Demand for motorcycles in China will grow 13.9 percent annually through 2011. Gains will be spurred by a meteoric rise in electric motorcycles, which are much less costly than gas types, are less regulated and are a popular upgrade from bicycles for urban consumers. The Northeast will see the fastest regional demand growth.

This study analyzes the 23.2 million unit motorcycle industry in China. It presents historical demand data for the years 1996, 2001 and 2006, and forecasts for 2011 and 2016 by model (e.g., cruisers, scooters, underbones, trikes and sidecars, mopeds, electric bicycles); engine displacement, battery type (lead-acid, lithium polymer, fuel cell); market (e.g., transportation, recreation); and region.

The study considers market environment factors, details industry structure, evaluates company market share and profiles 39 participating companies, including Grand River Group, Jianshe Industry Group and Suzuki.

TABLE OF CONTENTS


SECTION                                                                        PAGE

                INTRODUCTION                                                     ix

          I.    EXECUTIVE SUMMARY                                                 1

         II.    MARKET ENVIRONMENT                                                4
                General                                                           4
                Economic Overview                                                 6
                Demographic Overview                                              9
                    Population                                                    9
                    Urbanization                                                 12
                    Households                                                   12
                Currency Exchange Rates                                          14
                Consumer Income & Expenditure Trends                             16
                Light Vehicle Market Trends                                      18
                    Light Vehicle Supply & Demand                                19
                    Light Vehicle Park                                           20
                Public Vehicle Transportation Systems                            21
                Environmental & Regulatory Factors                               24
                    The Five-Year Plan                                           25
                    Motorcycle Emission Standards                                27
                    Gas Motorcycle Bans                                          30
                    Regulations for Electric Motorcycles                         32
                    Motorcycle Safety                                            33
                Counterfeiting                                                   34

        III.    OVERVIEW                                                         36
                Motorcycle Supply & Demand                                       36
                Motorcycle Park                                                  39
                Pricing Trends                                                   40
                    Gas Motorcycles                                              41
                    Electric Motorcycles                                         43
                Technology Trends                                                44
                    The Shift from 2-Stroke to 4-Stroke Engines                  47
                    Electric & Hybrid Engines                                    48
                Foreign Trade & International Issues                             52
                    Foreign Trade                                                53
                      Gas Motorcycles                                            53
                      Electric Motorcycles                                       56
                    World Outlook for Gas Motorcycles                            57

         IV.    GAS MOTORCYCLES                                                  61
                General                                                          61
                Gas Motorcycle Models                                            63
                    Cruisers                                                     65
                    Scooters                                                     65
                    Underbones                                                   67
                    Trikes & Sidecars                                            68
                Gas Motorcycle Engine Displacements                              70
                    Light Motorcycles                                            72
                    Medium Motorcycles                                           75
                    Heavy Motorcycles                                            79

          V.    ELECTRIC MOTORCYCLES                                             83
                General                                                          83
                Electric Motorcycle Models                                       85
                    Mopeds                                                       88
                    Electric Bicycles                                            92
                    Scooters & Others                                            96
                Electric Motorcycle Batteries                                    99
                    Lead-Acid                                                   101
                    Lithium Polymer                                             102
                    Fuel Cells                                                  103

         VI.    MARKETS                                                         105
                General                                                         105
                Transportation                                                  106
                    Gas Motorcycles                                             109
                    Electric Motorcycles                                        110
                Recreational & Sport                                            110
                    Gas Motorcycles                                             113
                    Electric Motorcycles                                        115
                Other                                                           116

        VII.    REGIONAL TRENDS                                                 120
                General                                                         120
                Regional Demographic & Economic Trends                          122
                    Population Patterns                                         123
                    Economic Outlook                                            124
                Regional Demand for Motorcycles                                 126
                    Central-North                                               130
                      Overview                                                  130
                      Motorcycle Demand                                         132
                    Northeast                                                   135
                      Overview                                                  135
                      Motorcycle Demand                                         137
                    Central-East                                                139
                      Overview                                                  139
                      Motorcycle Demand                                         141
                    Central-South                                               144
                      Overview                                                  144
                      Motorcycle Demand                                         145
                    Southwest                                                   147
                      Overview                                                  147
                      Motorcycle Demand                                         149
                    Northwest                                                   152
                      Overview                                                  152
                      Motorcycle Demand                                         153

