Credit Suisse Expects Continued Decline of Taiwan Bicycle Export
TAIPEI, Taiwan – In the first 8 months of 2016 Taiwan’s bicycle and e-bike export dropped by 25.6% compared to the same period in 2015. According to Credit Suisse Group AG export volumes will continue to diminish in 2017; in particular to China. Bicycle shipments from Taiwan to Europe and North America are forecasted to stabilize next year.
According to Credit Suisse Group AG analyst Jeremy Chen, “Taiwan’s bicycle makers might see their shipments decrease by 10% in next quarter.” Credit Suisse kept the rating of the country’s major bicycle manufacturers Giant and Merida at ‘under-performing’. Both reported declines in accumulated sales in the first nine months of the year.
High inventory levels
Main reason for the further decline of Taiwan’s export would be the weak global demand for low to mid-end bicycles. But especially the weak Chinese market is a, “Key factor that needs to be monitored closely as inventory levels have remained higher than expected.” The study of Credit Suisse was published by the Taipei Times this week.
Giant Manufacturing Co has seen its sales drop by 5.7% to TWD 44.23 billion (1.27 billion euro) this year the company reported, while Merida’s sales dropped 19.9% to TWD 17.4 billion (499 million euro). In the first half of this year, Giant’s and Merida’s overall shipments in volume declined 22% and 30% respectively from a year earlier, reports Credit Suisse.
E-bike sales contribution
The Taiwan Bicycle Association reported that e-bikes are reaching a substantial level in the country’s export, as Bike Europe published. In the first eight months of 2016 the export total of e-bikes stood at close to 93,000 units; up 105% compared to the 45,000 exported in 2015. For Credit Suisse these figures are not convincing as, “The sales contribution from e-bikes is still minimal.”