Merida and Giant E-Bike Sales Accelerate
TAICHUNG, Taiwan – Merida’s strategy to strengthen its market position in Europe by expanding its e-bike range is starting to pay off. Taiwan’s second largest bicycle manufacturer is likely to increase its revenue this year thanks to growing demand of e-bikes in Europe.
This year Merida expects that their e-bikes are to generate some 30% of the company’s overall revenues based on a sales volume of 150,000 units. In 2017 e-bikes contributed for 19.6% to Merida’s sales revenues. According to a report in the Taipei Times, “The bicycle manufacturer forecasts a 60% increase in its high-priced electric bikes sales this year.”
Increasing e-bike export share
Despite the successes with e-bikes Merida faced a drastic decline in export of conventional bicycles. The increase in e-bike sales was not enough to compensate for that loss. This is in line with Taiwan Bicycle Association’s 2017 market statistics. Last year Merida’s sales decreased 2.08% to TWD 22.83 billion (628 million euro). The total number of shipped bicycles and e-bikes dropped by 22.5% to 1.24 million units. Thanks to the ongoing increase of the e-bike’s export share, Taipei Times expects a strong recovery of Merida’s financial position in 2018.
Giant expands e-bike capacity
Next to Merida, also Giant Manufacturing Co reports a sales increase which can be attributed to a significant growth in the e-bike category. According to company reports, January 2018 sales increased by 7.3% to TWD 4.44 billion (122 million euro). Giant’s expanding e-bike sales cannot be attributed completely to its export. Recently Giant Europe General Manager Willem Buitenhuis confirmed to Bike Europe that the company’s facility in Lelystad, the Netherlands “Is stepping up e-bike production substantially to cater for the growing demand in Europe.”