Motorcycles in China, a new Freedonia industry study, projects the market for motorcycles in China will increase at an annual rate of 13.9 percent, reaching 44.4 million units by 2011. The study also forecasts sales of electric engine motorcycles to outpace gas motorcycles and become the more dominant motorcycle segment in China in the next three years.
Nearly all motorcycles purchased in China are used for daily transportation purposes. According to the new study, demand for cost-effective vehicles in both urban and rural areas will fuel the trend. However, although a relatively small segment, demand for recreational and sport motorcycles will see fast growth going forward, driven by rising personal income levels and greater popularity of motorcycle activities among young people in China.
Freedonia says urban motorcycle bans and other restrictions enforced by local governments will ensure that the gas motorcycle market will remain focused on rural areas going forward. Motorcycles with engine displacements between 50cc and 249cc will continue to dominate demand through 2011, benefiting from their suitability for use in a wide range of rural applications. Smaller models will suffer from competition from electric motorcycles, while market gains for larger machines are expected to be modest due primarily to declining sales in the military and police segments and a mediocre outlook in the transportation segment. Nevertheless, demand for larger motorcycles will see robust growth in the recreation and sport markets, although these two markets will remain relatively small in the forecast period.
The Motorcycles in China study is available for $5,100. It presents historical demand data for 1996, 2001 and 2006 plus forecasts for 2011 and 2016 by product, market and region. It also considers market environment factors, evaluates market share and profiles 39 competitors.
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