Taiwan Export Drops Hard; Component Makers Suffer
AMSTERDAM, The Netherlands – Taiwan’s bicycle export to the European Union dropped hard in the first half of 2013; with 19.1%, is reported by sources from the country. With that a sense of an impending crisis is going around on the island as component makers suffer in particular.
At Eurobike industry insiders already pointed to the current situation at lots of component makers. They estimate that their OEM shipments dropped by over 20% as bicycle production in many European countries as well as in Taiwan have been adjusted downwards while also Taiwan’s export to Europe dropped big time.
Sluggish and dropping sales
That bike production is dropping in Europe is caused by sluggish and dropping sales. Domestic deliveries of new bikes through June 2013 were approximately 7% lower than the same period in 2012 on Europe’s biggest market Germany.
In Holland the situation is alike or worse with IBD sales expected to drop close to 10% this year. Revenues at dealer level are not affected that hard as their high priced e-bike sales is still relatively high.
When looking at Taiwan’s bike export to EU countries as an indicator on how business is developing per country, then the export stats of the country show that export to England were up with 10.5%. Export to all other EU countries dropped with France as a major market showing the biggest over 55% drop. Export to Germany was down 19.2% and to the Netherlands 23.0%. To Italy, Spain and Greece export from Taiwan dropped by even bigger numbers.
Sources in Taiwan report that the total world bike export from the island dropped 11.1% in volume and 1.9% in value during the first half of 2013.