       VIII.    INDUSTRY STRUCTURE                                              156
                General                                                         156
                Industry Composition                                            157
                Market Share                                                    160
                    Gas Motorcycles                                             160
                    Electric Motorcycles                                        163
                Product Development & Manufacturing                             167
                Marketing & Distribution                                        169
                Financial Issues & Requirements                                 172
                Cooperative Agreements                                          173
                Company Profiles                                                178
                    Beijing Xinri Electric Bicycle Company Limited,
                      see Jiangsu Xinri Electric Bicycle Company
                    Beijing Zhong Ke San Huan High Tech Company                 179
                    China Chongqing Shineray Motorcycle Company                 180
                    China Jialing Industrial Company Limited                    181
                    China Qingqi Group Company Limited                          182
                    Chongqing Lifan Industry Group Company Limited              184
                    Chongqing Loncin Industry Group Company Limited             185
                    Chongqing Yingang Science & Technology Group                186
                    Chongqing Yinxiang Motor Group Company Limited              187
                    Dachangjiang Group, see Grand River Group Company
                    Grand River Group Company Limited                           188
                    Guangzhou Benma Industrial Company Limited                  189
                    Guangzhou Dayang Motorcycle Company Limited                 190
                    Guangzhou Haojian Group Company Limited                     191
                    Guangzhou Motors Group Company Limited                      192
                    Guangzhou Panyu Huanan Motors Group Company                 193
                    Guangzhou Tianma Group Tianma Motorcycle Company            194
                    Henan Sendi Electric Bicycle Company Limited                195
                    Honda Motor Company Limited                                 196
                    Jiangsu Xinri Electric Bicycle Company Limited              198
                    Jiangsu Yadea Technical Development Company                 199
                    Jiangxi Hongdu Voyage Industry Group Changzhou
                      Hongdu E-bicycle Company Limited                          200
                    Jianshe Industry Group Limited                              201
                    Jinan Qingqi Electric Vehicle Company Limited,
                      see China Qingqi Group Company
                    Jinan Qingqi Motorcycle Company Limited, see
                      China Qingqi Group Company
                    Jincheng Corporation                                        202
                    Jinshan Development & Construction Company Limited          204
                    Kawai Motor Industry Guangzhou Limited, see
                      Luoyang Northern Enterprises Group Company
                    Luoyang Northern Enterprises Group Company Limited          205
                    Luyuan Electric Vehicle Company Limited                     207
                    Nanjing Daluge High-Tech Company Limited,
                      see Beijing Zhong Ke San Huan High Tech Company
                    Nanjing Jincheng Suzuki Motorcycle Company Limited,
                      see Jincheng and Suzuki Motor
                    Phoenix Company Limited, see Jinshan Development
                      & Construction Company
                    Qianjiang Group Company Limited                             208
                    Qingdao Aucma Company Limited                               209
                    Qunsheng Group Company Limited                              210
                    Shandong Incalcu Group Company Limited                      211
                    Shanghai Dishu Electric Bicycle Company Limited             212
                    Shanghai Forever Company Limited                            213
                    Shenzhen China Bicycle Company Holdings Limited             214
                    Suzhou Heping Industry Company Limited                      215
                    Suzuki Motor Corporation                                    216
                    Suzuki Motorcycle R&D Company Limited, see
                      Grand River Group Company and Suzuki Motor
                    Tianjin Fujida Group                                        218
                    Wuyang-Honda Motors Guangzhou Company Limited,
                      see Guangzhou Motors Group and Honda Motor
                    Yamaha Motor Company Limited                                219
                    Zengcheng Haili Motorcycle Company Limited                  221
                    Zhejiang Libahuang Industry and Trade Group                 222
                    Zongshen Industrial Group                                   223
                Other Companies Mentioned in Study                              224

                                 LIST OF TABLES
                                        
TABLE NUMBER                                                                   PAGE

                SECTION I -- EXECUTIVE SUMMARY
                Summary Table                                                     3

                SECTION II -- MARKET ENVIRONMENT
           1    Gross Domestic Product of China                                   8
           2    Population of China                                              11
           3    Households in China by Region                                    13
           4    Chinese Currency Exchange Rates, 1996-2006                       15
           5    Consumer Income & Expenditure Patterns in China                  18
           6    China Light Vehicle Statistics                                   20
           7    China Bus Statistics                                             23

