Ducati CEO Claudio Domenicali says Chinese motorcycle brands are forcing Europe to rethink

The Ducati CEO, Claudio Domenicali, says Chinese manufacturers are moving too quickly for Europe to take success for granted.

The days of European motorcycle bosses dismissing Chinese manufacturers as cheap copycats are officially over. And that isn’t my opinion; it’s the view of one of the most important CEOs in global motorcycle manufacturing.

Speaking to MCNews during World Ducati Week, where the Italian firm celebrated its 100th birthday, Ducati’s CEO Claudio Domenicali admitted Chinese manufacturers have become one of the biggest challenges facing Europe's premium brands.

According to Domenicali, the first mistake would be assuming that Ducati's position at the top of the market is a dead cert.

"Success is not granted," he said. "It has to be regained continuously over time."

It's a striking admission from the man running arguably the strongest motorcycle brand in the world right now. Ducati dominates MotoGP, its road bike range has never been broader, it’s breaking into new sectors like MX and enduro, and its balance sheet remains healthy enough that Domenicali insists the company doesn't require support from its parent company to fund future models.

the Ducati Desmo450 EDS - riding
the Ducati Desmo450 EDS - riding

Yet even Ducati can see the direction of travel. Chinese manufacturers are arriving with increasingly sophisticated engines, premium components, aggressive pricing and access to many of the same suppliers used by Europe's established players. Brands such as CFMoto, QJMotor and Zontes are already proving that the old assumptions about Chinese motorcycles no longer apply. The industry that was once viewed as a comedic copycat and a bit of a laughing stock is now matching the tech, spec, and performance of the established names from Europe and Japan. And, as is the case with ZXMoto, Chinese brands are winning at world championship level too.

ZXMoto 820RR-RS World Supersport bike.
ZXMoto 820RR-RS World Supersport bike.

But how do you battle the brands from a nation with an almost infinite workforce, and access to significantly cheaper labour than the rest of the world? Domenicali was blunt about one reality of that particular point; Europe cannot win a price war.

Raw material costs are broadly similar worldwide, but labour and energy costs in Europe remain significantly higher than in China or India, meaning manufacturers like Ducati simply cannot compete on manufacturing costs alone. Instead, Domenicali believes its advantage lies elsewhere.

Racing success, dealer experience, owners' clubs, factory visits and, in recent years, events such as World Ducati Week have become just as important as bikes in a showroom.

"We are not selling the bike," said Domenicali. "We are selling the package."

In other words, Ducati believes Chinese brands can build motorcycles that rival European machinery on paper. What they can't yet replicate is 100 years of heritage, MotoGP trophies, a factory in Borgo Panigale and an owner community that sees itself as part of something bigger than the machine parked in the garage.

Ducati Forma at Fuorisalone
Ducati Forma at Fuorisalone

If all of this sounds familiar, it's because the car industry has been having the same conversation for years. Executives from brands including BMW, Volkswagen and Ford have all warned against underestimating Chinese manufacturers, many of whom now build electric cars that equal or better their Western rivals on technology while undercutting them on price. 

Volkswagen in particular has felt the pressure, as Chinese EV makers continue to squeeze margins and increase market share in one of the group's most important regions. That situation inevitably helped fuel last week's rumours surrounding a potential sale of Ducati – speculation that Domenicali was quick to play down. Cars may have reached this moment first, but if the boss of Ducati is saying the quiet part out loud, the motorcycle industry is almost certainly having the same conversation behind closed doors.

Find the latest motorcycle news on Visordown