Why Chinese motorcycles pose no 'threat'

It's just another country doing business

Posted: 25 July 2012
by Visordown
Honda's CB750 ... plenty said it marked the end of the UK's motorcycle industry. Did it really?
40-years later, Triumph top the 'over 500cc' sales in the UK thanks to bikes like this: the Tiger 800
The CFmoto 650TR ... will it strip sales from the Deauville or cause Honda to up their game?
The Qianjiang QJ600GS ... Not the catchiest name but put Chinese cash into Benelli and you get this.

WITH the appearance of some credible-looking bikes like the CFMoto 650NK and 650TR, Loncin LX650 and the Qianjiang QJ600GS in recent months there's been growing rumbles in the bike press about the Chinese industry.

Words like 'threat' and 'invasion' are inevitably bandied about, as if Chinese bike makers are dead set on crossing borders in massed ranks, wiping out the opposition through strength in numbers and cheap price tags.

The fact is that yes, China is becoming a bigger player on the UK market, with overall numbers of Chinese-made bikes expected to surpass sales of Japanese machines in the near future (albeit mainly uber-cheap scooters, so while sales volumes are high they still account for a far smaller chunk of the overall amount of money being spent on motorcycling).

But those expecting the Chinese to come in and wipe out or seriously damage existing brands, mimicking the effect that Japanese imports had on European manufacturers in the 1960s and 1970s, have got the wrong end of the stick. History doesn't tend to repeat itself quite like that, and China's situation is very different to that of Japan fifty years ago.

Japan's export strength was a function of the country's engineering abilities, honed during WW2, and the fact that its economy was on its knees after the war. 'Export or die' might have been a British post-war saying but in Japan it carried even more truth, leading to government-controlled cooperation between companies with the simple intent of bringing more money into the Japanese economy. Firms were forced to work together, sometimes even merge, for the greater good of the Japanese economy. And the European manufacturers that Japan's bike makers hurt were generally complacent, over-confident and unwilling to change in response to their new rivals. Those that rose to the challenge survived, those that dismissed it didn't. Modern businesses, those that survived the Japanese challenge, were part of that challenge or have grown up since it, aren't likely to behave in the same way. They operate in a global market quite unlike that of the 1960s, when national pride, tax strategies and insular thinking meant buyers were far more likely to buy home-grown products than imports.

China is in a quite different economic position to 1960s Japan. Its economy is already huge – the second largest after America – and wealthy (it's the largest creditor in the world, lending money to other nations). It's also got an enormous population with fast-improving standards of living and wages. The result for Chinese bike firms is that the big money is to be made not by exporting to Europe and making large-capacity, Euro-friendly models but by concentrating on the ravenous home market. Sure, Chinese scooters are doing well in the UK, but largely as a result of western import businesses seizing opportunities to buy cheap bikes over there and flog them for peanuts over here. For the Chinese manufacturers themselves, we're small fry in comparison to the millions of potential customers they have on their own doorsteps.

Yes, now some big bikes are starting to emerge from China, but once again the target isn't a Japanese-style export boom – they're simply reflecting the growing affluence in China itself (where the likes of Ducati now also sell bikes to the growing numbers of wealthy Chinese businessmen that seem at odds with the concept of a communist country). If those bikes also appeal over here, then why not offer them to us as well?

The bikes they're turning out look increasingly decent, and in future you might well end up riding a Chinese-made bike (don't scoff, your dad probably would have done the same if you'd once suggested he'd ride a Japanese one). However, it won't be because Chinese bikes have somehow destroyed the industry elsewhere, it will be through choice. There's also a good chance it won't be a Qianjiang, Lifan or CFMoto, but something with a much more familiar name; after all, your iPod was almost certainly made in China but it's still an Apple product. Honda has factories in China, along with other established brands, while yet more already outsource production of components to Chinese firms. The fact is that China is already a world-stage player in the bike market – not a 'threat' or an 'invasion' but just another country doing business.



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why is the arrow on the firs picture coming from the direction of India?

Posted: 25/07/2012 at 13:24

I think China will have a massive effect on the established brands if they can keep their prices low. History does show that after initial quality issues and press bashings the products move to another level. Even if power and performance lag behind the best of the Japs and Europeans there will be riders wanting a decent, low cost no frills bike for everyday use, look at scooter sales recently. However, the added competition could also be beneficial to those that still want to buy Jap/European only. Yes a threat to other manufacturers but maybe not to the consumer in the medium term.

