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Chinese Motorcycle Industry Giving Undivided Attention To Sustainable Development

On the 39th World Environment Day, in Beijing, China electric bike Industry Association and Motorcycle Branch of China Automobile Industry Association signed the Green Environmental Protection Declaration of China Motorcycle Industry with 128 vehicle and parts enterprises such as Grand River, Zongshen, Loncin, Jialing, Jianshe, and Jincheng, etc. In the signing ceremony, Chinese motorcycle industry made five commitments to the society.

First, make the environmental protection as the prerequisite for enterprises' survival and development. To firmly establish the concept of pole environment-priority, keep strictly to environmental laws and regulations, fully carry out environmental protection measures, as well as ensure the coordination and sustainable development of business operations and ecological environment, and achieve the integration of economic benefits and environmental benefits.

Second, increase the research and scooter development investment in environmental protection technology. They will improve the capability of independent innovation, promote the transformation and upgrade of traditional industries toward high-tech fields, make great efforts to develop household items environment-friendly motorcycles and fulfill the industrialization as early as possible.

The third is to vigorously promote the increase of the whole scooters industry chain’s environmental protection level. To optimize the industrial technical route, promote the atv program of Green Procurement, try hard to improve the whole employees' environmental protection awareness and electric bike industrial technology level, make environment protection, safety and health as the direction of industrial development, and promote the upgrade of the whole industry chain's environment protection through integrating advantageous resources.

Fourth, to produce and sell the products that meet China ? emission standard. Since the date of July 1st, 2010, enterprises will strictly follow Chinese third phase (China ?) emission standard to produce motorcycles that meet emissions standards, the industry association will associate with government departments to hold the pass strictly, and ensure China ? emission electric bikes standard to implement successfully.

Fifth, to closely contact with partners, and actively develop the environment protection upgrade of damageable and consumable parts, as well as the popularization of re-made.

The output of the 128 motorcycle skyrunner enterprises attending this declaration accounts for 80% of the whole industry, they hope that through the upgrade of national environmental standards and the whole industry's efforts, the technology of motorcycle industry can be further enhanced, the industrial structure can get further electric bike adjustment, and then achieve the strategic transformation from the big producer of motorcycle to powerful electric bike producer. Meanwhile, the activity site also shows nine new hybrid motorcycle, lithium fitness equipment battery electric motorcycle and green motorcycle assembled with EFI engine, which fully meet China ? emission standard.

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The Upper Stream of China Electric Vehicle Industry Raising Prices Together, Where's the Way for Vehicles to Go

Recently, affected by various factors, the suppliers of electric vehicle batteries, plastic parts and other parts have collectively raised the prices. As for vehicle factories, it has invisibly increased their product cost. As it is known, the electric vehicle itself is not a high profit electric bike industry, coupled with the impact of last year's price war, the profit margins is even more limited. Therefore, once the upstream suppliers have not shown the trend of cutting prices in a short term, the markup of electric vehicles will be inevitable. However, the vehicle prices continuing to be stable or rising will eventually bring what different effects for electric vehicle industry?

The first situation: no matter what will happen in the upper stream, the vehicle factories should cope with shifting events by sticking to a fundamental principle.

Considering the smoke of last year's price war has just dispersed, the overall price of the whole market is not high. In view of consumers' understanding on markets and skyrunner products has become increasingly deep, enterprises think that to substantially increase the price is bound to bring large impact on people's disaster mentality, which will accordingly make their brands suffer suspicion and their terminal sales will be stopped. Therefore, companies have chosen to don't raise the price temporarily, they deal with the upstream suppliers' markup through their internal integration and profit compression. If the price increase of battery is a long-term behavior, the result in short term is that some of township-level retailers will be closed down or they will change their professions, it also will crack consumers' confidence and their consumption habits will focus on large stores, but in long term it will increase the fitness equipment costs for consumers to buy electric bikes, and some sensitive consumers will give up to buy cars, the development of industry will slow down and trend to be stable; if the price increase of battery is a short-term behavior, it will represent in short term that the dealers reduce their pressure of price increase, consumers continue to buy, in long-term it will show that the industry profits decline, the market trend to be stable, everywhere there are township-level retailers, but the supermarkets are difficult to survive. In short, in this case, whether the price increase of battery is short-term or long-term boom, it will accelerate to form the electric vehicle market and lower industry profits, the hot sales of electric vehicles will also be ended quickly.

