Ongoing Strong Demand for Giant and Merida E-Bikes
TAICHUNG, Taiwan – Taiwan’s largest bicycle makers are reporting rising e-bike sales in the first quarter of this year. Giant Manufacturing Co. and Merida Industry Co. both saw increasing orders for high-end bicycles and electric bikes.
“Our revenue for last month will reach a record high after we solved a material shortage problem early, while we expect a steady growth in our electric bike sales this year,” Merida Industry Co. stated in the Taipei Times yesterday. “Since March we been receiving steady supplies again from European and Japanese components makers. Due to the material shortage our revenue in the first quarter compared with last year decreased by 3.25 percent to TWD 5.58 billion (161 million euro). While our order completion rate this year averaged between 90 to 95 percent, we completed all orders last April.”
In 2018 Merida shipped 143,800 e-bikes, up more than 50 percent from 93,500 in 2017, as Bike Europe reported last March. The company’s 2018 revenue grew 15.5 percent to TWD 25.8 billion (741 million euro). The e-bike’s contribution increased by 7 percent to TWD 6.37 billion (184 million) in 2018.
‘Continuously robust demand for e-bikes’
The Taipei Times also reports that Giant Manufacturing Co expects a single-digit growth percentage in revenue this year, compared with a 9.11 percent increase last year. Giant aims to sell 600,000 electric bikes this year, up from 500,000 last year. A company spokesman said that “we expect a continuously robust demand for electric bikes on the European market.”
Production move back to Taiwan
Amid a lingering US-China trade dispute and the European Commission’s anti-dumping duties on e-bikes made in China, Giant has moved part of its production of high-end bikes back to Taiwan. Also new production lines in Taichung in combination with and a new research-and-development facility in the Taichung Science Park are to be completed by the end of this year. An automated logistics center in Taichung is expected to start operations next year.