Posted: 25/07/2012 at 22:39

The one thing we learn from history, is that it has a tendancy to repeat itself. China does not play by the same economic rules as Japan did. Remember when we all laughed at the first Japanese imports. The motivation maybe different but simply because it is the 2nd biggest economy behind America is enough of an econmic motivation (economies of scale, market size, varied demographic levels to supply) to be a serious cause for concern already. Unlike America and other European manufacturers they are not bound by any motorcycle or manufacturing tradition, like America who are simply unable to make sports bikes for example. So China with ease will make precisely whatever is required (usually copies currently) to satisfy their fast growing domestic demand at low prices. If domestic prices are low then exports occur. And with Chinese courts not really interested in patent law (BMW X5 copy) the the road to parity of development is quicker.

Posted: 28/07/2012 at 09:43

I would not buy a Chinese bike, cheap low quality shit like everything else that comes out of China.

Posted: 31/07/2012 at 13:44

A young lad I know, (just 19), bought a brand new chinese 125 chopper style bike 2 months ago. It's already spent 1 month in the workshop and had a new exhaust and engine parts under warranty. The chrome on the nuts and bolts and mudguards is rusting, and the paint isn't good. He regrets buying it and wishes he got a Honda etc instead.....Threat from China? Not from rubbish like this....The word soon spreads!

Posted: 31/07/2012 at 14:15

If you think China doesn't pose a threat then I would suggest you look at what they have done, motorbikewise, in Africa. They used to be dominated by Yamaha and Honda but now are awash with cheap Chinese imports (and I do mean awash!) - There are hundreds of thousands of them - all with brand names like errr KTM (I kid you not). They have the size and strength of economy that means they can flood a country with ridiculously cheap bikes (like 300 Euros) and simply wipe the competition off the face of the planet

Posted: 31/07/2012 at 14:19

The Japanese satisfied the home need for cheap postwar transport and honed their bike design and building skills doing that. It was not until the late 50s that they began to seriously look at foreign markets and not until the early 60s that they begun to export in serious numbers.
Even then we took no notice.
Edward Turner of Triumph went so far as to say that the Japanese imports were good for the UK industry. He believed that the Japanese were incapable of building big bikes but that their small bikes would attract new people into the market and those people would then turn to British machines when they wanted something bigger.
Then they brought out the CB450...
If China want the bike market, they'll have it and they'll up the quality if needs be. A lot of the reason their stuff is poor quality is due to the fact that their Western customers try to get the price down as low as they can. The Chinese response to the chiselling purchasers is simply to give them the crap their greed deserves.
They are perfectly capable of making good stuff - Apple Computers, Tablets and iPhones, for example.
I think this article is a touch naive.

Posted: 31/07/2012 at 14:44

At the moment the Chinese market is purely the Pound-Shop. Cost is everything. So they sell scooters to teenagers and bikes in Nigeria.
Once they up their game as to quality (the Japs came with small bikes that performed like big ones), they'll be taken seriously.

Posted: 31/07/2012 at 20:09

We are going through a global re-distribution of wealth, meaning that an increasing number of "Westerners" will only afford a Chinese bike. This will soon fund the Chinese S1000R - no doubt if you ask me !

BTW, I assume that similar articles were written when Honda entered the TT races for the first time half a century ago.

Posted: 02/08/2012 at 13:44

when the Chinese sell enough scooters... they will take the money and buy the mainstream brands.
Then we will have no choice.

Posted: 03/08/2012 at 03:10

From what I can see here in the Philippines, they are already upping their game. Some of the new models bear no resemblance to what was produced a few years ago.
Quality of manufacture and design have both improved a lot, although still admittedly below that of the best Japanese bikes.
I hear the cries of 'junk' that seems synonymous with Chinabikes, but that is as much due to the importers asking for the cheapest possible prices.
I have ridden some chinabikes from a few years back in SE Asia that really were junk, but we have also owned more recent models, that seem about as good as a lot of the Japanese (actually Philippines / SE Asia / China sourced parts and sometimes complete motorcycles) bikes and much cheaper.

From a world wide perspective, it is likely the Euro bikes (and increasingly the Jap bikes)are already largely irrelevant, as they represent a small and shrinking slice at the top of the overall bike market.
The overall majority of bikes sold worldwide are at the smaller / cheaper end of the spectrum, and here the Chinese are selling ever more (and increasingly better) machines, whether that is Asia, Africa or South America.

Posted: 03/08/2012 at 06:08

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