Stylish Electric Bikes, Foldable Bikes and Carbon Fiber Technology Seen Helping Drive Future Growth among New Awareness of Cycling Around the World

TAIPEI, TAIWAN, March 23, 2011 – Exports of Taiwan’s bicycles grew 20 percent in 2010 after a nearly 10 percent fall in 2009 as the island’s suppliers shipped more bikes in a recovering global economy.

The value of Taiwan’s bicycle exports rose to US$1.5 billion in 2010 from US$1.25 billion in 2009. Shipments totaled 5 million units in 2010, compared with 4.3 million units shipped in 2009, paced by stronger demand from the European and Latin American markets, according to data from the Taiwan Bicycle Exporters’ Association (TBEA).

The average selling price rose by 2 percent to US$296.39 in 2010 after local bicycle companies moved up the tech ladder to sell more value-added vehicles, based on the data released earlier this month.

In December alone, Taiwan’s bicycle exports grew 36 percent from a year earlier to US$160 million, marking their highest annual growth rate in six months. The annual rate has been growing since March last year.

“It was a very good year last year because market conditions improved,” TBEA President Tony Lo said. “For this year, we remain cautiously optimistic,” said Lo, who is also chief executive of Giant Manufacturing, the world’s biggest bike brand.

For the whole 2010, Europe was the largest export destination of Taiwan’s bicycles, followed by the United States. The two markets made up a combined 74 percent of Taiwan’s total bicycle exports last year.

By countries, the strongest growth was in Irland and Lithuania. Taiwan’s bicycle exports to Irland and Lithuania surged 294 percent and 263 percent, respectively, in 2010. Exports to Italy rose 52 percent and those to Brazil and the UK each gained 51 percent and 48 percent in the same period. In Latin America, exports to chile grew 89 percent and exports to Argentina were up 42 percent.

The stellar growth bodes well for the business of Taiwan’s major bike brands including Giant Manufacturing Co., Merida Industry Co., Pacific Cycles this year as they are selling a new generation of bikes to tap growing demand.

“Innovation will be a key factor to our success in the future and we have seen a global campaign about energy saving and carbon reduction,” Lo said.

There is a new awareness of cycling globally. Electric bikes, light-weight carbon fiber frames and other non-polluting vehicles are gaining popularity if last week’s Taipei International Cycle Show was a guide.

“E-bike is one clear trend that can’t be overlooked and carbon fiber will still be the mainstream technology in the next three to five years,” William Jeng, a senior vice president at Merida’s marketing affairs department, said at the firm’s booth where it showcased a new line of innovative, energy-saving bikes.

Giant, Merida and a group of other bike-related companies from 36 countries around the world displayed their latest designs and products at the Asia’s biggest bicycle show on March 16-19. Taiwanese makers unveiled a total of 44 products, many of them have won the Taiwan Excellence Awards and the iF Design Awards.

Taiwan has been a powerhouse of personal computers but it has also seen a growing number of companies create their own brands in the bicycle industry.

Taiwan has a well developed industry infrastructure that supplies a wide array of finished road and mountain bikes, components and other accessories including helmets, gloves, lights and tires. For example, Taiwan’s Maxxis International and Kenda are global brands that provide high-quality tires for bikes as well as motorcycles and automobile.