Firing on all cylinders

For Yin Mingshan, president and founder of Chongqing Lifan Group, motorcycles and automobiles are the two legs of his undertaking, none can be omitted.

"Some of world's leading auto conglomerates began from the two-wheel business, such as Japanese Honda, German BMW and Korean Kia," says Yin. "Once they had a stable foothold in the motorcycle industry, they turned to four-wheelers."

China's large automaker Geely also revved up with the motorcycle business, "but it is pity they dropped motorcycles when they began automobiles", says Yin.

Although Lifan has driven around 3,000 motorcycle producers and parts suppliers in Chongqing to expand their business into the automobile segment, Yin believes that "China's motorcycle industry still has room to develop."

He thinks China's motorcycle industry will maintain its upswing at least for the next 20 years.

Firstly, although the demand of motorcycles and automobiles in China is approaching its peak, there are still many developing countries where motorcycles can be marketed.

"So China's motorcycle producers should go outside our homeland to find more business opportunities in developing countries," says Yin.

Accordingly, Lifan group has set up manufacturing bases in Vietnam, Thailand, Turkey, Egypt and Russia. Its motorcycles go to more than 100 countries, including Japan and Europe.

Last year, motorcycle exports contributed $1 billion to Chongqing municipality.

Secondly, the product line-up of motorcycles in China is still not integrated.

"Few enterprises produce motorcycles equipped with engines with a capacity lower than 150 ml and higher than 250 ml. Lifan is the only one providing 400-ml engine equipped motorcycles in the nation, and the 600-ml engine motorcycles are produced only by Lifan and our local rival China Jialing Group," says Yin.

"However, our foreign competitors can even provide 1,000-ml motorcycles," he says. "The motorcycles with big capacity engines that use clean energy is still a niche market."

He also says that Lifan's motorcycle line-up will be expanded from 20-ml to 1,000-ml models.

Thirdly, Yin takes skyrocketing oil prices as a business opportunity for the development of motorcycles.

"I can still remember when I was in middle school, around 1956, a barrel of oil was just $1. However, after it broke the $100 barrier, some people went back to riding their old motorcycles, especially in western countries," says Yin.

He recalls when he visited Paris five years ago, "four-wheel autos crowded in the streets". Whereas last year, "more motorcycles were appearing on the roads".

Yin suggests that the "government should encourage the purchasing of automobiles, but limit the driving of them".

As chairman of the China Chamber of Commerce for Motorcycles, Yin has always committed to encouraging the governments in big cities to release the restrictions against driving motorcycles in downtown areas.

Lastly, in China motorcycles still have room to move in rural regions.

"There are till 800 million rural residents in China whose living standards are increasing. For a traditional Chinese farmer, when he becomes rich, he will build a house, buy a television set and then a motorcycle," says Yin."Therefore, motorcycles are still in great need in China, especially in the large rural regions."

(China Daily 05/19/2008 page12)