Motorcycle Manufacturing Industry in China: Slow Growth Ahead

Share Article

The Motorcycle Manufacturing industry in China is forecast to maintain slow growth in the next five years. Competition will become more intense, especially in terms of product quality, costs, types, brand and sales service.

IBISWorld Market Research

IBISWorld Market Research

In the five years to come, revenue of the Motorcycle Manufacturing industry is expected to grow at an annualized 1.8%, to $21.59 billion in 2016.

The development of the Motorcycle Manufacturing industry in China has been driven by strong domestic and foreign demand, due to higher motorcycle usage in recent years. Revenue of the industry is estimated to increase at an annualized rate of 7.9% in the five-year period through 2011, according to IBISWorld, America's largest publisher of industry research.

The global financial crisis negatively affected a wide range of Chinese industries as consumer income levels stagnated and external demand faltered. This industry saw revenue decline by 0.3% in 2009. With favorable policies implemented by the Chinese government in 2009, domestic demand increased as local consumption increases offset part of the export declines.

However, due to new motorcycle emission standards, which have been enforced since July 2010, output of the industry is expected to decline by 6.2% in 2011. Moreover, pressed by domestic inflation, government subsidies for purchasing motorcycles have been decreasing, and competition from electric bicycles and automobiles have intensified over the year. Industry revenue in 2011 is estimated at $19.77 billion, up 0.1% from 2010.

According to IBISWorld, industry output is forecast to increase by an average annualized rate of 5% per year in the five years through 2011. This year, China motorcycle manufacturers are forecast to produce about 25.9 million motorcycles, declining by 6.2% from 2010, mainly due to the drop in domestic demand during the year.

Unlike domestic demand, exports are expected to increase by 20.5% in 2011. The industry exports to many countries, most of which are in Southeast Asia, South Asia, Africa and the Middle East. Currently, sales to the US and European markets are increasing. In the five years to come, revenue of the Motorcycle Manufacturing industry is expected to grow at an annualized 1.8%, to $21.59 billion in 2016. The forecast growth is much slower than that of the current period because domestic demand for motorcycles is forecast to decrease during the next five-year period.

For more information visit IBISWorld’s Motorcycle Manufacturing in China report
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

The Motorcycle Manufacturing industry in China comprises establishments that manufacture standard two-wheel, three-wheel and sports motorcycles, as well as scooters. This includes standard motorcycles with sidecars. This industry does not include the manufacture of electric bicycles.

Main Activities
Manufacturing motorcycles

Motorcycle Manufacturing Industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jordan Ho
IBISWorld
+1(917) 267-0288
Email >
Visit website