Modularization in the Chinese Motorcycles Industry
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
"It is often observed that the Chinese companies have 'the capability to modify product architectures through parts copying and remodelling. 'In particular, what has been happening in the Chinese motorcycle industry which has become the world largest (13 million per year) can be regarded as a typical example of the 'modification of architecture.'"1
- Chunli Lee, Takahiro Fujimoto and Jin Chen in 2002.
"It is paradoxical to observe that after a long span of about two decades of development, even though the top companies have the capacity of one million units and the collective production volume has overtaken Japan to become the No. 1 in the world, the Chinese enterprises still keep on imitating the models from foreign companies…"2
- Dongsheng Ge and Takahiro Fujimoto in 2004.
World's Largest Motorcycle Manufacturer
Most Chinese motorcycles were offered at low prices and mainly targeted the low-end market segment. Their popularity was not restricted to just domestic markets.
1] Chunli Lee, Takahiro Fujimoto and Jin Chen,
"Trends of Open Product Architecture and Internationalisation of Private
Companies in the Chinese Automobile Industry,"www.imvp.mit.edu, 2002.
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