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0 electric cargo tricycle industry situation

The process of the tricycle industry from an incremental market to a stock market is actually a process in which various problems and contradictions in the development of the tricycle industry continue to become prominent. In this process, the market capacity of tricycles is further saturated, the demand for product functions is increasing, and the technical requirements are becoming more and more stringent. Therefore, it has a great impact and promotion on the survival and development of the tricycle industry. In the face of the formal implementation of the “National IV” standard, all enterprises have made full preparations and countermeasures, determined to forge ahead in the technical level and marketing methods, and brought the overall situation of the industry to a new situation.

In 2020, China’s tricycle industry is under the dual influence of the continuous spread of the new crown epidemic worldwide and the turbulent world economic situation. Big obstacle. Fortunately, the domestic epidemic was quickly brought under control. In late March, under the impetus of the state, the industry began to resume work and production in an orderly manner. With the gradual recovery of the national economy, the tricycle industry was able to get out of the trough, and the production and sales volume rose steadily, and at the end of the year. Surpassed the same period last year and achieved a substantial increase.

  1. The domestic market has turned down first and then risen gorgeously

According to statistics from the China Motorcycle Chamber of Commerce, from January to November 2020, the cumulative production and sales of three-wheeled motorcycles were 2.0123,100 and 2.0122 million, an increase of 229,300 and 226,600 respectively over the same period in 2019, an increase of 12.86 respectively year-on-year. % And 12.69%; the cumulative production and sales of side tricycles were both 2,825, a sharp increase of 60.88% and 59.97% year-on-year; the cumulative production and sales of electric motorcycles were 576,200 and 574,600, up 57.53% and 58.37% respectively.

Comparison of the total production and sales of three-wheeled motorcycles from January to November 2020 and the same period in 2019

Although from the overall data, the production and sales of three-wheeled motorcycles have shown a substantial increase, this situation was unimaginable when the epidemic broke out in early 2020. Judging from the tricycle production and sales data, the domestic tricycle industry’s production and sales situation in the first quarter of 2020 can be described as miserable. This is because the market has been shut down due to the epidemic. This is true for all industries, and the sales of tricycles in the first quarter were only more than 350,000; from Beginning in the second quarter, with the gradual and orderly implementation of the resumption of production and work in China, the consumer demand in the tricycle market for nearly two months began to “retaliate”, prompting the production and sales of tricycles to stop falling and rebound, drawing a small positive line, and monthly sales volume Maintained at around 200,000 vehicles; in July of the third quarter, there was a short period of saturation after the rapid release of consumer demand for car purchases in the second quarter, resulting in the monthly sales volume of only 170,000 vehicles, but in August it rebounded to 21. About 10,000 units, following the peak season practice of the tricycle industry “Golden Nine Silver Ten”, in September it was close to 230,000 units; monthly sales in October and November of the fourth quarter remained at around 220,000 units.

The growth rate of side tricycles and electric motorcycle tricycles is even more alarming, which also reflects that the consumption habits of tricycle users in the year of the epidemic have gradually changed this year. The substantial growth of Bian Sanlun indicates that leisure and entertainment products are becoming more and more popular, while the substantial growth of electric motorcycle tricycles is affected by the epidemic and the “market stall economy”. Because of its simple operation and convenient use characteristics, it is more conducive to the establishment of street stalls. need. In addition, the epidemic has also led to the rapid growth of the express delivery industry, requiring more express delivery vehicles, and light and convenient electric motorcycle tricycles are favored by express companies.

  1. The export market is unexpected. Year-end answers are satisfactory

In 2020, with the global spread of the new crown epidemic, many countries began to “close the country” and “close the city”, which affected the export of tricycles to a certain extent, including the first quarter affected by the epidemic. Therefore, according to the above Judging from the half-year situation, the export performance may decline compared with 2019.

However, with the continuation of the Sino-US trade war, the country has gradually shifted its overseas economic and trade focus to other countries, and has increased its economic and trade exchanges with countries along the “Belt and Road”. Some export companies in the tricycle industry have also followed the pace of the country. The in-depth development of overseas markets such as Southeast Asia, Eastern Europe, Africa and South America, and the growth of overseas export performance at the end of the year, is really unexpected and gratifying.

