Reborn since 1993

Chapter 1350 On the Importance of Clinging to Powerful Backers: Choice is More Important than Effort
"The electric bicycles developed by Chitu Technology are currently selling well in many parts of Shandong Province, with daily sales already exceeding 10,000 units!"

"Some experts predict that electric bicycles may become a new mode of transportation!"

"The electric bicycle market has the potential to continue expanding in the future, becoming the third largest family and personal riding tool product after bicycles and motorcycles."

"However, some experts are skeptical about the safety of electric bicycles, especially after their large-scale promotion, as batteries may become the biggest safety hazard!"

In the headquarters building of Jialing Motorcycle in Sichuan, several key figures of Jialing Motorcycle gathered together, watching the news on television.

Sichuan is one of the major bases for motorcycles in China, especially Chongqing, which is known as the motorcycle capital of mainland China.

It is the headquarters of many of the top ten motorcycle brands in China by shipment volume, including Jialing Motorcycle, Loncin Motorcycle, Jianshe Yamaha Motorcycle, and Lifan Motorcycle.

Lifan Motorcycles and Lifan Motors are from the same company. Before the era of new energy vehicles arrived, there was a car company that acquired Lifan Motors and obtained a car manufacturing license. That company was called... Li Auto.

Besides these four companies, Zongshen Motorcycle is also close behind. These motorcycle brands together form the Chongqing gang of the motorcycle industry. Together, these motorcycle brands have an annual shipment volume of over three million units, accounting for a quarter of the total domestic motorcycle shipment volume.

Moreover, it's not just motorcycle brands; Chongqing also has a large number of OEM motorcycle factories, and there are thousands of manufacturers, large and small, that provide motorcycle parts.

From motorcycle engines to frames, wheels, electrical components, dashboards, and other motorcycle parts, Shancheng can make them all.

It's no exaggeration to say that if you want to launch a new motorcycle brand, all you need to do is take some money, drive around the mountain city, and you can scrape together enough to build up a new motorcycle, slap on a label, and sell it.

Now, it can be said that motorcycles are the pillar industry of this mountain city, accounting for nearly one-fifth of its GDP.

The number of people working directly in the motorcycle industry in Chongqing is close to 300,000. As for those engaged in motorcycle sales, after-sales service, and repair, there are also close to 100,000 people. At its peak, nearly 400,000 to 500,000 people in Chongqing relied on the motorcycle industry for their livelihood.

However, following the Asian financial crisis, which caused domestic motorcycles to collapse in the Southeast Asian market, the motorcycle industry in Chongqing also suffered turmoil and has yet to recover.

"Qilu has the light cavalry Suzuki, yet they couldn't suppress Red Hare!"

The speaker was Zhao Haiqing, the vice president in charge of Jialing's marketing department. Looking at the electric bicycle that suddenly appeared and came on strong, his voice became somewhat heavy.

The domestic motorcycle industry is currently in a period of turmoil, and the impact of the defeat in Southeast Asia continues to this day.

Losing the Southeast Asian motorcycle market is not just a matter of losing it; it completely ruins the reputation of domestically produced motorcycles.

This is true not only in Southeast Asia, but also in the domestic motorcycle industry. Now, when you mention Japanese or Korean motorcycle brands, people in both China and Southeast Asia feel that they are very prestigious, brand-name products, and of higher quality.

People shake their heads at the mere mention of domestically produced motorcycles. Therefore, the most important thing for domestically produced motorcycles is that their reputation has collapsed and they have lost the trust of users.

Japanese motorcycles are expensive, but their sales are astonishing. Domestic motorcycle brands can only follow behind and pick up scraps.

It seems that the sales of domestically produced motorcycles are not bad, but they rely on low prices to achieve high volume. In reality, the high-end motorcycle market is completely dominated by Japanese and Korean motorcycles, and the other side earns the lion's share of the profits.

Even Japanese brands get all the meat, joint venture motorcycles gnaw on the bones, and only domestic motorcycles get a little soup, and then they are criticized for being of terrible quality.

This is the current predicament of domestic motorcycles. They were already in a precarious situation, and now they've encountered the electric bicycles produced by Chitu.

The Red Hare's sweeping momentum across Shandong province has caused concern within the motorcycle industry.

"Judging from the attitude shown by Qilu, it is clear that they are betting on Chitu electric bicycles and want to establish an electric bicycle production base."

As for the Qilu Light Cavalry Group, they're probably already ranked after Red Hare!

He Shibin, the head of Jialing Motorcycle, looked very solemn as he watched the news on TV.

He was someone who experienced the rise and fall of Jialing Motorcycles. Under his leadership, Jialing Motorcycles topped the domestic motorcycle sales charts and even surpassed Japanese motorcycle brands in sales in Southeast Asia.

But under his leadership, Jialing Motorcycles suffered a crushing defeat in Southeast Asia. Almost overnight, the market was completely lost, and Japanese and Korean motorcycles snatched it all away without any effort.

Moreover, He Shibin knew that if domestically produced motorcycles became crudely made and lacked after-sales service, it would be difficult for them to return to Southeast Asia.

"Whimsical!"

Li Huaguang, who is in charge of the technical department of Jialing Motorcycle, said indignantly, "Qilu is completely overthinking things. They think they can replace motorcycles with electric bicycles, which have no technical content whatsoever and are like electric toys?"

"After a few years, when the motorcycle industry recovers, Qilu will know what regret is!"

