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Six Months Needed to Sell National II Motorcycles in Stock Author: chinamotor - Source:CHINAMOTOR     Font size: A A A The Motorcycle & Light Motorcycle National III Emission & Fuel Evaporation Standards will be put into effect on July 1st of 2010. How should the Chinese motorcycle industry deal with it? The following is the opinion of Li Bin, the secretary of the China Association of Automobile Manufacturers' Motorcycle Department. Li Bin said that the Chinese motorcycle output was 25.4276 million units in 2009, down 7.54% year-on-year; the number of motorcycles sold was 25.4701 million units, down 7.3% year-on-year. The number of complete motorcycles exported was 6.2914 million units, down 35.64% year-on-year. According to the related statistics, China has been the world's number one motorcycle producer for 17 consecutive years. China's current motorcycle market structure is: about one third of its motorcycle output is exported, two thirds are sold at home; 20% of the domestically sold motorcycles are sold in cities whereas 80% are sold in rural areas. Li Bin told the reporter that China's related department would implement the 'National III Emission Standards'; the standards will go effective compulsorily on two-wheel motorcycles on July 1st of 2010 and on motor-tricycles on July 1st of 2011. The implementation of this policy will inevitably boost the industrial structure adjustment and technological change of the Chinese motorcycle industry; products upgrade has become an irresistible general trend; the National III standards will become the booster for the development of the Chinese motorcycle industry.? It's learned that Europe implemented the Euro III emission standards on January 1st of 2007; Honda and Yamaha's products which are sold to Europe have adopted the EFI technology. It's pretty simple for joint-ventures to carry out technological upgrade for its vehicles; most of their products had met the related requirements before they were introduced to China; only some slight improvement will upgrade them from Euro II to be able to meet the requirements of Euro III. It's a bit hard for the Chinese motorcycle producers to meet the requirements of the National III standards in a short time as the implementation of the National III standards will need the Chinese enterprises' common efforts in the field of management, design, production, supporting, cost control, quality control, sales, maintenance service and so on. Up to now, only 380 products which meet the requirements of the National III standards can be mass produced and launched onto market; their output is only nearly one third of their original output and enterprises' output capacity cannot be fully used so the Chinese motorcycle industry will run in the red and workers will lose their jobs. According to Li Bin, the Motorcycle Department carried out an investigation on the stocking situation of the motorcycle producers and found that their normal stock is about four months' to four and a half months' output (factory stock, motorcycles being transported, agent stock, retailer stock and examples in shops), so there exists a problem of disposing the National II motorcycles in stock. Li Bin said that this is a rather important problem.? In order to maintain the sustained and sound development of the Chinese motorcycle industry, the Motorcycle Department will negotiate with the Environmental Protection Department vigorously so as to apply for the prolong of sales time for the National II motorcycles and eliminate the National II motorcycles in stock. We hope that the government will prolong the sales period for National II motorcycles to December 31st of 2010 and give more time for motorcycle enterprises to dispose their motorcycles in stock and help motorcycle enterprises better achieve the transition stage from National II to national III standards. Li Bin gives an account of the work of the Motorcycle Department in 2010: first, it will continue to work on the abolition of the motorcycle purchase tax; second, it will work on the half-a-year sales prolong for the National II motorcycles after July 1st and help achieve the smooth transition from National II to National III; then, it will promote the corresponding work for National III products and cooperate with the government departments to supervise and investigate the National III motorcycle products; in addition, it will organise the industry's director enterprise (twenty of them) to sign the 'Environmental Protection Self-Discipline Convention' and promote self-discipline in the industry and compose the 'White Paper of the Chinese Motorcycle Industry' as well as holding 'the 9th China International Motorcycle Trade and Exhibition.'