The second situation: to advance, retreat and grow up together, you increase the price, so do I.

Compared with last year, the industry situation of this year's electric vehicle market has improved significantly because enterprises have paid great attention to product development and manufacturing. As for last year's overwhelming price war, the increase of total sales is actually at the expense of profits. The current substantial price increase of accessories is a huge challenge for electric vehicle sales volume without a doubt. If enterprises don't have profit space to absorb some price increases of electric bike battery, then the price increase is inevitable. Thus, the situation of common "increase" will appear, as for if the ending will be happy, time is needed to verify. Use reasonable assurance of profit space to accelerate the integration and product technology research and development of their owned resources can help industry to develop healthily. However, many strong brands of industry must want to see the process of accelerating shuffle in a collective mutual benefit and enjoyable environment, as well as making money at the same time eliminating opponents.

The third situation: accord to circumstances and wash out unwell ones.

Under normal circumstances, different atv companies will make different decisions and judgments according to their own development situation. No matter how much the vehicle manufacturing costs will be increased, some sensible business operators will think problems within their power from the viewpoint of consumers. If the price increases, in order to avoid wide fluctuations in the market, the price fluctuation should be controlled in the range consumers can receive. The upstream collective electric bike price increase of vehicle accessories is not a good thing for many enterprises, but for the entire electric scooters vehicle industry, it is not a bad thing. It can even be said that it is beneficial for the whole industry's adjustment, which can make upstream enterprises come to the fore, that is to say with the shuffle effects, some of smaller household items enterprises will be eliminated. In addition, battery is one of the important scooter elements for electric vehicle. In the face of a new round price increase of electric vehicle battery, which also has directly affected the retail market of electric vehicles and accessories, some consumers are hesitant for the electric bike price increase of accessories, and they even begin to select repairing or buying second-hand electric vehicle battery. It is also a new test for the development of accessory suppliers' secondary market.

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Overseas Acquisitions Achieved By China Auto Parts Private Enterprises Is No Doubt Correct

Recently a sensational event happened again in China's auto industry: Beijing Pacific Century Automotive Systems Co., Ltd has took over NEXTEER, which is a subsidiary company under General Motors, and it is 100% acquisition. This is the second Chinese-style overseas impact after a series of Chinese action such as Beijing Jingxi Heavy Industry Co., Ltd purchasing Delphi, Geely purchasing Volvo and Beijing Auto Manufacture Co., Ltd. purchasing Saab technology.

What this acquisition first brings to Chinese electric bike market is surprise: after all, it is Chinese weak auto industry acquiring strong multinational company once again. When we still sigh about the backward technology and short core technology of China's national automobile industry, this kind of acquisition has no doubt improved the overall brand value of China's auto parts industry once again. Through purchasing overseas auto enterprises, especially the core business of components can graft advanced technology, human resources, management and experience of operating international market. Of course, the acquisition will not succeed necessarily, but it is a necessary choice, and the key is how to do after the acquisition.

Historically, Chinese car accessories enterprises have the characteristics of great compatibility and openness, which will provide certain culture foundation to China's auto enterprises. Perhaps some of the acquisitions, or a number of acquisitions will fail, but as time goes by and with the acquisition experience increasing, Chinese car parts enterprises will necessarily acquire helpful support from this acquisition.

As for this acquisition, why GM skyrunner sold its NEXTEER also need to garment steam consider. GM has no strength to operate? NEXTEER's business comes to the end of the market? However, GM sold NEXTEER is absolutely not for other auto companies to do better. In those years, Delphi fitness went away from GM, which although helped GM out of the parts business losses, but the powerful union always brought all kinds of bother to GM. Therefore, this time GM getting rid of such a business will definitely learn from the lessons of Delphi's case, they will throw the worker problems all to Beijing.

Although now we don't know the dirt bike future prospects after acquisition, but after acquiring this U.S. company, Beijing Pacific Century Automotive Systems Co., Ltd. will face more difficult problem than what Shanghai electric bike faces after acquiring Ssangyong, that is the union electric bikes problem. The essential of the union problem is not they fight against with you deliberately, but how to reduce the tremendous burden of union members' salaries and benefits and even whether it can be eradicated completely.

