Taiwan Bike Makers Focus on China's Domestic Market

TAIPEI, Taiwan – The Chinese domestic market for bikes and bike products is growing rapidly; in 2005 e-bike sales skyrocketed with about 80% to a total of over 12 million units. Taiwan bike makers Merida and Ideal intend to profit from that booming market and are focusing more and more on bike sales in China. Merida recently announced that it will invest US$ 10 million (€ 7.7 mn) on its second China factory, which will open with a capacity of 500,000 units annually in 2008. The plant will be located in Shandong Province and target the northern China domestic market. Ideal has also announced expansion plans in China, including the manufacture of carbon fiber frames. Giant continues to operate three factories in China.
Taiwan’s big makers saw slight growth when they counted their China factories, with the Giant Group leading the way with over TWD 27 billion(€ 630 mn) in global revenues (up almost 4%) and nailing down 10% of the global market. But of Taiwan’s major producers, only Merida saw sales grow in Taiwan last year. As a whole, the island saw its exports shrink in both units and value, with only 3.43 million units shipped in the first ten months (down 11.8%) generating US$ 672 million (€ 517mn) in revenues (down 10%).