Steady Growth in E-Bike Sales at Merida and Giant
TAICHUNG, TAIWAN – Both Giant Manufacturing Co. and Merida Industry Co. report a steady growth of e-bikes sales during the second quarter of the year. The e-bike is becoming increasingly important for Taiwan’s largest bicycle manufacturers.
Last May a Giant spokesman already announced that the company expected, “a continuously robust demand for electric bikes on the European market.”
Thanks to rising average selling prices and increased shipments of electric bicycles, Merida reported a revenue growth of 7.57 percent to TWD 2.53 billion (72.6 million euro) last month compared with June 2018. A Merida spokesperson told the Taipei Times last week that, “The increase was mainly due to a higher average selling price per bicycle which was the result of a rise in shipments of e-bikes. Merida’s total revenue in the first half of this year increased by 1.91 percent to TWD 13.08 billion (375 million euro).”
These results do not come as a surprised. Last May Bike Europe already reported on the Merida results, “Our revenue for Q1 will reach a record high, while we expect a steady growth in our electric bike sales this year.” According to the latest report Merida shipped 19,790 electric bikes last June on a total of 93,700 in the first half of 2019. Between January and March e-bikes made up 18.7 percent of total sales. This increased to 21.17 percent for the first half of the year.
Total shipments dropped
As a side effect of growing e-bike sales, Merida also reports a decline in the production and shipments of traditional bicycles. The total shipment of e-bikes and traditional bicycles combined dropped by 15.55 percent to 501,644 units in the first six months of 2019 compared with the same period of 2018. In the first half of 2019, the average selling price increases to TWD 26,082 (748 euro) per unit compared with TWD 23,503 (661 euro) in 2018.
Giant reintroduces Cadex
Giant Manufacturing Co. reported last week an increase in revenue of 5.24 percent to TWD 30.68 billion (880 million euro) for the first half of 2019. The bicycle manufacturer saw a steady demand in Europe, the US and China, as well as solid growth in electric bike sales in Germany and France.
Early July, Giant reintroduced the brand name Cadex. Decades ago Giant pioneered under this brand name with carbon road racers. “Now Cadex has been reimagined as a new category of cutting-edge components,” as the company describes the reintroduction. The debut lineup of Cadex components includes wheel systems, saddles and tyres. These new components are available for aftermarket in Europe starting next spring (2020) and will also be specified on a limited number of premium 2020 Giant and Liv bike models.