China Taxes Encourage Small Motorcycles

by Paul Crowe - "The Kneeslider" on 3/31/2006

in China, Motorcycle Business

Just about a week ago, Harley Davidson announced their first dealer will open in China next month. What is China doing to encourage the motorcycle business? According to Gaijin Biker, the Chinese have cut taxes on motorcycles in the 250cc and smaller category from 10% to 3%. All Harley has to do now is fill their Chinese dealership with 250cc bikes and they should sell like crazy. Ah, ... wait a minute ...

Riding Sun - China Pushes Small Bikes

The Kneeslider: Harley Davidson Names China Dealer

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{ 2 comments }

Prester John March 31, 2006 at 4:48 pm

Harley Davidson is a manufacturer of “premium heavyweight motorcycles”. Because of Chinese laws restricting motorcycles, HDI is uniquely positioned to take advantage of the new wealth creation in China. The dealership will be full of FLHs with TLE sidecars – registered as automobiles in China.

So Honda sells 3,000,000 motor bikes and scooters in China and nets $10 on each one, for a profit of $30 million. Harley sells 1,000 hacks in China and nets $5,000 on each one, for a profit of $5 million. Market share, smarket share. :)

Tom

aaron April 1, 2006 at 3:17 pm

kinda like the 80′s in the USA, only the chinese aren’t taxing imports differently to support a failing domestic company that’s out of touch with the market… wait, it’s not really that similar after all.

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