Freedonia Market Research Analyzes Motorcycle Industry in China

Demand for motorcycles in China is forecast to increase at an annual rate of 13.9 percent, reaching 44.4 million units in 2011.  Strong growth in the Chinese motorcycle market will be primarily spurred by a meteoric rise in demand for electric motorcycles.  Electric motorcycles are significantly less expensive than gas motorcycles, benefit from lower levels of government regulation and are popular among urban consumers as an upgrade to traditional bicycles.  Demand for traditional gas motorcycles will see steady growth, with sales especially strong in rural areas, driven by rising income levels. These and other trends, including market share and company profiles, are presented in Motorcycles in China, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Sales of electric motorcycles will grow 21 percent annually through 2011, and will surpass gas motorcycles as the larger motorcycle segment in China, due in large part to the cost-effective and environmentally friendly characteristics of these vehicles.  Demand for electric motorcycles is expected to reach 28 million units by 2011, with electric scooters and other more powerful machines dominating the market.  However, widespread counterfeiting in China is expected to lead to intense price competition going forward, which will restrict growth in electric motorcycle sales revenue.  Nearly all electric motorcycles are currently powered by lead acid batteries, although lithium batteries are beginning to make some inroads as a power source. 

The gas motorcycle segment will account for only one-third of the total motorcycle market in 2011, partly due to stricter government regulations on these types of motorcycles in urban areas.  The vast majority (over 90 percent) of gas motorcycles sold in China fall into the medium motorcycle category, whereas heavy motorcycles accounted for less than two percent of total demand in 2006, much less than in mature motorcycle markets.  Unlike many of the developed countries where motorcycles are often used for leisure and recreation, motorcycles in China are used almost entirely as a primary means of transportation.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.