The Rise of Motorcycle Firms: New Opportunities for the Auto Supply Chain

Gasgoo Munich- The auto industry's fierce competition needs no introduction. A year-long price war has squeezed per-vehicle profits, pushing OEMs to slash supply chain costs to the bone. Against this backdrop, a wave of auto parts suppliers is turning its gaze to a sector long overlooked: two-wheelers, specifically mid-to-high-end large-displacement models.

This isn't a whim. China's motorcycle sector is undergoing a deep structural shift. Data from the China Chamber of Commerce for Motorcycles shows total sales hit 21.9677 million units in 2025, up 10.25% year-on-year. Notably, leisure bikes with 250cc+ engines saw sales climb to 952,000 units, a 25.9% jump. Beyond volume, the structural shift matters more: electrification, intelligence, and premiumization are redefining the product, transforming bikes from simple transport into high-performance, tech-heavy lifestyle upgrades. 

Image source: CFMOTO

Behind this transformation lies a comprehensive push by motorcycle firms for better tech, quality, and branding. That very push creates a new opening for auto parts suppliers armed with deep technical expertise and systematic manufacturing capabilities.

Strategic moves by top players often signal the trend. Recently, CFMOTO, a leader in China's large-displacement segment, signed a long-term strategic pact with global braking giant Brembo. Their 17-year partnership—previously just buyer-supplier—is now a deep alliance involving joint R&D, product co-creation, and brand building. The message is clear: Chinese motorcycle firms are systematically overhauling their supply chains like automakers. They no longer just want parts that "work"; they want "advanced" partners with technical leadership, systemic strength, and brand power.

CFMOTO and Brembo representatives sign strategic cooperation agreement (Image source: CFMOTO)

To decode the industrial logic behind this upgrade and how auto parts suppliers can seize growth in the two-wheeler lane, Gasgoo engaged in deep discussions with CFMOTO executives.

From "Going Global" to "Moving Up," Supply Chain Partners Redefined

China's motorcycle industry has moved past the initial "going global" phase and is now "moving up." Export data confirms this: in 2025, export volume and value both rose, with export revenue reaching $8.85 billion, up 26.78%.

But for a company like CFMOTO, long established abroad, simply "going global" isn't enough. "We want better brands to support us, to help push CFMOTO to the forefront of the global stage," says Chen Zhiyong, vice president of CFMOTO.

Chen Zhiyong, Vice President of CFMOTO(Image source: CFMOTO)

The CFMOTO-Brembo deal goes beyond traditional supply. Under the agreement, they will establish a joint R&D mechanism, co-designing braking systems during the early vehicle development phase. CFMOTO is the first Chinese motorcycle brand to secure such deep collaboration. Going forward, Brembo won't just be an executor following blueprints; it will be a technical partner deeply involved in defining the product.

This upgrade reflects a fundamental rethink of the supply chain's role. "Signing this long-term agreement marks a new stage in our cooperation," says Xu Songquan, deputy general manager of CFMOTO's supply chain management center. The past 17 years were traditional buying and selling; the future is a new paradigm of joint R&D, co-creation, and brand building.

Xu Songquan, Deputy General Manager of CFMOTO Supply Chain Management Center(Image source: CFMOTO)

What does this mean for auto parts makers? The premiumization of motorcycles isn't a solo act by OEMs; it's a systemic project involving the entire supply chain. As motorcycle firms shift from "Made in China" to "Global Brand," they need partners with technical leadership, brand appeal, and global service capabilities—not just cheap parts. Suppliers already proven in the auto sector fit the bill perfectly.

It's a two-way value exchange. Brembo brings brand premium to CFMOTO; CFMOTO offers global manufacturing bases and marketing networks to help Brembo win favor in China. For auto parts suppliers eyeing the two-wheeler market, understanding and meeting these "advanced needs" first is key to seizing the lead.

Shared Tech Roots: Motorcycle "Three Trends" Spark Demand for Auto-Grade Parts

Tech upgrades in motorcycles are accelerating. Electrification, intelligence, and premiumization are the consensus. CFMOTO has set "globalization, electrification, intelligence" as its three parallel strategies, placing unprecedented demands on the supply chain.

In 2025, CFMOTO's R&D spending hit 1.22 billion yuan, or 6.18% of revenue. A breakthrough in proprietary R&D is the V4 SR-RR liter superbike. Its 997cc 90° V4 liquid-cooled engine pumps out 157kW (over 210 hp), redlines at 15,000 rpm, and hits a GPS-verified top speed of 315.82 km/h. This makes China the fourth nation to break the 300 km/h barrier, signaling that Chinese firms have the technical confidence to compete with top global brands in high-performance engines.

