Monday, August 31, 2009

How the Chinese Pit bike Manufactures desimated the low end Market slashing Japanese manufacturer revenue?

The Pit bike crazy has had a major impact on the motor bike market in the last 5-6 years with the Big 4 Japanese manufactures feeling the pitch the most. Gone are the high prices of models like the Yamaha pee wee 50, Honda 50, Kawasaki 70 in with the Chinese equivalent. It really is a buyers market now that raw materials are cheaper to import and the Chinese government offer favored tax breaks to start up factories exporting goods overseas.

Consumers just want a fair deal and with Chinese manufactures now importing engineers from USA, Japanese and Europe the technology is now obtainable. With trade negations sealed raw Metals like iron ore imported from countries like Australia enable the quality to lift substantially have allow small un recognized Chinese factories enter the market and compete in the international market. Such Brands like Apollo & Xmotos lead the charge with in China exporting 50-100,000 units per year decimation the low ended market but on the other hand giving money conscious consumers value for money.

These leading Chinese manufactures are well backed financially and have the blessing of the Chinese government in incentives to encourage export and job creation as china becomes even bigger. With such infrastructure and backing they can afford experienced contract engineers from Japan and USA. The technology and machinery is replicated or imported from overseas into China so quality is stable. The major car manufactures of the world have been in China for over 30 years and now motorcycles are moving the small direction over the last 5-6 years.

The foot hole for Chinese Pit bikes in global market will always remain just the quality will get better and the price will increase over time. China still has not caught the Japanese in the 250cc-450cc displacement engines but already Motard Dirt bikes are rivaling Japanese motard bikes in the lower end again due to imported engineers and machinery. Keep a close eye on this market its wide open and Japanese manufactures are becoming very cautious.

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