Li Mingde looked at Feng Yu in a daze. If the city imposed such a ban, then the motorcycle sales will be affected.
The second-hand motorcycles in the city will flood the rural areas. Both markets will shrink at the same time.
Luckily, Bing City Machinery Company did not increase the production of two-wheeled motorcycles two years ago. They had increased the production of three-wheeled motorcycles. Three-wheeled motorcycles had higher profits, and Feng Yu had lowered the risks.
Previously, they did not know what the risks were. But now, they knew.
There were more and more motorcycle factories producing motorcycles. Now, there were more than a dozen factories producing motorcycles. This caused the profits to drop.
Many motorcycle factories' net profits were only about 2%. That means for a 5,000 RMB motorcycle, they could only make 100 RMB.
Most of the profits were taken away by the retailers. Even so, none of the retailers quit. They were still making money.
Bing City Machinery Company's motorcycle profits had also dropped. Luckily, their brand awareness was the highest, and their brand value was the highest. Although their profits were not double of their peak, their profits were still about 15%. It was still the highest in China.
The three-wheeled motorcycles' profits were about the same. Although their market share had dropped, their profits were still the highest, and they could still control the pricing of the motorcycles.
Of course, they also provided better services, especially after-sales services. Most of them knew how to repair Songjiang Motorcycles.
"General Manager Feng, did you know about this ban? That's why you stopped us from expanding our two-wheeled motorcycles production and increased the production of three-wheeled motorcycles?"
"This is an inevitable trend. If you all think about it carefully, you will also understand. The two-wheeled motorcycles' sales will be affected. Our exports, especially to other Southeast Asian countries, will still increase. That's why our overall sales will not change for the next one to two years. "
"But we must be careful. The market is changing, and our production of two-wheeled motorcycles cannot continue to increase. Also, we must adjust our models according to the market demand. That's why the demand for road racing and off-road vehicles will increase, and the demand for street cars, cruisers, and touring vans will decrease. "
"The best thing is that we can produce a low-cost motorcycle with all these features. This motorcycle will surely sell well again. But I know this will be difficult. "
Li Mingde said, "General Manager Feng, we think so too. We intend to improve our new street car's off-road performance, increase its speed, and provide a more comfortable posture. It also has the function of a station wagon that can carry more cargo. "
"You've successfully developed it?" Feng Yu was a little surprised. This was considered a crossover vehicle, and it wasn't easy to make.
"It's a success, but the cost is too high. In order to guarantee a profit, the price must be more than ten thousand. Compared to the mainstream four to five thousand yuan motorcycles, the price was too high. That's why we're still researching and trying to lower the cost by a large margin within a year. If the selling price is below 7,000 yuan, it should be competitive enough. "
It was a pity that the traffic and police departments were buying fewer and fewer motorcycles. Instead, they were buying small cars. Otherwise, the sales would be even better.
But most of the cars purchased by the government are Songjiang Motors. That's why he is not frustrated.
Feng Yu was very satisfied. Handing over the company to such a person to manage was such a relief.
"Old Li, have you ever thought that if the price of gasoline increases, will it affect the sales of motorcycles?"
"Rising oil prices? Why is it going up again? "
If the oil price increases, it will not only affect motorcycles. Even cars will be affected. Take their elves for example. Many office workers could afford to buy them, but many of them said that they couldn't afford to raise them.
"Not only the oil price will increase this year, but it will also increase in the future. But at the same time, the price of electricity will continue to drop. "Feng Yu smiled.
Rising oil prices, falling electricity prices?
Li Mingde's eyes brighten up. "General Manager Feng, are you saying that the sales of electric scooters will increase?"
"Although electric scooters are not as fast as motorcycles, it means they are safer. The selling price of electric scooters is also cheaper. Also, electric scooters will save on daily expenses in the future. Also, there are no emissions, and the government will encourage and support electric scooters. "
"Electric scooters will gradually replace motorcycles as the transportation tool for many people. Do you think the sales will increase?"
Motorcycles are not only because of the price, but also because of the government's policies. Electric scooters will slowly replace motorcycles as the transportation tool. This process might last for more than a decade or even a few decades. But this is the trend.
It is the same for cars. In the future, the sales of electric and gas-powered cars will increase. Many countries will also promote cars that use cleaner energy sources due to environmental concerns. After that, cars will slowly replace electric scooters as the main transportation tool for people.
"General Manager Feng, are we going to increase the production of electric scooters?"
"You all can decide on this yourself. The sales will not be that high now. But after the sales increase, we will be lagging behind. My suggestion is to increase the production slowly and at the same time, upgrade our technologies. "
"Once the government starts to change, it will be the time for us to increase our production. It will not be too long before that happens. "
Even now, Bing City Machinery is still the leader of electric scooters in China and the world. Just Bing City Machinery's sales alone is more than all the companies in many countries.
Of course, it is also because Hua Xia is the world's biggest market for electric scooters. In the developed countries in the US and Europe, the population is small, and most people drive small cars.
Now, China is also encouraging electric scooters, but it is only encouraging. After the ban on motorcycles is lifted, the government will change their policies, and electric scooter sales will increase again.
But the profits from electric scooters are not high. Bing City Machinery is still doing well, but the other companies in China have the same profits as motorcycles.
"Old Li, you must remember to consider how to develop the project when it is the most popular. Don't go down the same path. You must consider the changes. "
In the past, Bing City Machinery's agriculture machinery, motorcycles, small cars, and electric scooters. Every industry is related to each other, but there are some differences.
The advantage of this is that no matter which industry makes money, Bing City Machinery will make money too. Also, Bing City Machinery can adjust and optimize the company's structure to ensure the company's profits.
"General Manager Feng, don't worry. We will remember this, and there will not be any problems. Oh, the company had already manufactured the motorcycles you mentioned last time. I had brought one with me. "
Feng Yu was overjoyed: "You have manufactured it? That's great. I will try it later! "
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