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SCMP Reporter

JAPANESE motorcycle makers are moving to dominate the China market, with both local production and exports, a market in which they forecast annual growth of up to 20 per cent, say officials and economists.

     Demand was likely to exceed three million in 1995, up from about 2.6 million this year, two million last year and 1.8 million in 1991, said a spokesman for Yamaha Motor Co.

     Economists said such a rapid increase was in line with the rise in disposable income.

     The average annual wage of urban Chinese was about US$1,000 and, when it reached $5,000, ordinary consumers would start to buy four-wheel vehicles, they said.

     Leading the pack is Honda Motor Co, which forecasts motorcycle output in China at 450,000 this year, up from 380,000 last and 224,000 in 1991, at six plants, including three joint ventures.

     A Honda spokesman said the company expected total sales of Chinese-and Japanese-made motorcycles of 680,000 this year, up from 610,000 last year and 352,000 in 1991.

     One of the joint ventures, Tianjin-Zundapp Motorcycle Co, owned 34 per cent by Honda and the rest by Tianjin, formed in April, plans to produce 20,000 motorcycles this year.

     Another venture, set up in January, is Jialing-Honda Motor Co, a 50-50 venture with China Jialing Machine Co.

    The spokesman said Honda would increase the number of authorised maintenance and repair stations for motorcycles to 100 this year from 81 now.

     Yamaha will boost motorcycle output in China to 600,000 this year from 360,000 last year and 180,000 in 1991.

  A spokesman said its models were produced at four firms, including Chongqing Jianshe-Yamaha Motor Co, a 50-50 venture with Jianshe Machine & Tool Factory, formed in November last year.

     Suzuki Motor Corp will increase exports of assembled motorcycles and kit parts to China to 450,000 in the year to March from 380,000 and 154,600 in the last two fiscal years. Of the total, a spokesman said, kit parts exports accounted for some 70 per cent.

     Suzuki formed Wangjian Suzuki Motorcycle Co, owned 50 per cent by Wangjiang Machine Building Plant, 35 per cent by Suzuki and 15 per cent by Nissho Iwai Corp, last month to produce 7,500 motorcycles in the first year and 50,000 in the third.

     Suzuki's vehicles are produced at three other Chinese firms with technical assistance from Suzuki.

     Kawasaki Heavy Industries plans to boost exports of motorcycle engines to China to 15,000 this year, up from 1,500 last year.

   A spokesman said last year's exports of engines fell from a planned 3,500 due to China's falling foreign currency reserves.

     China National Automobile Industry Import and Export Corp produces 250 cc motorcycles, using Kawasaki's 250 cc engines and its technological assistance.

     Economists said China was likely to limit further setting up of joint ventures to assemble motorcycles as the country already had enough and was likely to promote joint ventures to produce motorcycle components.



Japanese motorcycle manufacturers out to capture strong market