The Taiwan Bicycle Exporters’ Association yesterday voiced optimism about the outlook of the nation’s bicycle manufacturing industry next year, given an upward trend in the average selling price of bike exports.
In the first 10 months of this year, the average selling price of an exported bicycle was US$540.76, a 10.5 percent increase from US$489.53 in the same period last year, data compiled by the Taiwan External Trade Development Council (TAITRA, 外貿協會) showed.
The unit price reflects the competitiveness of Taiwanese bicycle manufacturers, association secretary-general Gina Chang (張蕙娟) told reporters after a news conference, adding that the decline in bike export numbers might be short term.
From January to October, the nation’s exports of nonelectric bicycles totaled US$1.067 billion, a 13.16 percent decrease from US$1.228 billion in the same period last year, with overseas shipments falling 21.33 percent to 1.97 million units, TAITRA data showed.
Sales over that period for the nation’s largest bicycle maker, Giant Manufacturing Co Ltd (巨大機械), dropped 4.82 percent year-on-year to NT$46.15 billion (US$1.54 billion), while Merida Industry Co’s (美利達) revenue fell 3.39 percent to NT$18.49 billion, the companies’ filings with the Taiwan Stock Exchange showed.
The downturn in exports could be attributed to slower customer demand in major markets, as the global economy has not yet fully recovered from a recession over the past few years, the association said.
Shipments to the US, the sector’s largest export destination, fell 2.79 percent in the first 10 months, while exports to the Netherlands and the UK dropped 6.74 percent and 20.9 percent respectively, TAITRA data showed.
“However, worldwide demand is expected to pick up next year amid improving sentiment in Europe’s economies,” Chang said, without providing a detailed growth forecast.
The strong growth momentum in the electric bicycle and bicycle component sectors could also lend support to the local industry in coming years, as electric bikes and high-end bike parts have begun to gain acceptance and technological thresholds for those products are usually higher, he said.
Higher entry barriers enable Taiwanese bicycle makers to compete with their Chinese peers, which mainly supply low-priced models, Chang said.
Taiwan’s electric bicycle exports in the first 10 months totaled US$196 million, a 70.83 percent surge from US$115 million a year earlier, while bicycle component shipments rose 11.89 percent year-on-year from US$873 million to US$977 million, TAITRA data showed.
Eyeing long-term potential in the electric bicycle market, Giant aims to lift its revenue contribution from electric bikes to 10 percent by 2022, compared with last year’s 7 percent, company officials said earlier this year.
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