Chapter 1636 Motorcycle Minus, Electric Plus

Li Mingde stared blankly at Feng Yu. If the city issued such a ban, the sales of motorcycles would definitely be seriously affected.

Those second-hand motorcycles in the city will flood the rural market. This means that the two markets have shrunk at the same time.

Fortunately, Bingcheng Machinery did not expand the production of two-wheeled motorcycles two years ago, but increased the production of three-wheeled motorcycles. One is that the profit of the third round is higher, and the other is also what Feng Yu said, to reduce the risk.

They didn't see the risk before, but now they see it.

And because there are more and more manufacturers of motorcycles, from a dozen at the beginning to hundreds now, the profits of motorcycles are getting lower and lower.

The net profit of many motorcycle factories is only about 2%, that is to say, they can only earn 100 yuan for a motorcycle with a wholesale price of 5,000 yuan.

Most of the profits are made by retailers. Even so, none of them quit, and they are always making money.

The profit of Bingcheng Machinery's motorcycle project has also dropped severely. Fortunately, they have the highest brand awareness and the highest added value. Although it is far from double the profit at the peak, it still has a profit of about 15%, which is still the highest in the country.

In terms of three-wheeled motorcycles, the profit is similar. Therefore, although their market share has declined severely, they are still the most profitable and can still determine the pricing range of motorcycles.

Of course, they also provide better services, especially after-sales service, and the number of people who can repair their Songjiang motorcycles is also the most.

"President Feng, did you know that there would be such a ban a long time ago, so you didn't let us expand the production line of two-wheeled motorcycles and let us increase the production of three-wheeled motorcycles?"

"This is an inevitable trend. If you think about it carefully, you can understand it. The sales of two-wheeled motorcycles will definitely be affected. Our exports, especially to other countries in Southeast Asia, should still increase, so the overall sales volume , there won’t be much change in a year or two.”

"However, we must also be vigilant. The market is always changing, and our production of two-wheeled motorcycles cannot continue to expand. And we must adjust our models at any time according to market demand, so the proportion of road races and off-road vehicles will increase. The traditional The demand for street cars, cruisers, and station wagons will decrease."

"The best thing is that we can produce a low-cost motorcycle with these characteristics, which is bound to sell again. But I also know that this is difficult."

Li Mingde said, "Mr. Feng, we think so too. We plan to make our new street car improve off-road performance, increase speed, provide a more comfortable posture, and also have the capacity of a station wagon that can carry more cargo." Function."

"Have you successfully developed it?" Feng Yu was a little surprised. This kind of car is considered a crossover car, but it is not so easy to make.

"Success is success, but the cost is too high. If it is to ensure a profit, the price will be more than 10,000. Compared with the current mainstream motorcycles of 4,000 to 5,000, the price is too high. So we are still researching, Try to reduce the cost by a large amount within one year, and keep the selling price below 7,000 yuan, which should be enough to be competitive.”

It's a pity that now the transportation and police departments are buying less and less motorcycles. Instead, they are buying cars, otherwise the sales will be better.

But most of the cars that Zheng Fu purchased were Songjiang Automobiles, so he wasn't too depressed.

Feng Yu is very satisfied, the company is managed by such a person, so worry-free.

"Old Li, have you ever thought about whether the increase in gasoline prices will also affect the sales of motorcycles?"

"Oil prices are rising? Why are they going to rise again?"

If the price of oil rises, it will not only affect motorcycles, but even cars will be seriously affected. Just like their elf, many office workers can afford it, but many people who bought it say that they can't afford it at all.

"Not only will it rise this year, but the price of oil will rise even higher in the future. But at the same time, the price of electricity will continue to fall.

"Feng Yu said with a smile.

Oil prices up, electricity prices down?

Li Mingde's eyes brightened: "Mr. Feng, what do you mean, the sales of electric vehicles are about to increase?"

"Although electric vehicles are not as fast as motorcycles, they are also safer. In terms of sales price, electric vehicles are also cheaper. In addition, electric vehicles are more economical in terms of daily expenses in the future. In addition, there is no exhaust emission. It will definitely be encouraged and supported by the state."

"Electric vehicles will gradually replace motorcycles and become a means of transportation for many people. Do you think sales will increase?"

Motorcycles are not only due to price factors, but also because of national policies, etc. Motorcycles will gradually be replaced by electric vehicles as a means of transportation. This process may last for more than ten years, or even decades, but this is the trend.

Just like cars, the sales of electric vehicles and gas vehicles will increase in the future. Due to environmental considerations, various countries will also promote this type of cleaner energy vehicles. Then cars will slowly replace electric vehicles and become the main means of transportation.

"Mr. Feng, do we want to quickly expand the production of electric vehicles?"

"You should study and decide for yourself. Now that the sales are expanding rapidly, the sales volume is not that high at all. But after the sales volume skyrockets, if we expand again, we will fall behind. My suggestion is to start slowly increasing production now, and at the same time continuously improve our production capacity. Technology."

"Once the policy starts to tilt, it is time for us to rapidly expand production capacity. This time will not be too far away."

Even now, Bingcheng Machinery is the leader in the domestic electric vehicle market and the leader in the world. The production and sales of Bingcheng Machinery alone are comparable to the production and sales of all companies in many countries.

Of course, it is also because China is the largest market for electric vehicles in the world. In developed countries in Europe and the United States, with a small population and a large area, all people drive cars.

Electric vehicles are also encouraged in China now, but it's just an encouragement. After the motorcycle ban comes down, there will inevitably be some policy inclinations, and the sales of electric vehicles will definitely usher in another surge.

It's a pity that the profits of electric vehicles are not high. Bingcheng Machinery is doing well. Other domestic companies have similar profit margins to motorcycles.

"Old Li, you must remember that when the project is the hottest, you must also carefully consider how to develop it. Don't go all the way to the dark, and consider the issue of transformation."

At that time, Bingcheng Machinery, from agricultural machinery to motorcycles, to cars, and then to electric vehicles, each was related, but also different.

The advantage of this is that no matter who makes money, Bingcheng Machinery can make money, and can adjust and optimize the industrial structure at any time to ensure the company's profits.

"President Feng, don't worry, we all remember it, and there will never be any problems. By the way, the company has already made the motorcycle you mentioned last time. I brought one with me this time."

Feng Yu was overjoyed: "It's done? Great, I'll try it later!"

... (To be continued.)

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