Taiwan's Bicycle Export Value to Increase 10% Year-on-year in 2011

Dec 06, 2011 Ι Industry In-Focus Ι General Items Ι By Steve Chuang, CENS
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Taipei, Dec. 6, 2011 (CENS)--Steadily growing in the past 10 months of 2011, Taiwan's bicycle exports are expected to amount to US$1.65 billion at the end of the year, for a 10% increase over a year earlier, according to Michael Tseng, chairman of A-Team, a strategic alliance among Taiwanese bike and parts manufacturers.

Impervious to global economic doldrums, Taiwan's bicycle exports have totaled US$1.352 billion over the past 10 months of this year for a 12.58% growth year-on-year, with the average export price reaching US$372.49, sharply up 31.46% from a year ago.

Citing Merida Industry Co., Ltd., Taiwan's top-2 bicycle manufacturer, to testify the industry's prosperity, Tseng, president of the company, noted that his company expects to finish this year with the average export price of US$540, up 8% from 2010. The figure, he added, is estimated to further surge 35% in 2012, when the company will complete output expansions in China to secure a stronger growth drive.

Despite the mounting debt crisis in Europe, Tseng remains optimistic about the industry's business prospects in 2012, mainly because fast-growing market demand in China will offset sales sluggishness in European markets to help Taiwanese bicycle industry to keep afloat throughout the year. This is especially significant at a time when the cross-strait economic pact, ECFA (Economic Cooperation Framework Agreement), has wider opened the populous market to Taiwanese suppliers, according to Tseng.

In the face of South Korea inking FTAs (free trade agreements) with the U.S. and Europe, Hsu Li-chung, spokesperson of Giant Manufacturing Co., now the world's largest bicycle supplier by market shares, also urges the Taiwanese government to speed up direct talks with the U.S. and Europe over the signing of FTAs to safeguard Taiwanese supplier's global competitiveness.

Presently, Hsu indicated, Taiwan's bicycles exported to the U.S. and Europe are subject to a tariff rate of 5.5-11% and 13%, respectively. This, he stressed, will put Taiwanese companies in a very disadvantageous position in the competition against Korean rivals in the future.
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