Li Huaguang, a technician, looked down on electric bicycles, believing that they had no technical content at all. He thought they were just a battery and two wheels, without even a motor, and what was the difference between them and electric toys?
"Qilu is supporting Chitu electric bicycles, everyone can see that!" "It's estimated that it won't be long before Chitu starts selling in places other than Qilu. At that time, the motorcycle industry will probably be in for a stir!"

Huang Jingyu, the financial director of Jialing Motorcycle, also spoke up.

Then, seeing that Li Huaguang still looked indignant, she added, "It's true that Chitu is a new brand, but its parent company is Dongling High-Tech!"

Upon hearing the name Dongling High-Tech, the key figures at Jialing fell silent for a moment.

Dongling High-Tech did not enter the motorcycle industry, but its founder has a considerable reputation in the domestic motorcycle industry.

There's no other reason than that Li Dashanren "predicted" the defeat of domestic motorcycles in Southeast Asia several years ago, when they were booming.

At the time, after Li Dongling made his prediction, many motorcycle companies even spoke out to mock him, saying that he was a complete outsider and yet dared to give unsolicited advice on the motorcycle industry.

Some motorcyclists even mocked Li, saying he should buy a motorcycle first and then ride the wave of popularity of this "real man" industry.

And then, that was it. Those motorcycle manufacturers who mocked Li Dashan back then are probably buried with grass growing taller on their graves by now.

The name Li Dongling has become a taboo in the domestic motorcycle industry. Nobody wants to mention it easily and avoids it like the plague, fearing that if the great philanthropist Li were to unleash another "prophetic spell," the domestic motorcycle industry would be doomed!

Hearing Huang Jingyu mention Dongling High-Tech, He Shibin and the others fell silent for a moment.

Li Huaguang, who believes that electric bicycles have no technological content, remained silent. He can mock Chitu, but would he dare to say that Dongling High-Tech has no technology?

Although unwilling to admit it, Li Huaguang was well aware that if Dongling High-Tech were to suddenly enter the motorcycle industry, given Dongling High-Tech's style of disrupting the industry's order upon entering it, domestic motorcycle manufacturers might have a harder time facing Dongling High-Tech than facing competitors like Japan and South Korea.

If you don't believe me, ask those domestic computer manufacturers in the computer industry: are they willing to face overseas computer brands, or are they willing to go toe-to-toe with Dongling High-Tech?

"there is always a solution to a problem."

After a long pause, He Shibin uttered these words, which, when translated, mean "do nothing!"

But in reality, Jialing Motorcycles can't do much right now; should they switch to the electric bicycle market?
Stop talking nonsense. He Shibin may have the idea of ​​testing the electric bicycle market, but now all the motorcycle companies in the mountain city have been hijacked!

He wanted to transform the business and asked his component suppliers and production line staff if they would agree.
A large ship is hard to turn around. The motorcycle industry chain in Chongqing is too "heavy" and can only go down one path. The hundreds of thousands of people engaged in the industry simply cannot allow Jialing Motorcycle to change course.

After news broke that the Chitu was selling very well in Shandong, the motorcycle industry did take notice of it, but major motorcycle manufacturers, including Jialing, remained on the sidelines and observed the situation.

The motorcycle giant, burdened by its past, was unable to retaliate immediately despite feeling threatened by the Red Hare. Of course, saving face was also a factor; shifting to making "low-tech" electric bicycles seemed to diminish the brand's prestige...

On the contrary, news about Chitu caused quite a stir in the bicycle industry.

Because bicycles are faring even worse than motorcycles, the domestic bicycle market is already completely saturated.

For bicycle brands like Forever, Phoenix, and Flying Pigeon, each one is facing increasingly difficult times. The emergence of Chitu is like a ray of light in the darkness for the domestic bicycle industry!
……

"Contact Red Hare!"

Inside the Phoenix bicycle company in Shanghai, amidst a heated argument, the head of the company, Chen Guoqing, overruled everyone's objections and instructed Phoenix Bicycles to contact Chitu to see if there were any opportunities for cooperation. Phoenix was willing to provide parts for Chitu, or even... OEM manufacturing!
After all, there is precedent for this. Another long-established company in Shanghai, Shanghai Radio Factory No. 3, is the manufacturer of Chunlei radios.

Previously facing bankruptcy, it secured an export order for Dolphin Radio from Feiyan Technology, which suddenly revitalized Shanghai Radio Factory No. 3.

Now, Shanghai Radio Factory No. 3 has almost become one of Feiyan Technology's contract manufacturers. It was officially restructured two years ago and accepted Feiyan Technology's investment. Now it has become one of Feiyan Technology's contract manufacturers. Chen Guoqing also heard that Shanghai Radio Factory No. 3 is preparing to set up an MP3 production line and will also do foreign trade orders in the future!

The No. 3 Radio Factory in Shanghai has now become a typical case in Shanghai, with its treatment and benefits far exceeding those of other factories.

If Shanghai Radio Factory No. 3 can bend down, what can't Phoenix bicycles do? Survive, preserve the Phoenix brand in Shanghai, preserve Phoenix's listing on the stock market. If he can do that, Chen Guoqing will be the man who saves Phoenix from dire straits!

……

"Mr. Li, today, Chitu's sales have officially surpassed 100,000 units, with revenue exceeding 259.9 million RMB!"

Over the phone, Li Dongling could hear Guan Zhenming's triumphant voice.

(End of this chapter)