Intelligence is another key battleground. CFMOTO built C-LINK, now upgraded to C-Link OS 2.0. Four years in the making, it runs on a high-performance CPU chip with 13.8K DMIPS of computing power—nine times the industry standard for 7-inch flagship displays. It boots in under 1.5 seconds, supports smooth 60-frame animation, and handles remote OTA upgrades and HD navigation. For smart riding, high-end ZEEHO models now support ACC adaptive cruise, blind-spot monitoring, collision warnings, and sentry mode—tech that is cutting-edge for motorcycles even if common in cars.

Image source: CFMOTO

Electrification forms the third growth curve. In 2025, CFMOTO's electric two-wheeler brand ZEEHO sold 551,200 units, up 4.2 times year-on-year, while revenue jumped 3.8 times to 1.912 billion yuan.

Li Sanfeng, Deputy General Manager of ZEEHO Business Unit, introduces AE6 Ultra to the market(Image source: CFMOTO)

These changes send a clear signal: motorcycles are evolving from mechanical products to electromechanical, intelligent terminals. Where the supply chain was once dominated by machining—engines, frames, shocks—it now sees rapid adoption of categories native to auto supply chains: batteries, motors, electronic controls, sensors, smart cockpits, and ADAS.

Industry observers note that several auto smart-driving firms are systematically migrating mature solutions to two-wheelers. Traditional auto suppliers like Beidou Intelligence, Aptiv, and Valeo are already appearing in motorcycle smart supply chains. Ruili Kemi has tied up with car clients like Chery and Geely, as well as motorcycle makers like Qianjiang and CFMOTO.

This migration is accelerating—auto parts companies are shifting mature tech platforms, quality systems, and manufacturing capabilities to motorcycles, while bike makers use this to speed up iteration. A pattern of mutual convergence is taking shape.

Supply Chain Upgrade: Auto-Grade Capabilities Enter the Two-Wheeler Sector

Requirements for the supply chain are jumping. "China's auto supply chain has matured and is expanding outward," Xu Songquan says. "I believe the same tipping point is coming for motorcycles." The judgment is clear: the motorcycle supply chain is following the auto industry's path of the last two decades—moving from rough support to systematic, standardized, high-end operations.

CFMOTO 1000MT-X model equipped with Brembo braking system(Image source: CFMOTO)

Xu reveals CFMOTO is boosting supply chain quality and tech by bringing in partners with auto industry success. He outlined four key areas of focus:

1. Core new energy components. Battery cells for the ZEEHO brand are co-developed with auto-grade suppliers like SVOLT and Farasis Energy, requiring automotive-level safety certification.

2. Smart manufacturing and line integration. To build auto-grade capacity, CFMOTO requires bidders for key equipment to have served mainstream automakers. For its latest engine assembly line, for instance, bidders needed experience delivering projects over 10 million yuan for domestic top-10 OEMs like Geely, BYD, and Great Wall Motor.

3. Quality management systems. CFMOTO is building a new Quality Management System (QMS) to lift standards to auto industry levels. Covering new products, suppliers, processes, and markets, it demands implementers with experience in vehicle manufacturing quality systems.

4. Other potential areas: For general materials like logistics tools and steel, suppliers with experience in both auto and motorcycle sectors get priority.

Notably, CFMOTO has strict supplier selection and dynamic management mechanisms, constantly evaluating quality, delivery, price, and service. This isn't the old "once chosen, supplied for life" model, but continuous assessment and weeding out.

Deeper change lies in the nature of the relationship. CFMOTO is actively introducing top-tier brands. This openness means auto parts suppliers with technical strength and global vision can secure a higher strategic status and deeper cooperation in the motorcycle sector than in the auto industry. 

A selection of CFMOTO's supply chain partners

He expressed firm confidence in China's supply chain: "I never doubt that China's supply chain capabilities will surpass and even lead the world. The auto industry has already managed to overtake. Motorcycles, as a category of motor vehicles, aren't fundamentally different. The key is getting more people to pay attention, invest continuously, and develop together."

Conclusion

Motorcycle production and sales broke 22 million units in 2025, but the significance of structural upgrade outweighs sheer scale. Electrification, intelligence, and premiumization are reshaping the industry's logic—areas where auto parts suppliers excel. The signal from the motorcycle sector is clear: the market is growing, upgrading, and hungry for partners with auto-grade capabilities. Those who first pivot from "auto supplier" to "two-wheeler solutions partner" stand to gain the lead in this lane full of new growth.