Global Sources Report Indicates mainland China Motorcycle Manufacturers Are Poised For Industry Shakeout

Consolidation To Help Lift Product Quality - Industry Growing More Than 30
                             Percent Annually

HONG KONG, August 3 /Xinhua-PRNewswire-FirstCall/ -- Global Sources Ltd. today released its Market Intelligence Report - Motorcycles: Supplier Capability in China which indicates that the rising cost of raw materials and price wars sparked by illegal manufacturers flooding the market with low-quality products, are factors prompting consolidation within the industry.

The report profiles 73 manufacturers in mainland China and examines issues such as pricing, production capacity, product directions and industry trends.

Macy Espaldon, editor of Asian Sources Hardwares magazine, said: "China's top 10 motorcycle manufacturers now account for more than 55 percent of market share. Their average annual growth rate is 30.5 percent, compared with 17 percent for the industry as a whole. Some manufacturers expect that at least half of all 21 motorcycle makers in Wuxi could drop out of the industry before consolidation is complete.

"This is characterized not only by consolidation of manufacturers in China, but also consolidation of Japan companies with manufacturers located in China. Both Honda and Suzuki have established a total of five motorcycle- manufacturing joint ventures in China's various motorcycle production hubs."

Additional findings in the 124-page Market Intelligence Report indicate that the increased Japan presence is raising the quality of motorcycles and motorcycle parts, particularly engines.

"This push for improved quality is coupled with a heightened emphasis on research and development that is expected to result in new and innovative engine releases," Espaldon said.

The Motorcycles: Supplier Capability in China report is the latest title in the Global Sources Market Intelligence Report series. Global Sources produces these reports from on-site factory visits and interviews, and extensive questionnaires. The reports assist buyers in making informed purchasing decisions and are part of Global Sources' sourcing and product information services, which includes trade magazines, online marketing and trade shows.

The Motorcycles: Supplier Capability in China Market Intelligence report is available for US$395 and can be ordered online at http://www.globalsources.com/astj/mcymir .

About Global Sources

Global Sources is a leading business-to-business (B2B) media company that facilitates global trade, with a particular focus on the China market, by providing information to international buyers and integrated marketing services to suppliers.

We deliver content to our communities through our leading network of nine vertical marketplaces and 13 geographic portals, and through magazines, CD- ROMs and private catalogs, as well as China Sourcing Fairs and technical events. Our flagship marketplace, Global Sources Online (www.globalsources.com), hosts more marketing and sourcing activity than any other global merchandise trade marketplace.

We serve a growing, independently certified community of more than 413,000 active buyers in over 230 countries and territories. These buyers generate more than 4 million inquiries annually for over 130,000 suppliers through Global Sources Online alone. We offer extensive creative services and export consultation through 150 client service officers in Greater China and other leading supply markets, and through our 700 sales representatives who make approximately 40,000 supplier visits monthly. In mainland China, we have 22 years on-the-ground presence, supported by over 1,000 team members in 44 locations throughout the country.

Global Sources' solutions are based on 33 years as a trade magazine publisher serving the global trade community, 13 years as a trade management software developer, 12 years as manager of trade shows in Asia, and eight years as an online marketplace operator.