According to statistics from the China Motorcycle Chamber of Commerce, from January to November 2020, 379 thousand tricycles were exported, a year-on-year increase of 15.59%; the export value of tricycles was US$306.6326 million, a year-on-year increase of 14.25%. From January to November, the export of ATVs was 234,700, a year-on-year increase of 46.64%; the export of ATVs was US$395,429,200, a year-on-year increase of 35.82%.

  1. Rising raw material prices push up the price of complete vehicles. Environmental inspections are increasing

In the second half of 2020, the prices of steel, tires, logistics, batteries, and aluminum have generally risen, pushing up the prices of vehicle accessories.

Since July 2020, the price of steel has continued to rise by more than 10%. As a major steel consumer, the price of tricycles will inevitably rise. Corresponding three-drive models increase from 300 to 700 yuan, caravans increase from 400 to 700 yuan, leisure three-wheelers increase from 200 to 500 yuan, microcars increase from 800 to 1,400 yuan, and low-speed cars increase from 1,000 to 1,000 yuan. 2000 dollars.

From July to October, rubber increased from RMB 10,680/ton to RMB 14,110/ton, an increase of 32%. On October 21, the price of rubber soared to 15,060 yuan/ton, the highest price in several years. Rubber prices continue to rise, driving up tire prices. At present, the price increase of most companies is about 4% to 7%, and some companies even reach 7% to 10%. In addition to the strict inspections of illegal modifications in many places and the impact of environmental protection policies, the costs of all frame factories and paint factories are increasing. Many coating companies are unable to absorb the pressure of rising costs on their own, and they have increased their prices.

Up to now, the prices of several core components of electric tricycles, such as motors, carriages, and tires, have all begun to rise. The production cost of the entire vehicle has risen between 110 yuan and 195 yuan. The pressure increased again.

With the advent of the heating period at the end of 2020, the government’s environmental protection inspections have gradually become stricter, and environmental inspection teams have been dispatched to industrial bases in Tianjin, Zhejiang, and other industrial bases to impose production restrictions and stop production measures on some companies, which has led to a decline in production capacity and an increase in costs. Raw material manufacturers also pass on the cost to downstream vehicle companies.

For this price increase, it is not so much a price increase, as it is a return to normal performance of the long-term price war competition in the tricycle industry. Nowadays, the standardized development of tricycles has become the mainstream trend of the industry. The reshuffle through “price increase” may remove low-end and outdated production capacity, providing a good market environment for manufacturers with truly excellent products.

  1. The general trend of the implementation of “National IV” fluke behavior cannot last long

Since the official implementation of the “National IV” emission standard for motorcycles on July 1, 2019, many tricycle companies have carried out the development and launch of EFI models sooner or later. Mainstream domestic companies have launched their own “National IV” models, such as Loncin, Zongshen, Dajiang, Wanhu and other companies. In terms of vigorously launching the market promotion of “National IV” products, these companies have also gone across the country. Forefront.

From the formal implementation of the “National IV” standard to the end of 2020, one and a half years have passed. However, there are very few companies that can strictly comply with the “National IV” standard. Business. The situation at the beginning of 2019 was a little better, but in 2020, due to the impact of the epidemic and the economic environment, the country has relaxed its regulatory efforts, so “National III” cars have gradually flooded the market again, but only Put on the coat of “National IV”.

Although short-term speculation can achieve certain economic benefits, as an industry standard formulated and implemented by the country, it will certainly not be just a dead letter. I believe that when the epidemic passes, the country will definitely strengthen strict supervision of the market, and short-sighted companies are under the general trend of the industry. , Is destined to not have a good ending.

From the perspective of environmental protection, the emission pollution of “National IV” vehicles is much smaller than that of “National III” vehicles. From an economic point of view, although the price of “National IV” cars is about 1,000 yuan higher than that of “National III” cars on average, due to the precise fuel injection and ignition control of the electronic injection system, the fuel economy of “National IV” cars is better than that of petrochemicals. The “National III” car of the instrument is higher, so in the long run, it is undoubtedly more cost-effective to buy and use the “National IV” car.

