Motorcycles have been banned or restricted in more than 160 mainland cities as Beijing pushes car ownership and blames the two-wheeled vehicles for everything, from drive-by robberies and pollution to traffic accidents.
That is bad news for people like Gong Bin, the president of motorcycle maker China Jialing Industrial, whose sales have already been hit by an export slump and which is now competing against cheap locally made cars.
Motorcycles, once the prized possession of mainlanders wealthy enough to trade in their bicycles, are now out of favour as the government subsidises car ownership across the nation. Industry players such as Jialing are concerned Beijing's one-sided support for cars is hurting an industry that still provides mobility for millions of rural poor.
The consumption tax on motorcycles is 3 per cent, against 1 per cent for some small cars. The tax on small cars with a one-litre engine or smaller has been cut from 3 per cent as the central government encourages people to buy low-emission vehicles. Cars also enjoy an export tax rebate of 17 per cent, compared with 15 per cent for motorcycles.
'The government should reduce consumption taxes on motorcycle' to boost the industry, Gong said.
At least 168 mainland cities, including Tianjin and the capitals of 25 provinces, have banned or restricted the use of motorcycles since the end of 2006. Shenzhen followed suit recently by announcing a prohibition on battery-powered bicycles on the city's roads by the end of next year. Official reasons for the ban include easing traffic jams and minimising accidents and drive-by robberies.