Production Is Relocated on Massive Scale
TAIPEI, Taiwan – What last week’s 2019 Taipei Cycle Show also clearly underlined is that the production of bicycles, e-bikes and bike parts and products is changing drastically and on a massive scale. Producers like Giant repatriating a part of its production to Taiwan from China, receive financial support from the Taiwan government. Also Vietnam is frequently mentioned as to where companies are relocating their production which is triggered by EU dumping actions and U.S. tariffs on China made e-bikes and other products.
Production relocation was the other much discussed topic at this year’s Taipei Cycle. Even during Taipei Cycle’s opening ceremony it was a subject that two of the four official speakers referred to. They were proud to be able to say ‘welcome back’ to Taiwanese companies that choose to produce again in their home country.
Giant, Tektro and TranzX
At the opening ceremony Mr Tseng Wen Sheng, Deputy Minister, Ministry of Economic Affairs, said, “Giant Bicycles is repatriating some of its production to Taiwan from China, supported by the Ministry of Economic Affairs.” Next to Giant also Tektro and TranzX are switching production (partly) back to Taiwan. And there are very probably more companies that will or are doing the same.
Merida and SR Suntour to Vietnam
What the 2019 Taipei Cycle Show underlined is that the production of bicycles, e-bikes and bike products is changing drastically and on a massive scale. China is losing its place as one of the most important production centers. Next to repatriating to Taiwan increasing numbers of Taiwanese bicycle companies are relocating their production back from China to Vietnam. Merida and SR Suntour are the bigger names (partly) switching to Vietnam with smaller others like Composite Gear are following.