China March. Losing in double-digit the first quarter projects the year 1.5 million units down

Chinese Motorcycles Market

Chinese Motorcycles Market keep struggling in the 2019 reporting a huge fall after the first quarter. Sales declined 12% despite introduction on several new electric scooters in the market and the full year is now projected to lose almost 1.5 million units.

 

2019 Sales Figures

Chinese Motorcycles Market is not more the locomotive of the global industry since the 2015 government decision to ban motorcycles from urban center aiming reducing the pollution. The market lost near 10 million units in that single year and changed the basic trend from the previous fast growth to a steady decline, while the industry is developing the base technology to replace combustion vehicles with electric. The key point, actually, is that electric two wheels sold in China mainly regards the bike, with over 30 million units of e.bike sold in a year, but not the motorbikes.

Meantime the sales went down and in the 2018 the market landed at 15.5 million units, over 7 million below the global top market, the Indian.

The start of the 2019 is even worse, due to the internal low demand for consumption goods and persistent policy against pollution in all the large and medium tiers towns.

Indeed, according to date released by the Chinese Association of the Automotive Manufacturers, sales declined in the entire first quarter, with January and February, respectively by 22.9% and 11.6% before to the March figures, down only 0.6%. The total sales in the first quarter have been 3.4 million, down 12%.

The full year projection is for an annual lost of near 1.5 million units this year, with volume projected at 14 million units.

 

Economic Environment

Chinese economy appears to have bottomed out in March, with the manufacturing PMI returning to expansionary territory in the same month on the back of government support. Moreover, exports expanded at the fastest pace in five months in March.

Economic growth will decelerate this year due to subdued global demand, domestic vulnerabilities and the government’s plan to transition towards a more sustainable economic model. Although fiscal support and lose credit conditions are expected to support the economy going forward, trade negotiations with the U.S. will shape the economic outlook for China.

 

Market Trend

China’s motorcycle industry claims to have developed the largest motorcycle production center in the world. The industry is centered on three regions — Guangdong and Zhejiang provinces and Chongqing city in the Chongqing municipality.

China’s domestic motorcycle sales reached the all time record in the 2014 with 26.9 million sales.

During the 2015 the Chinese Government has taken the dramatic and unbelievable decision to ban motorcycles in urban centre (why not cars?) causing at the industry the deepest fall ever reported in the motorcycles world industry, when in the 2016 the market fell down at 16.8 million. The government has explained the decision aiming to cut down urban pollution and to imploring people to use public transportation. 

In the 2017 there was a little recovery when the market was up 2% at 17.1 million, but in the 2018 the commercial battle between US and CHina has reduced the domestic demand for consumer goods and the 2-wheeler sector was hit again. The year ended with 15.5 million vehicles sold, losing 9.1% from the previous year.

Actually the Chinese market is the second largest in the World after being overtaken in the 2016 by India and now stands in second place with a growing gap towards the leader and ahead of Indonesia and Vietnam.

Actually China represents 24.9% of global sales.

 

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