                SECTION III -- OVERVIEW
           1    Motorcycle Supply & Demand in China                              39
           2    Motorcycle Pricing Patterns in China                             41
           3    Motorcycle Demand in China by Engine Type                        46
           4    Chinese Motorcycle Foreign Trade                                 53
           5    World Gas Motorcycle Demand                                      59

                SECTION IV -- GAS MOTORCYCLES
           1    Gas Motorcycle Demand in China                                   63
           2    Gas Motorcycle Demand in China by Model                          64
           3    Gas Motorcycle Demand in China by Displacement                   71
           4    Light Motorcycle Demand in China                                 74
           5    Medium Motorcycle Demand in China                                78
           6    Heavy Motorcycle Demand in China                                 82

                SECTION V -- ELECTRIC MOTORCYCLES
           1    Electric Motorcycle Demand in China                              85
           2    Electric Motorcycle Demand in China by Model                     87
           3    Electric Moped Demand in China                                   91
           4    Electric Bicycle Demand in China                                 95
           5    Electric Scooter & Other Demand in China                         98
           6    Electric Motorcycle Demand in China by Power Source             100

                SECTION VI -- MARKETS
           1    Motorcycle Demand in China by Market                            106
           2    Transportation Motorcycle Demand in China                       108
           3    Recreational & Sport Motorcycle Demand in China                 113
           4    Motorcycle Demand in Other Markets in China                     119

                SECTION VII -- REGIONAL TRENDS
           1    Population of China by Region                                   124
           2    Gross Domestic Product of China by Region                       126
           3    Motorcycle Demand in China by Region                            129
           4    Central-North Region of China: Motorcycle Demand                134
           5    Northeast Region of China: Motorcycle Demand                    139
           6    Central-East Region of China: Motorcycle Demand                 143
           7    Central-South Region of China: Motorcycle Demand                147
           8    Southwest Region of China: Motorcycle Demand                    151
           9    Northwest Region of China: Motorcycle Demand                    155

                SECTION VIII -- INDUSTRY STRUCTURE
           1    Revenue Data: Selected Motorcycle Companies, 2006               159
           2    Selected Cooperative Agreements                                 175

                                 LIST OF CHARTS
                                        
CHART NUMBER                                                                   PAGE

                SECTION II -- MARKET ENVIRONMENT
           1    Population of China by Age, 1996-2016                            11
           2    Chinese Currency Exchange Rate, 1996-2006                        16
           3    Light Vehicle Density Comparison, 2006                           21

                SECTION III -- OVERVIEW
           1    Motorcycle Demand in China by Engine Type, 1996-2016             46
           2    World Gas Motorcycle Demand by Region, 2006                      60

                SECTION IV -- GAS MOTORCYCLES
           1    Motorcycle Demand by Model in China, 2006                        64
           2    Gas Motorcycle Demand by Displacement in China, 2006             71
           3    Light Gas Motorcycle Demand in China, 2006                       75
           4    Medium Gas Motorcycle Demand in China, 2006                      78
           5    Heavy Gas Motorcycle Demand in China, 1996-2016                  82

                SECTION V -- ELECTRIC MOTORCYCLES
           1    Electric Motorcycle Demand by Model in China, 1996-2016          88
           2    Electric Moped Demand in China, 1996-2016                        91
           3    Electric Bicycle Demand in China, 1996-2016                      95
           4    Electric Scooter & Other Demand in China, 1996-2016              99
           5    Electric Motorcycle Demand in China by Power Source,
                    1996-2016                                                   101

                SECTION VII -- REGIONAL TRENDS
           1    Motorcycle Demand in China by Region, 2006                      130
           2    Central-North Region of China                                   132
           3    Northeast Region of China                                       137
           4    Central-East Region of China                                    141
           5    Central-South Region of China                                   145
           6    Southwest Region of China                                       149
           7    Northwest Region of China                                       153

                SECTION VIII -- INDUSTRY STRUCTURE
           1    Motorcycle Market Share by Company in China, 2006               160
           2    Gas Motorcycle Market Share by Company in China, 2006           161
           3    Electric Motorcycle Market by Company in China, 2006            164