Taiwan's success in high-end bikes seen at cycle show

The 2006 Taipei International Cycle Show opened in Taipei yesterday, drawing a record 650 exhibitors.

The show, the largest bicycle exhibition in Asia, runs until Saturday at the Taipei World Trade Center Exhibition Halls I and III. A total of 650 local and foreign bike manufacturers, up from last year's 620, are showing off their latest products, according to the organizers of the show, the Taiwan External Trade Development Council (TAITRA, 外貿協會) and the Taiwan Bicycle Exporters' Association (TBEA, 台灣區自行車公會).

Taiwan gained the nickname "Kingdom of Bicycles" in the 1980s. In recent years, China and India have gradually replaced Taiwan as the leading manufacturers of low-priced bikes, while Taiwan has shifted its focus to making high-end bikes.

Speaking at the opening ceremony, TBEA Chairman Yang Yin-ming (楊銀明) said that Taiwan's bike exports last year outpaced the previous year's level in terms of volume and value.

Taiwan exported 4.6 million bicycles last year, up 220,000 from the figure for 2004, representing year-on-year growth of 5 percent, Yang said.

He added that the total export value hit US$918 million, a phenomenal increase of US$720 million, or 27.5 percent over the 2004 level.

In addition, the average unit price of Taiwan-made bikes has quadrupled from US$44 in 1989 to US$199 last year. Some 80-90 percent of Taiwan-made bikes are for export, mainly to Europe, the US and Japan.

These facts demonstrate that Taiwan's bike manufacturers have made remarkable progress in upgrading quality and productivity and that the domestic bicycle sector's efforts to develop and manufacture products with high added value and create their own brand names have borne fruit, Yang noted.

However, Yang also admitted that Taiwan's bike makers are facing tougher operating conditions, due to continuing increases in raw material costs, EU anti-dumping measures against Vietnam and China, as well as Canada's adoption of safeguard measures.

For his part, TAITRA Chairman Hsu Chih-jen (許志仁) said that the Taipei International Cycle Show is one of the largest procurement fairs in Taiwan and attracts a large number of major foreign buyers every year.

Italian bicycle maker Atala S.P.A. and Halfords Group from the United Kingdom are expected to visit the cycle show to procure bicycles as well as parts and accessories totaling more than US$1 million, Hsu disclosed.

The show is expected to attract over 4,000 buyers from around the world, according to organizers.