 
October 2003
154 pages
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US$1,300
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Table of Contents
This Access Asia reports looks into the motorcycles market in China, and assesses the chances for success in the domestic market, the effect of motorcycle bans and foreign competition.
Extract
This report covers the market for motorcycles and motor scooters in the People¡¯s Republic of China. The motorcycle manufacturing industry has been through turbulent times in recent years. There are three key reasons for this: First, a ban on bikes in cities hit manufacturers hard. Second, the huge profits the industry saw a few years ago stimulated investment in the sector by various enterprises and local interests, much of which was simply blind investment that made the situation worse. Third, orders fell rapidly as fake and shoddy products flooded the market.
The tremendous profitability a few years ago induced several local governments to encourage small domestic companies to make bikes. So many local manufacturers rushed into market that increased competition triggered a price war that pushed down motorcycle prices by 10% a year over two years.
Counterfeit and black-market motorcycles have also given motorcycle manufacturers problems.
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