Motorcycle industry in China

The motorcycle industry of the People’s Republic of China exceeds that of any country in the world with a motorcycle output of 22,891,700 in 2013, with 39.75% of the total production exported. China also produces auto rickshaws, all-terrain vehicles, and motorcycle parts and accessories in great numbers.

In 2013 the total revenue of the Chinese motorcycle industry increased by 3.24% year on year to RMB 112,621 million; including a year-on-year profit increase of 20.24% to RMB 3,322 million. This profit increase was mainly attributed to technical improvement and higher added value on motorcycles despite of the sales volume decreases suffered during industrial transformation in recent years.

Motorcycle manufacture in China first began in 1951 when the People's Liberation Army began producing a 500cc motorcycle to meet the country's military requirements during the Korean War. It was developed on the lines of the K500, a German model used in World War II. Before the end of the 1970s motorcycles produced in China were used mainly by the military services, the major exception being the Beijing Motorcycle Factory which from 1958 onwards produced motorcycles for the general public that were based on the German pre war BMW R71 and Russian Ural and Dnepr models. In Chongqing city in 1979 military munitions factory China Jialing Industrial Company began to independently manufacture motorcycles for civilian use ushering in the modern era of Chinese motorcycle production. In 2000 the Chinese industry took over as the biggest motorcycle producer in the world a position that it has maintained.

China’s motorcycle manufacturing industry is centred on 3 main regions- Guangdong and Zhejiang provinces and Chongqing city in the Chongqing municipality (the biggest centre of motorcycle production in the world).

China’s domestic motorcycle market has suffered a downturn in recent years due to the banning of motorcycles in many Chinese urban centres. China's domestic motorcycle sales reached a high of around 19,000,000 units in 2009 and then suffered gradual decreases for 4 consecutive years. In 2013, the market decreased by 5.73% from 2012 to 13,880,000 units, 26.94% less than 2009. Domestic sales decreased due to ban on motorcycles in urban centres, the national economic transformation and the rural market downturn. In Chinese rural areas, motorcycles are used for a variety of purposes, including personal transportation, passenger vehicles, and cargo transportation. Improved living standard in these areas in recent years has led to the replacement of motorcycles with mini-cars and e-bikes.

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Wikipedia