Haitong: High demand for high-displacement motorcycles in the export market, market share concentrating towards domestic independent brands.

date
22/12/2024
avatar
GMT Eight
Haitong released a research report stating that with the high growth in recreational demand, the potential of the medium to large displacement motorcycle market focusing on sports, leisure, and entertainment is prominent, with increasing penetration and strong export of large displacement motorcycles. European and American countries are the main markets for large displacement motorcycles, with higher average prices; in the first half of 2024, China's motorcycle exports to Latin America saw a significant increase. Currently, China's export share of large displacement motorcycles is concentrated among top brands, and it is recommended to pay attention to relevant investment opportunities. Haitong's main points are as follows: High growth in recreational demand, increasing penetration of large displacement motorcycles. According to data from the China Motorcycle Industry Association, in 2023, China's motorcycle sales reached 19.42 million units, with fuel vehicle sales at 14.17 million units, a year-on-year increase of 3%. Sales of two-wheeled motorcycles over 250ml decreased slightly to 525,400 units, but are expected to return to growth in 2024, with sales of 573,000 units in Q1-3, a 40% increase year-on-year. In the first half of 2024, sales of two-wheeled motorcycles over 250ml accounted for 4.51% of total fuel two-wheeled motorcycles, an increase of 0.84% from the first half of 2023, highlighting the potential of the medium to large displacement motorcycle market focusing on sports, leisure, and entertainment. Significant increase in exports to Latin America, higher average prices in Europe. According to data from the China Motorcycle Industry Association's WeChat public account, in the first half of 2024, China's motorcycle exports reached 6.63 million units, a 23.60% year-on-year increase, with exports to Latin America reaching 2.547 million units, a 40.76% increase year-on-year, contributing significantly to the growth. Exports to Asia reached 1.7396 million units, a 19.56% increase year-on-year. The average export prices to Latin America and Asia were $566/$580 per unit, respectively, with higher average prices in Europe. In the first half of 2024, the average export price was $1,165 per unit, with a 24.98% year-on-year increase. In terms of regions, China, India, and Southeast Asia are the main consumer regions for motorcycles, accounting for nearly 78% of total sales. In terms of regional structure, Asia is the main consumer market for motorcycles, mainly used for commuting. According to Statista data, in 2022, China, India, and Southeast Asia accounted for 31%, 25%, and 21% of global motorcycle sales, respectively, and 18%, 20%, and 20% of global motorcycle sales revenue, respectively. North America and Japan have lower total demand, mainly focusing on large displacement motorcycles. In terms of penetration rate, the household penetration rate of motorcycles in Southeast Asia reaches 75%, ranking first and significantly higher than the global average of 29%. In terms of average sales price, sales prices are higher in Oceania and Europe in 2022, averaging over $10,000 per unit, while the average in the Americas is $5,290 per unit, with the average in the United States being $13,744 per unit. Asia/Africa have lower average prices, at $2,030/$2,110 per unit, lower than the global average of $2,540 per unit. European and American countries are the main markets for large displacement motorcycles, with strong dominance by Japanese and European companies. In terms of global market composition, sales prices are higher in European and American countries, with a focus on large displacement motorcycles. The average prices in the United States and Western European countries are generally between $12,000 and $14,000 per unit, while Southern European countries have average prices between $7,500 and $10,000 per unit. The Turkish market has seen rapid growth in recent years, but has a lower displacement structure, with mainly 250ml and below models, and an average price of $3,436 per unit. In terms of brand competition, as of 2022, Honda motorcycles have the highest market share globally, accounting for 29.5% of the global motorcycle market. Yamaha comes next with a market share of 11.6%. TVS, Hero MotoCorp, and Harley-Davidson rank third to fifth, with market shares of 3.9%, 3.8%, and 2.6%, respectively. Large displacement motorcycle market share is concentrated among top brands. According to data from the China Motorcycle Industry Association, in the first three quarters of 2024, a total of 249,000 units of motorcycles over 250ml were exported, a 68% year-on-year increase, with Zhejiang CFMOTO Power (20%), Zhejiang Qianjiang Motorcycle (18%), and Loncin Motor (15%) accounting for over half of the market share. On the domestic market side, Zhejiang CFMOTO Power (21%), Zhejiang Qianjiang Motorcycle (22%), and Loncin Motor (14%) show stronger dominance. Risk warning: significant fluctuations in raw material costs, new vehicle development and launch progress below expectations, new vehicle sales performance below expectations.

Contact: contact@gmteight.com