Li Mingde looked at Feng Yu blankly. If the city issued such a ban, the sales of motorcycles would definitely be seriously affected.
Second-hand motorcycles in the city will flood the rural market, which means both markets are shrinking 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 profits of three rounds are higher, and the other is what Feng Yu said, which is to reduce risks.
They didn't see what the risks were before, but now they do.
And because there are more and more motorcycle manufacturers, from a dozen at the beginning to hundreds now, the profits of motorcycles are getting lower and lower.
The net profit of many motorcycle manufacturers is only about 2%, which means that for a motorcycle with a wholesale price of 5,000 yuan, they can only earn 100 yuan.
Most of the profits are made by retailers. Even so, no one quits and they are still making money.
The profits of Bingcheng Machinery’s motorcycle project have also declined severely. Fortunately, they have the highest brand awareness and the highest brand added value. Although it is far from double the profit at its peak, it still has a profit of about 15%, which is still the highest in the country.
As for three-wheeled motorcycles, the profits are similar. So although their market share has declined severely, they are still the most profitable and can still influence the pricing range of motorcycles.
Of course, they also provide better services, especially after-sales service, and they have the most people who can repair their Songjiang motorcycles.
"Mr. Feng, did you already know that there would be such a ban, so you didn't let us expand the production line of two-wheeled motorcycles and asked us to 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 grow, so the overall sales , not much will change in a year or two.”
"However, we must also be vigilant. The market is constantly changing, and our two-wheeled motorcycle production cannot continue to expand. Moreover, we must adjust our models at any time according to market demand, so the proportion of road racing, off-road vehicles, etc. will become higher and higher. Traditional The demand for street cars, cruisers and station wagons will decrease."
"The best thing is that we can produce a low-priced motorcycle that takes into account these properties, and it will definitely sell well again. But I also know that this is more 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 have the ability to carry more cargo like a station wagon." Function."
"Have you successfully developed it?" Feng Yu was a little surprised. This kind of crossover is not that easy to make.
"It was successful, but the cost was too high. To ensure a profit, the price would have to be more than 10,000 yuan. Compared with the current mainstream motorcycles of 4,000 to 5,000 yuan, the price is too high. So we are still studying, We will strive to reduce the cost by a large margin within one year, so that the selling price will be below 7,000 yuan, which should be sufficiently competitive."
It's a pity that traffic and police departments now purchase less and less motorcycles. Instead, they purchase cars, otherwise sales would be better.
But most of the cars purchased by the government were from Songjiang Automobile, so he was not too depressed.
Feng Yu is very satisfied. It is so worry-free to hand over the management of the company to such a person.
"Lao Li, have you ever thought about whether if the price of gasoline rises, it will also affect motorcycle sales?"
"Oil prices are rising? Why do they have to rise again?"
If oil prices rise, it will not only affect motorcycles, but also cars will be seriously affected. Take their elf for example, many office workers can afford it, but many people who buy it say they can't afford it at all.
"Not only will it rise this year, but oil prices will rise higher and 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 rise, electricity prices fall
Li Mingde's eyes widened: "Mr. Feng, are you saying that the sales of electric vehicles are going to increase significantly?"
"Although electric vehicles are not as fast as motorcycles, they also mean they are safer. In terms of sales price, electric vehicles are also cheaper. Moreover, in terms of daily expenses in the future, electric vehicles will also be more economical. In addition, there are no exhaust emissions. It will definitely be encouraged and supported by the country.”
"Electric vehicles will gradually replace motorcycles and become the means of transportation for many people. Do you think sales will increase?"
Not only because of price factors, but also because of national policies, motorcycles will slowly 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 cars, gas cars, etc. will be higher and higher in the future. Countries will also push for such cleaner energy vehicles due to environmental considerations. Then cars will slowly replace electric vehicles and become the main means of transportation.
"Mr. Feng, do we need to rapidly expand the production of electric vehicles?"
"You should study and decide on this yourself. We are expanding rapidly now, and sales are not that high at all. But if we expand again after sales surge, we will fall behind. My suggestion is to start slowly increasing production now, and at the same time continue to improve our Technology."
"Once the policy begins to tilt, it will be time for us to quickly 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 volume of Bingcheng Machinery alone is comparable to the production and sales volume 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 America, where the population is small and the area is large, most people drive cars.
Nowadays, electric vehicles are also encouraged in China, but it is just encouragement. After the motorcycle ban is lifted, there will inevitably be some policy inclinations, and the sales of electric vehicles will definitely see a surge again.
It's a pity that the profits of electric vehicles are not high. Bingcheng Machinery is not bad. The profit margins of other domestic companies are similar to those of motorcycles.
"Lao Li, you must remember that when the project is at its peak, you must carefully consider how to develop it. Don't go all the way to the end, you must consider the issue of transformation."
Back then, Bingcheng Machinery went from agricultural machinery to motorcycles, then to cars, and then to electric vehicles. Each one was related, but also different.
The advantage of this is that no matter which one makes money, Bingcheng Machinery can make money, and it can adjust and optimize the industrial structure at any time to ensure the company's profits.
"Don't worry, Mr. Feng. We have all remembered it and there will definitely be no 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: "Did you make it? Great, I'll try it later!"
… (To be continued.)