China 2021. Q3 Sliding Demand Did Not Stopped the EVs Tsunami

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Chinese Motorcycles Market keeps fast growing in the 2021. Year to Date September figures report a dramatic market increase, with 15 million sales, up 15.3% vs the 2020, driven by electric manufacturers, with Yadea acquiring a stellar market share, but even with Niu advanced now as fourth brand in the country

Motorcycles Market Trend 2021

The motorcycles market is in great shape in China, while deeply involved in the electrification transition which is creating huge spaces for EVs specialists and narrow roads for combustion engines specialists.

Although in the last third quarter the Chinese economy growth was below expectations, reducing demands for consumer goods, the two market kept fueling the EVs segment growth, while the total market lost steam, following a roaring first half of the year.

In addition, the transition to the electrification is very fast and while government subsidies to producers are declining, the huge volumes achieved by segment leaders have already allowed strong economy of scale and the electric scooters are already competitive in terms of pricing and performance.

The market is rapidly changing after that the electric vehicles becomes more than 50% of total market last year. 

New brands are booming, with Yadea market leader not only in the EVs segment but in the entire market, after hitting a record over 5 million sales in the 2019. Xinri Sunra, Niu, Luyuan and other brands are fast growing, limited by short supply, while the traditional brands are giving up on domestic sales, concentrating their efforts on export.

Said this, looking at the market figures, in the first half 2021 total domestic market sales have been 9.8 million, up an impressive 32.4% compared with 2020 (when February sales dropped due to covid19) and 28.8% compared to the 2019.

As said, in the third quarter sales slipped down 7.6% vs the correspondent period last year. However, while EVs and imported premium manufacturers boomed up, traditional manufacturer still focused on combustion engines dropped heavily.

Year to Date September figures report a dramatic market increase, with 15 million sales, up 15.3% vs the 2020, driven by electric manufacturers, with Yadea acquiring a stellar market share, but even with Niu advanced now as fourth brand in the country, with only Haojue and Zonghshen resisting (2nd and 3rd) at the electric tsunami.

Yadea C1s
Yadea C1s

In 2020 the market is back the largest in the World

In the year on which the spread of covid 19 is transforming the human interaction, causing economic transformation, including trends within the motorcycles global industry, China, the country which was the home-base for the virus, is conquering back, after 4 years, the global leadership within the two wheeler industry.

The Chinese market lost the global leadership in the 2016, after the introduction of more severe rules for emission and use of two wheelers, with volume dropped down by millions units, while the Indian market was fast growing, taking the leadership.

This year, India is losing deeply, with a full year projection of 20% lost, while the Chinese market is one the most resilient and is projected to end the year at the level of 2019.

Following a first quarter 20% lost, mainly caused by February shut down in most of Chinese regions, the market recovered with Q2 sales up 3.0% and Q3 up 7.6%.

The positive trend was in place even in the Q4 and following the October +12.0%, In November domestic market surged 5.4% with 1.6 million sales. After the first 11 months of the year, sales have been 15.7 million, up 0.4%.

Data reported include all motorcycles, scooter, moped, three and four wheelers. Data do not include the e-bike, the kick scooter and the Chinese specific small motorized vehicles, called light scooter.