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Revving Up for Motorcycle Taiwan 2007
2007/05/10

The much-anticipated Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2007) will roll into Taipei from May 18 to 20, bringing together exhibitors and buyers throughout the motorcycle industry. Entering its second year, the show is anticipated to outsize the successful 2006 event.

Motorcycle Taiwan 2007 is expected to draw a strong turnout of global exhibitors and buyers.


According to show organizer Taiwan External Trade Development Council (TAITRA), Motorcycle Taiwan 2006 drew 150 exhibitors and some 15,000 visitors for a highly successful maiden voyage. The 2007 event will be joined by 165 local and foreign exhibitors at the same location, the Taipei World Trade Center (TWTC) Exhibition Hall 3, and feature around 400 booths displaying new, high-quality, and innovative products.

"No matter how you look at it, the first event was a big success," says Mario Tsai, manger of the exhibition section 1 under TAITRA`s Exhibition Department. "The exhibitor turnout was strong with around 1,000 key global buyers attending, mainly from Japan, the U.S., Thailand, mainland China, Germany, Hong Kong, Malaysia, Indonesia, Italy and South Korea. We anticipate an even bigger and more international show in 2007 with a more comprehensive range of products and more buyers."

Major exhibition themes at Motorcycle Taiwan 2007 will include complete vehicles (motorcycles, scooters, ATVs, electric scooters, and electric bicycles), engine and parts, vehicle frames, accessories, riding accessories, vehicle testing and inspection equipment, and noise and emissions testing equipment.

Big Names

An impressive list of buyers from several leading companies visited the 2006 show and they are expected to come in 2007 as well. Among them are BMW Motorrad, Magura Gustav Magenwirth, Johnnes J., Matthies, Berhn Motrradtechnik, and Reichenbach of Germany; Polaris, Buell, Embo International, Unison Motorsports, and K&L Supply of the U.S.; Malaguti and Verlicchi Nono of Italy; Yamaha, Daytona, and Kitaco of Japan; Bajaj of India; and many others such as Rodi T.R. SL (a leading Spanish importer of motorcycle accessories and tire products), Uttara Group of Bangladesh, and Paul Feeney, a major Australian importer.

According to TAITRA, the main draw of Motorcycle Taiwan is its position as the go-to place for all the top names in Taiwan`s motorcycle industry. The show has also helped to confirm Taiwan`s reputation as a supplier of top quality and competitively priced motorcycle products.

International Forum

Due to a strong turnout at last year`s fair, TAITRA says it decided to further expand the seminar activities at the 2007 show.

During this year`s industry seminars, key motorcycle industry figures will share their insights on a variety of issues. There will, for example, be a "Motorcycle Design" seminar given by Gerald Kiska, CEO of Kiska Design; "How to Become Suppliers to Major American ATV Manufacturers," by Chuck Crone, purchasing director of Polaris; "The Motorcycle Market in Europe," by Jacques Compagne, secretary general of the Association of European Motorcycle Manufacturers; and "Global Opportunities for Taiwan`s Motorcycle Industry," by George Lin, president of the Taiwan Golden Bee Co.

Taiwan has become a global production citadel of high-level ATVs.


TAITRA says that Motorcycle Taiwan has four major aims, including showcasing the capability of Taiwan-made motorcycle products, motorcycle designs and innovations, ATV trends, and tuning and performance enhancing parts.

Signs of Growth

Tsai sees many positive signs in the local motorcycle industry, indicating that Taiwan is becoming a vital development and manufacturing base for high-level PTWs and ATVs.

"Taiwan`s declining domestic PTW sales volume (currently about 700,000 units per year, dropping from the previous peak of about one million) has driven local vehicle and parts makers to more aggressively develop international sales," he explains. "The export volume of Taiwan-made PTWs and ATVs outstripped domestic sales for the first time in 2004. High gas prices are also making motorcycles more attractive than cars for many buyers."

More importantly, Tsai says, many major vehicle and engine makers in Taiwan have been developing large-displacement engines (up to 700cc). These engines are used in utility vehicles (UTVs), powerful ATVs, and golf carts, as well as in traditional scooters and motorcycles. At the same time, the motorcycle industry is developing products not only for transportation, but also for utility, agricultural, and recreational uses.

According to Tsai, another positive trend for Taiwan makers of PTWs, ATVs, and related products is that global motorcycle demand is expected to grow to about 40.9 million units by 2009, up from about 32.9 million in 2003.

A growing number of Taiwanese motorcycle brands, such as KYMCO (Kwang Yang Motor Co., Ltd.), SYM (Sanyang Industry Co., Ltd.), TGB (Taiwan Golden Bee), and Adly (Her Chee Industrial Co., Ltd.), are building their international presence. Their rise has also fueled sales of aftermarket (AM) replacement parts, performance-tuning parts, and accessories.

