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Chinese Domestic Market 2010 - Overview

ChinaMotorWorld Looks Back at Turbulent Year

ChinaMotorWorld, a leading English language trade publication about the motorcycle industry, published a year end review.  The article describes how the Chinese market has been the largest in the world by volume for 17 years, but it has also been synonymous with poor quality, and poor commercial performance overseas despite large unit sales.  Traditionally this has been attributed to the lack of spare parts availability, after sales care, inconsistant distribution and a very low profit margin pegged at an average of just 2.7%. 

Over the past few years a dramaitic improvement in many areas, from manufacturing qualtiy and the first factory supported export ventures, have increased the profile of many Chinese motorcycle brands and products in global markets, but says the report, a lingering problem is the lack of indigeneous R&D and original design and innovation.  The report cites many examples of collaboration with western brands, such as BMW, Peugeot and Piaggio as examples of technology transfer, but also points out that despite this, and substantial Chinese government support, national brands are still struggling to compete directly with western OEMs abroad.  Chinese exports fell by over 6M units in 2010, mostly as a result of shrinking demand and liquidity issues in developed markets.

ChinaMotorWorld.com is an online and print trade publication focused on the Chinese motorcycle industry.  Supported by China Chamber of Commerce Motorcycle (CCCM), it reports on national issues, reviews products and offers insight into the world's largest motorcycle market.

via ChinaMotorWorld.com

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