November 27 2013.

As more and more established European and Japanese motorcycle brands join forces with Chinese manufacturers, Trader columnist Sean Kerr assesses the rise of the joint venture in the upcoming December issue of Motorcycle Trader magazine.

International joint ventures (JVs) have proved invaluable to the Chinese motorcycle industry. From technology-sharing to promoting brand recognition, JVs have long been the difference between success and failure for some Chinese motorcycle companies.

China’s latest automotive industry policy release advises that foreign investors will be permitted to control stakes of more than 50 per cent in automobile and motorcycle joint ventures with Chinese partners provided their JVs are built in China's export processing zones and aimed at overseas markets, making China a lucrative manufacturing ground for many big motorcycle companies.

As if to qualify this phenomenon, BMW Motorrad has announced an increase in its cooperation with Chongqing giant Loncin. On 23rd October, Loncin entered into a long-term supply agreement of large-displacement engines with BMW Motorrad, and the supply is expected to number 30,000 sets.

Loncin will manufacture and supply high-tech water-cooled motorcycle engines for BMW according to product technical plans provided by BMW Motorrad. As part of this deal, Loncin will invest about ¥100 million. Loncin first entered into a JV agreement with BMW Motorrad to manufacture BMW 650cc single-cylinder engines in 2005, and the Chinese company remains the only large-displacement engine supplier of BMW in Asia. Experts in the industry indicate that, since the output of BMW 650cc single-cylinder engines last year exceeded 10,000, this new supply of large-displacement engines will become an important growth point for the future performance of Loncin.

To find out more turn to pages 36-37of the December issue of Motorcycle Trader, due to land with the trade and industry early next week.