When I travelled with Zongshen motorcycle racing team for the Asia Road championship in Indonesia, I got some time to understand the investing condition and the society of this country together with it’s motorcycle market under the help of some local chinese.

Indonesia is a country made of islands, they have thousands of island, so it’s also called island country. The area of the country is around 1,900 thousand square meters, the population is around 21.4 million untill 2004. it’s the forth large population country. The country across the equator and have tropical climate. They have plenty of mineral resources, such as: gold, zinc, copper, rock oil, natural gas. And it’s also a member of OPEC, they have plenty of palm oil. Their industry is not very good and agriculture is their economical stanchion.

Thousands of motorcycle runing on the road of Jakarta, you can only see a few cars by the line of traffic lights which been surounded by motorcycles. The car is the minor role compare with motorcycle. And the motorcycle is not only the major vehicle but also the important working tool for most of the indonesia families. This country is the area for motorcycle. Indonesia’s economy had a big crash during the Aisa’s Financial Storm, watch through the street you can all most see no designed buildings, and you can smell that the economy here is still not been resuscitated. In these underdeveloped countries, car is only a luxury for minor of rich families, most of the family have to choose the motorcycle as their vehicle and produce tool for it's cheaper and useful. Before 2002, the chinese motorcyle corporations had play a major role in this market, for chinese motorcyle have a very competitive price which once captured most of Japanese motorcycle’s market share. But due to the malignant price cuting and the ignoring of qaulity, chinese motorcycle have big qaulity issue after launched to the market and then been abandoned by the comsumer at the end, chinese motorcycle drop out the indonesia market and even the whole southeast Asia market. While the Japanese motorcyle reoccupied the market seize the opportunity. Be known that the Japanese brand like Honda, Yamaha, Suzuki cpatured 80% of the southeast Asia market share. And the brand form Europe like Piaggio and brand form India like BAJAJ also take some minor part of the market. Watching Japanese motorcycle occupying the huge Asia market, I couldn’t help wonder, dose chinese motorcycle will just pass by the market like a wind? Dosen’t this market mean anything to all the chinese motorcycle maunfacturers?

Take the amount for example, indonesia has around 20 million of population, take 4-5 person as a family, so there is 40,000,000 families in the country, and If each family out of ten will add or buy a new motorcycle each year, the amount is 4,000,000 pieces, and if just take 1% of the market share, it is 40,000 pieces. That is a really attractive market.We cross the ocean to develop the African market, the South American market, but we will keep ignoring the Southeast Asia market untill when?

Compare to the Africa and South America, Southeast Asia is just near by us, and countries like Tailand, Vietnam, Indonesia, Filipine are less than 3000 kilometres away form china, that means the deliver time for the product is very short, the way of deliver can be chose by vehicle or ship, very convenient. And the required product is very simplex---CUB. I was travel with Zongshen Racing Team for the world endurance Championship Moto GP in Malaysia and Tailand stations. I went to look around and found that it is hard to see Cruiser and Chopper, it’s all most Cub. Been told by the local motor dealer, the displacement is form 100cc to 125cc. That is much sinplex than the chinese market about the product line. The technology of produce 100cc—125cc engine is very mature right now in china, and the product like Zongshen Cyclone ZS110-60(Zongshen Pursuit) is the representation of the new generation of chinese Cub, and it is just made according to the actual Southeast Aisa market.

Under a circumstance of china has steady political relashionship with Southeast Asia counties, the economy of Southeast Asia counties keep developing, the huge market of motorcycle, the sinplex product request, our Cyclone product will definitely capture the market if we concentrating on the qaulity control and the after sale service system.