TAIPEI, Taiwan - The production value of Taiwan's transportation vehicle industry declined to NT$120.9 billion (US$3.72 billion at NT$32.5:US$1) in the first quarter of 2006, down 12 % from the same period of the previous year, according to statistics released by the Industrial Economics and Knowledge Center's (IEK's) Industry and Technology Intelligence Services (ITIS) project. ITIS is sponsored by the Department of Industrial Technology under the Ministry of Economic Affairs.
Within the total output of the transportation vehicle industry, the automotive sector generated a production value of NT$86.6 billion (US$2.66 billion) in the first quarter, down 15.1 % from the same period of 2004; the island's powered two-wheeler (PTW) sector produced a value of NT$20.6 billion (US$633.85 million), up 2.2 %; and the bicycle industry had a value of NT$13.7 billion (US$421.54 million), down 7.3 percent.
Taiwan's complete-bicycle exports declined by 4.9 % in the first quarter to NT$8.53 billion (US$262.46 million), while exports of bicycle parts dropped by 7.3 % to NT$5.15 billion (US$158.46 million), mainly because the EU has started levying anti-dumping tariffs on bicycles made in mainland China and Vietnam, which indirectly affected the supply chains of bicycle and parts makers in Taiwan.
According to IEK-ITIS, 2005 was a good year for bicycle makers in Taiwan, with production of complete bikes growing by 17.4 % to about NT$33.9 billion (US$1.06 billion) and output of bicycle parts rising about 8.5 % to NT$21.7 billion (US$678.13 million). Overall growth in the bicycle sector reached 13.8 % for 2005.
This soaring growth, ITIS explains, resulted from the transition of local bicycle and parts makers into a higher-end segment of the market where products require higher quality, better functions, and greater added value.
IEK-ITIS says that the "A-Team," a strategic alliance formed between local complete-bike manufacturers and high-end parts makers, has been upgrading the added value of Taiwan-made bicycles by enhancing their image and broadening the sales channels for Taiwan-made bikes. The members of the alliance are both competitive and cooperative in nature. In terms of cooperation, the members work closely together in the joint development of market-leading products.
The favorable conditions in 2005 did not continue into the first quarter of 2006, the centre adds, as the EU anti-dumping tariffs, the delayed supply of new derailleur models from Shimano, and a supply shortage of carbon-fibre materials took their toll. During this tough period, Taiwan complete-bike manufacturers are aggressively trying to ramp up their domestic high-level model sales, and are also busy developing newer and better products to meet the demands of women and older riders.
Thanks to the efforts of the A-Team, IEK-ITIS says, in the future, high-end Taiwan-made bicycles are expected to be given more space in the outlets of independent bicycle distributors (IBDs) worldwide, which often sell higher-price, higher-quality bicycles.
The centre also points out new regulations coming into force in the major international bicycle market, such as the EU's anti-dumping tariffs and the Bicycle Association Approved (BAA) certification required in the Japanese market, which are expected to further accelerate the upgrading of Taiwan-made bicycle products and elevate their global competitiveness.
In 2005, the Bicycle Association of Japan consisted of domestic bike makers and bicycle and parts importers, introduced the BAA mark, which is attached to bicycles that pass the new standards. Both locally made and imported products are eligible for the certification. The standards, which place a particular emphasis on safety, cover such aspects as how well the brakes work, the strength of the frame, and how many light reflectors are used. (source: Sense)
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