Taiwan and India To Form Alliances for Bike Export to EU

LUDHIANA, India Currently a 17 member delegation with managers from Taiwanese bicycle factories is in India to explore possibilities of forming joint ventures with their Indian counterparts to boost exports in particular to Europe. Main reasons for the visit are escalating production costs in Taiwan and the fact that the Taiwanese bike makers can not use their facilities in China due to the 48.5% anti-dumping duties the European Union imposes on from China imported bicycles.
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LUDHIANA, India – Currently a 17 member delegation with managers from Taiwanese bicycle factories is in India to explore possibilities of forming joint ventures with their Indian counterparts to boost exports in particular to Europe. Main reasons for the visit are escalating production costs in Taiwan and the fact that the Taiwanese bike makers can not use their facilities in China due to the 48.5% anti-dumping duties the European Union imposes on from China imported bicycles. For the Indian bike makers the benefit in forming joint ventures with Taiwan companies is in: “The area of technology and machinery to manufacture high-end bikes, including racing and mountainbikes, and then export to Europe, which is the biggest market," said President Satish Dhanda of the Indian Bicycle Manufacturers’ Association (IBMA).
"If the Taiwanese invest in India, they could take advantage of the fact that there’s no anti-dumping duty on bikes from India imported into Europe. Moreover, the regular import duty of 15% for bikes imported into Europe, is for Indian bikes even lower and stands at 10.5%," Dhanda noted
adding that the Taiwanese could also make use of the cheaper cost of production and the abundance in India of skilled and unskilled labour.
Ying-Ming Yang, who is leading the delegation from Taiwan, said: “We are quite keen on working with Indian bicycle manufacturers to produce bicycles to cater the high end market in Europe and USA,” Taiwan currently produces about five million bicycles worth US$ one billion per annum, catering to almost 70% of the European requirements of high-end bicycles.