycle manufacturers therefore need to enhance their management capabilities, adopt lean management principles, and control both product quality and manufacturing costs at scale, thereby reducing internal inefficiencies and improving their overall performance.
Chinese motorcycle parts enterprises will enhance the overall level and efficiency of the industry by focusing on improving their technological R&D capabilities and implementing lean management practices, thereby fostering mutually beneficial and collaborative development between the parts industry and the vehicle manufacturing industry.
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