Chen Ming-hwa, a 22-year-old college student, watched intently as a repairman here modified the engine on his gray 125cc Kymco motorcycle to increase its power to the equivalent of a 180cc bike.
But for Chen, the modification was not enough. By the end of the year, he hopes to buy an imported Kawasaki motorcycle with a much bigger engine that displaces at least 500 cubic centimeters. "I'm getting a little bit tired of a small bike," he said. "I want the feeling of a bigger bike."
Chen and many other Taiwanese will get their first chance on Monday. Under the terms of its accession to the WTO in December, Taiwan, one of the world's largest motorcycle markets, is dropping a ban on private registrations of bikes with engines bigger than 150cc.
More powerful motorcycles have been reserved for the police and the military here since before Chen was born, and they have acquired a special mystique as a result.
The ban was imposed in 1979 to conserve energy, but it has served as a trade barrier as well. Taiwan's three motorbike manufacturers -- Kymco, San Yang Industry and Yamaha, a joint venture between a Taiwanese company and Yamaha of Japan -- are extremely strong competitors in the market for small motorcycles, supplying the entire domestic market and exporting one-third of their production as well. But the Taiwanese manufacturers have little expertise in building large motorcycles.
Practically every major motorcycle manufacturer in the world is now preparing to re-enter the Taiwan market with bigger bikes, including full-line Japanese makers like Honda and Kawasaki and luxury and specialty brands like BMW of Germany and Harley-Davidson of the US. They are drawn to an unusual market where motorcycles outsell cars two to one -- the result of US$2.20-a-gallon gasoline prices, chronic traffic jams and average income still a bit below those in the West.
"Not importing for more than 20 years -- definitely, a lot of buying power accumulates," said Roland Lu, the special-sales manager in Taiwan for BMW motorcycles. BMW is planning to sell motorcycles with engines up to 1,200cc in Taiwan later this year, for prices reaching US$30,000.
Yeh Feng-ming, a spokesman for San Yang, said his company and its domestic competitors were confident that most Taiwanese would continue to buy small domestic motorcycles, because they are very cheap by world standards and can be serviced practically everywhere. Motor scooters with 50 cc engines retail for around US$1,000 here; motorbikes with 150cc, about twice that. The domestic manufacturers are also trying to develop motorcycles with engines of up to 250cc.
Still, government officials are watching carefully. "Taiwan is pretty advanced in the small scooters," said Yeh Wei-yu, the senior engineer for motorcycles at the Industrial Development Bureau. "The local industry is way behind on the larger bikes."
Many Taiwanese industries, including high-technology businesses like semiconductor and computer manufacturers, are moving operations to mainland China. But the motorcycle industry has stayed here, employing 10,000 people in this nation of 20 million, and that gives it extra influence with government officials who worry about the loss of manufacturing jobs.
China is trying to jump directly from bicycles to cars, skipping over motorcycles, which produce nearly as much air pollution as cars. The Chinese government has discouraged the establishment of a large domestic motorcycle industry.
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