Chinese motorbikes cost much less and thus scare off competition from big brands, especially European ones: this is why this happens.
Nowadays, as we know, the Chinese market is able to offer motorcycle models (as well as cars) that cost much less than the European competition, but not only that. The difference with the queens of the market is therefore increasingly narrowing and this scares the giants of the sector. But why do certain motorbikes cost so little compared to those of the big brands? Let’s look at the details of the issue together.
As mentioned, the Chinese market is able to offer something that is currently not found in competitors’ houses, i.e. captivating performance and specifications at decidedly low cost prices. An expert, Luca De Meo, the CEO of Renault, spoke about the topic and reported that the much less cumbersome bureaucracy in China compared to Europe has a significant impact.
This means that companies in China they manage to get much more financing, speeding up motorcycle production and cars (even more so in the electric field) and considerably halving the time required to create new models. Here then, in more detailed terms, is the data that demonstrates how the different factors together can make a difference.
Motorcycles in China, the price becomes decidedly low compared to the offers of the big brands: the details
Luca De Meo underlined, in what was published on 19 March as a “Letter to Europe”, how much in Europe there is a need for a cut in bureaucracy and a different use of the budget that each company has available. In China, in fact, they were allocated between the 110 and 160 billion euros of investments and that makes all the difference in the world in terms of cost and time!
Even in times, certainly. For production, by increasing the budget and investment in resources, a model can be built even in a year and a half or two. Unlike Europe where 25% of the budget is spent just on studying the new regulations and where it takes up to 3-4-5 years to design and produce.
Thus, on average, Chinese cars and motorcycles come out on top compared to those of their competitors cost even 6/7 thousand euros less. European competition necessarily needs to get back on its feet. And do it immediately, perhaps pushing even further towards greater collaboration and greater investment in new technologies. There’s no more time to waste.
