NEWS CENTER

2018

In 2017, where will Diansan go?

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After more than 10 years of rapid development, the electric tricycle industry reached a turning point in 2016, with production and sales gradually declining, hovering around 9 million units. The market capacity is becoming increasingly saturated, the competition between brands is becoming fiercer, and the price war is rising one after another. The industry is facing a grim situation of more monks than porridge. With the increasing market control efforts of national and local governments, as well as the environmental policies and price hikes in 2017, the direction of the electric tricycle industry is a complex question for enterprises to consider.

Government prohibitions are a major tightening curse in the electricity industry

I believe industry insiders still remember last year's "three wheeled cemetery" in Shenzhen, where electric two wheeled vehicles, three wheeled vehicles, and four wheeled vehicles, whether new or old, were piled up in a disorderly manner in the cemetery, and the scene of being destroyed by excavators and rollers was heartbreaking. In the early spring of 2017, a similar situation occurred in Jinan, Shandong. Since March 9th, Jinan has been conducting strict inspections on illegal use of tricycles and four-wheeled vehicles on the road, resulting in an increasing number of vehicles in Jinan's illegal traffic parking lots, making it difficult to escape the fate of being dismantled. Of course, such cases are still being or will be staged in other cities across the country.

The tricycle was seized by traffic police and banned from the road, resulting in complaints from users and dealers, with no door to cry. The user seeks a merchant to return the car, but the merchant is legally operating, so there is no reason for a return of the sold product; Merchants can find manufacturers to return goods, but legitimate manufacturers have legal production certificates and there is no reason for returns. As for those informal small manufacturers, they do not have production licenses and will not return goods to merchants. Therefore, from manufacturers to merchants to consumers, they have been subjected to unbearable government bans, which can have a huge impact on the morale of the entire industry.

For the electric tricycle industry and the entire motorcycle industry, "prohibition and electricity restriction" has always been a tight curse that hinders the healthy development of the industry. It is no exaggeration to say that "prohibition and electricity restriction" is a sword of Damocles hanging over the top of the motorcycle industry, which may cut off the prosperity of this industry at any time. Countless facts have proven that in order for China's motorcycle industry, including the electric tricycle industry, to achieve a real qualitative leap, it is absolutely impossible to do so without policy encouragement and protection. We can only linger in the cracks of policy.

However, although the electric tricycle industry is facing many local governments' bans and crackdowns, as people describe it, it is a grassroots industry that meets the real needs of most grassroots people in China and is in line with the laws of market economy development. Therefore, it is always "wildfire cannot burn out, spring breeze blows again".

Since people have needs and businesses need to survive, the electric tricycle industry also needs to continue to move forward. Setting aside policy constraints, the electric tricycle industry must strengthen its own cultivation, practice internal skills, and achieve true transformation and upgrading in order to cope with the harsher economic wave.

Keywords:

tricycle