September 9, 2005 - It's been a while since my last blog post -- way too much going on with the rest of the site!  But this really isn't a blog in the classic sense; just a place to relay some interesting information that isn't easy to categorize.

This time it's China.  In case you haven't noticed, the Chinese motorcycle industry is poised to basically take over the world.  Sure, there will be a shakeout -- or two -- along the way, because there are way, way too many motorcycle and scooter manufacturers in China to be absorbed into the global economy.

But this interesting tidbit came our way, via Research and Markets, who has announced a new economic study now available for purchase, entitled "Motorcycles in China".

The study claims that the motorcycle manufacturing industry in China is undergoing rapid change, with 2003 a watershed year that marked the beginning of an upheaval in the industry.  Production is growing and so are export markets.

Get this: in 2003, Chinese motorcycle manufacturers produced 14 million motorcycles, which is 48 percent of global output.  Their products are exported to some 200 countries, many of them in the developing regions of Southeast Asia, South Asia and Africa, and developed countries in the Middle East.

And sales to the highly lucrative U.S. and European markets are increasing.  Exports have increased from from more than 3.4 million units, valued at $650 million in 2002 to almost 9 million motorcycles, valued at $1.45 billion in 2004.  This is a phenomenal increase of 123 percent.  The report states that "this is astounding growth even for an industry that has shown consistent strength: China has dominated the world's production of motorcycles since 1994".

Coincidentally, my registration form arrived today for the 2006 Dealer Expo in Indianapolis.  This is the showcase for all new motorcycle products and accessories for the new year, and we'll be reporting live again at that annual event.  I mentioned in my report from the 2005 show that the Chinese were out in force, and I noticed that this year there will be some special events at the Chinese pavilion at the show.  I'll follow up on this, but my previous experience with the Chinese manufacturers has been that their marketing skills have a long way to go to catch up to the West's ability to hype their products. 

While we're at it, some statistics on the Malaysian motorcycle industry have also been released. 

Malaysia has a national economic plan to become a hub for the production and assembly of motorcycles.  Production rose 34 percent to 472,726 units in 2004 from 352,933 units in 2003, according to International Trade and Industry Deputy Minister Datuk Ahmad Husni Hanadzlah.

There are several free trade zone agreements forming in Asia with Australia and several other countries.  It is expected that most of the countries in western Asia will belong to a free trade zone by 2012.

Malaysia is urging local companies to enhance their capacities and develop appropriate business strategies while they continue to compete in the world market.  Ahmad Husni said that "in order to be more competitive, local motorcycle manufacturers and distributors should look for overseas partners who were willing to transfer their technology so that such strategic partnerships could steer the local motorcycle industry".

He also stated that investment in research and development should be expanded so that each product manufactured would be in accordance with international quality and standards. (Source: Malaysian National News Agency)