  1. Market competition returns to the product itself

If most of the companies that failed in the past were due to lack of production qualifications, strict inspections and rectifications in various places, and dealers who did not dare to cooperate, then many companies that went bankrupt in 2020 will already have production qualifications, or have the basis of 3C certification and catalog products.

From the recent batches of first-level qualification enterprises passed by the Ministry of Industry and Information Technology, it can be seen that more and more enterprises have obtained production qualifications, and the industry is developing in a more standardized direction. For companies, having qualifications is no longer a competitive advantage, but just a voucher for a new track. The industry has shifted from a qualification game to a game of technology, products, production capacity, marketing and other aspects. The core of competition has returned to products again. itself.

Tricycles are mainly oriented to the rural consumer market, but the capacity of these markets has long been saturated. With the upgrading of consumption, the diversification of the uses of tricycles drives product technological innovation. Due to the complexity of the tricycle usage scenarios, it determines that the tricycle has different requirements in terms of load, power, climbing, endurance, safety, comfort, and economy during freight or travel. These real demand points are technical. The breakthrough point is also the selling point of the product.

No matter how the industry shuffles or changes, technological innovation is always a solid force to promote the development of the brand. Only by gradually improving the unique comfort, load-carrying performance, power system, and safety advantages of tricycle products can it stand on the commanding heights of the market.

Faced with changes in the market environment, the industry has entered a more complex competitive situation. Tricycle companies can seek new markets based on their product advantages, create different market segments according to customer needs, and deploy multiple categories to meet different products corresponding to different regions , The diversified needs of consumers at different consumption levels, to seize more market share.

Only with the foundation of scale and multi-category development can tricycle companies cope with the uncertainty of the market environment and have follow-up development opportunities. Through the layout of major brands in 2020, it can also be seen that many brands have begun to optimize the product structure of all categories. In order to ensure product supply, they have vigorously expanded new factories and new bases to lay a solid foundation for products and production capacity.

Sixth, the stricter control of tricycles in various places affects the healthy development of the industry

In 2020, local governments have intensified their efforts to clean up and rectify tricycles. Tricycles with oversize and unlicensed tricycles are included in the rectification. In many cities, a “one size fits all” measure is adopted, regardless of whether you have a license or not. As long as they are on the road, they will be seized. This has had a significant impact on the normal production and sales of the tricycle industry, because the introduction and implementation of such local policies have stifled some potential users’ desire to buy.

After the domestic epidemic has been brought under control, with the orderly progress of resumption of production and work, the stall economy has gradually become popular, driving the recovery of the tricycle market, but it may be due to environmental protection or safety considerations. Shandong, Sichuan, and Chongqing Most provinces and cities across the country, including Guangxi, Guangxi, and Jiangxi, have introduced policies to clean up and rectify tricycles. Although such policies are usually of a short-term nature, some places tend to relax their control after a period of stringent inspections, but it is precisely because of this. The tightening and loosening of this kind of control force makes consumers look forward to the future, which affects the sales situation of tricycle markets in various regions.

In view of the actual status of China’s tricycle industry, it seems unrealistic for tricycles to receive relatively fair and normal treatment such as legal licensing and on the road in the short term. However, the existence of the tricycle industry is beneficial to people’s livelihood after all. Therefore, the development of the tricycle industry will inevitably fail. Curb.

  1. The industry is moving towards standardization

In 2020, the logic of “standardization” in the tricycle industry will remain unchanged, which will still drive the company’s continued upward, high-quality, and compliant development. From the perspective of enterprises, powerful enterprises frequently act with forward-looking layouts, intensively cultivate channels, and accelerate the development of new products; the market has stabilized, and policies have been introduced in many places to replace “bans” with “management”.

Affected by multiple factors such as the market and policies, in the first half of 2020, although the pressure on enterprises and distributors is relatively high, the industry is steadily moving towards a more healthy and standardized direction.

At the end of 2020, in the period of high incidence of brand clearance and retirement, dealers should pay more attention to and adjust the cooperation between themselves and manufacturers.

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Stevenford, the General Manager of ALA CYCLES, professional on the MTB,E scooters bike, cargo bikes for more than 15 years tll now.

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