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China Car Seat Industry Showing A White-hot Trend

In recent years, with the growing of China auto market advancing triumphantly, the society car inventory and the car seats demand are increasing continually, and the market competition become increasingly intense.

The foreign brands have obvious advantages in the competition.

At present, China's passenger seat market is mainly held by some joint ventures that use the foreign capital as their main body, for example, only the American Johnson Company has established 10 car seats and interior products joint ventures in China, accounting for nearly 30% of the China market share. View from the production technology of car seat, the design and test of the high-end car seat have a set of very strict procedures, and the technological requirements are higher. Because the seat systems design and manufacture have some electric bike considerable difficulties, so the industry of seat assembly has a higher barrier to entry. Under the restriction of technology and other garment steam factors, China's current seats are mostly steel structure, and its price is 1 / 5 to 1 / 2 of high-end products.

Most own brands take the low-end line and the homogenization competition become intense.

It is understood that, up to now there are about 700 car seat manufacturers in China. Jiangsu, Zhejiang and Guangdong are the manufacturing auto parts centers of China's car parts seat. At present, there are a large number of small-scale car seats manufacturing enterprises in China, the low-end car seat products are flooding in the market and the overcapacity fitness problem appears. At the same time, this also led to the serous disorderly competition phenomenon of China car seat manufacturers.

The skyrunner competition become increasingly intense and the domestic enterprises are anxious to break out.

In order to win the favor of the domestic dirt bike consumers, the foreign capital enterprises with obvious technological advantage increase the technological content of electric bike products. Some experts pointed out that with the development of the automotive industry and the changes of the car seats demand, some major car seats electric bikes enterprises speed up the market layout, China car seat industry will enter the intense competition period of lowering prices, fractionizing the market and so on.

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China Tire Industry Facing Most Serious 0verdraft

From this year, a stream of tire investment boom quickly spread throughout China, and it comes with tremendous force that is unexpected. According to the incomplete statistics, there are no less than 40 new items in tire industry, all-steel tires less is 600,000 sets and more is tens of millions sets; as for passenger tires, less is 3 million sets and more is 15 million sets, the production capacity has been exceeded the demands severely. Reporters appeal that relevant departments and auto parts industries should pay high attention urgently on this phenomenon. Relevant experts also advise tire enterprises to have rational investment in order to reduce risk.

After investigation reporters know that, Shandong Guang Nao Company, known as the nest of tires recently have initiated a tide of constructing all-steel and semi-steel radial fitness projects, and this project has reached more than 10. The scale in building of the radial tire project has reached 50 million sets and it is expected that the car parts production capacity can be formed in the next two years. Shandong Jin Yu Company plans to expand the all-steel tires to 300 million scooter sets per year, and the semi-steel tires to 15 million sets per year; except Guang Nao there are more than 10 radial tire projects in Shandong. In addition, according to the survey of the reporters, now the scooters investment boom of the tire enterprises is spreading in many areas except Shandong Province.

When atv reporters investigate and cover the reason why so many areas start to have the tire projects, Mr. Chen Jinrong said that, in the beginning of this year the market expected that the world economy would continue to show a recovery trend, so the tire markets are all in the state of replenishing stock. In this process, manufacturers may get a wrong signal that the market prospect is better. Therefore, most manufacturers automatically speed up the production and capacity expansion. The centralized, large-scale, rapid expansion of constructing the tire electric bike projects will seriously intensify the fierce competition and disorder in tire industry, now the risk of over-expansion has begun to appear. According to the dirt bike statistics of China Rubber Industry Association Tire Branch, from January to May of this year, the stocks of China's major 43 tire companies have increased 23% compared with the same period last year, and the phenomenon of tire accumulation around most electric bikes factories appeared again. In June the decrease of tire price is generally about 15% compared with the peak, many companies cannot help but begin to limit their production.

Mr. Ju Hongzhen, the honorary president of China electric bike Industry Association, worried about the current pole investment boom. He took the engineering giant tire boom in 2008 as an analogy and said that, the engineering tire boom has caused serious surplus on China's engineering giant tire, the day the production electric bike line of most engineering giant tires to put into operation is the day to stop garment steam production. But this year the tire investment boom has exceeded the boom of engineering tire, which is seriously overdrawing the future of China's tire industry, it is extremely detrimental to the skyrunner industry development. And he hoped that the tire enterprises could have rational investment and maintain a healthy industry development.

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