Motorcycle Exports to Climb

China's motorcycle exports will increase to 500,000 units this year, said an auto industry official.

Exports will be targeted to Africa, South America and Southeast Asia, said Wednesday Du Fangci, an engineer of the Automobile Management Division of the State Administration of Machine-Building Industry.

China exported more than 300,000 motorcycles last year, accounting for 2.5 per cent of the country's total output and 10 per cent of the world total motorcycle trade volume.

More than 140 motorcycle models of 37 domestic producers have gained quality licences for exports, Du said.

To claim a bigger share of the overseas market, Chinese motorcycle producers are trying to develop newer models, enhance product performance and set up after-sales service networks for exports.

"Although China now makes the most motorcycles in the world, it exports few because it still lags behind other world motorcycle giants in terms of technology and services," Du said. "We must increase investment in the sector to expand our presence on the world market."

The country increased its annual output to 11.27 million units last year from 49,000 in 1980.

The Jialing Industry (Group) Corp in Southwest China Chongqing Municipality, the country's largest motorcycle producer, has made progress in new product development by co-operating with Japan's Honda Motor Corp.

Honda, the world largest Motorcycle producer, has three motorcycle joint ventures in China.

During the first quarter of this year, Jialing exported more than 20,000 motorcycles, said sources from the group. Its total exports this year are expected to increase to 100,000 from 46,000 units last year.

"We will export more motorcycles after China enters the World Trade Organization," Jialing predicted.

Motorcycle exports also benefit from the government's favourable export policies, Du said.

According to the Ministry of Foreign Trade and Economic Co-operation, domestic motorcycle producers have enjoyed export tax rebate of 17 per cent since July.

The Tenth Five-Year Plan (2001-2005) of the motorcycle sector projects that the exports will rise to 1 million units in 2005.



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