News Article

Worries Rising in Taiwan as Export to Europe Continues to Decline

Sales & Trends

In the first quarter of 2012 Taiwan exported a total of 1.2 million bicycles, down 9.1% from a year earlier, according to statistics released by the country’s Industrial Development Bureau. How much the drop in export to Europe exactly is during the named periode is not specified.

Worries Rising in Taiwan as Export to Europe Continues to Decline

TAIPEI, Taiwan – In the first quarter of 2012 Taiwan exported a total of 1.2 million bicycles, down 9.1% from a year earlier, according to statistics released by the country’s Industrial Development Bureau. How much the drop in export to Europe exactly is during the named periode is not specified.

However, that Taiwan’s bike export like in 2011 also in 2012 continues to decline, is certain. The weak euro, disappointing weather conditions in spring as well as the drop in consumer spending in all euro zone countries is causing Taiwan export decline.

Facing financial troubles
On the grapevine it is said that parts makers in Taiwan are worried due to the drop in export to Europe. It’s also said that one of the bigger component manufacturers is facing financial troubles. Europe is the key market for the Taiwan bicycle industry including the country’s two leading bicycle makers Giant and Merida.

According to a last Friday Taiwan newspaper report Giant said the industry will be affected by the weak euro because the European market accounts for more than 20% of its total sales. The weaker euro and the eurozone crisis have slowed exports to the region, Giant acknowledged, but it stressed that it was making up for the slowdown with stronger sales in the United States and China.

Foreign exchange losses
Merida, the nation’s No. 2 bike manufacturer, said it did not expect to directly feel the impact of the weak euro because its exports are all sold in US dollars, but it felt its European subsidiaries would be vulnerable to foreign exchange losses.

On the 1.2 million bicycles that Taiwan exported in the first quarter of this year the average unit price rose 12.7%. In 2011 Taiwan’s export to Europe dropped 18.8% in units to 2.7 million and 17% in value to an average unit value of 177.93 euro.
 

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