Solid Background

Seeking to escape the downward spiral from price competition with low-cost rivals in especially mainland China, most local PTW and ATV makers are turning their attention to developing competitive advantages and tapping niche markets with more diversified product lines. Such specialization is also helping local producers distinguish their products from the lower-end items turned out by mainland China and other developing nations.

With the strong support of a well-established central-satellite plant system, Taiwan`s PTW line now has a 95%-plus local content. Such high rate of locally produced parts has been not only fueling the overall motorcycle industry development in Taiwan, but also making the island a key exporter of PTW parts and accessories.

As the domestic PTW market matures, almost all local PTW makers and parts suppliers have been aggressively expanding export sales. The export volume of complete PTWs, including both completely build-up (CBU) and completely knock-down (CKD) units, outstripped total domestic sales in 2004, when exports reached 840,409 units, compared with 772,814 for local sales.

Currently, Taiwan has become the most important production base of under-150cc scooters for many international brands such as Yamaha and Suzuki. The island`s global competitiveness is rapidly being upgraded as a group of assembled-PTW makers have been trying to launch large displacement vehicles ranging from 250cc to over 500cc.

Strengthening Global Competitiveness

Walter Yeh, TAITRA`s executive vice-president, points out that "We have been witnessing the continually-strengthening global competitiveness of Taiwan`s motorcycle industry, which has established many internationally-reputable brands, such as KYMCO, SYM, TGB, and the tire-maker Maxxis."

"We are also seeing the fruition of the global-deployment plans adopted by the Taiwan makers of assembled-motorcycles and parts, who have set up operations in China, Vietnam, Indonesia, and Europe, showing not only dedication but also the effectiveness of vertical and horizontal integration. We anticipate an even brighter future for the Taiwan motorcycle sector in the international market with its solidly-established safety, reliability, trustworthiness, and after-sales services," Yeh adds.

High-quality PTWs made in Taiwan are expected to win a growing share of the global market.


``After observing for years how the Japanese motorcycle makers have caught up with the major rivals in the west to prevail as some of the finest bike brands," says George Lin, president of Taiwan Golden Bee Co. (TGB), "I find that no other country is better positioned like Taiwan to develop motorbikes."

Taiwan has so many unmatched advantages going for it in terms of motorcycle development, Lin stresses, including comprehensive central-satellite plant systems, strong R&D capability, and a mature industrial infrastructure supported by other key industries such as electronics, precision manufacturing and processing. "Japan is a good example for Taiwan. Motorcycle makers there stayed competitive, despite increasing production costs, by leading in the upper-end and larger-displacement segment with innovative designs, development and cost-control abilities, and by introducing upmarket and high-quality products that their rivals in Europe and the U.S. were not producing."

"Every performance part for motorbikes has a profitable future for Taiwan companies, including everything from tires to detailing parts," claims Wu Shih-hsiung, general manager of Tong Yah Electronic Technology Co., Ltd. (KOSO brand), a major motorcycle performance-tuning parts maker in Taiwan.

"The only course ahead for the local motorcycle-parts manufacturers is to the performance-tuning sector," Wu says. "Taiwan motorcycle-parts makers enjoyed smooth sailing for a long time due to their considerable price advantage relative to Japan-made counterparts, but no longer due to reckless underselling by rivals in China."

"Now in the international motorcycle tuning-parts market," Wu points out, "Japan, Italy and Taiwan are the top three supplier countries, but the hope is to upgrade our position in the next few years through government and industry partnerships."

Eye-catching Exhibitors

A wide array of high-quality, innovative products will be on show at the upcoming Motorcycle Taiwan 2007, with some major exhibitors arranging sizable booths to showcase their latest items.

TGB

One of the major exhibitors at the Motorcycle Taiwan 2007 will be Taiwan Golden Bee Co. (TGB), a specialized maker of motor scooters and ATVs, as well as the first and largest maker of continuously variable transmission (CVT) systems and parts in Taiwan.

TGB is going to show its latest high-end products at the show, including several sport and utility ATV models with engine displacements of 250cc, 300cc, and 425cc. A scheduled model with a 500cc engine could also join the list. Another focus of the company`s high-quality products will be a brand-new top-end 250cc scooter model, in addition to the company`s long popular scooter series, such as the R50X, 303R, and Delivery.

Tong Yah Technology Co.

Tong Yah Technology Co. was established in 1981 and has developed into an experienced specialist in the design, development, and manufacturing of high-end parts and accessories for motorcycles and motor scooters. In recent years it has been concentrating on the development of high-tech products, especially electronic meters for scooters and all-terrain vehicles. The results include digital liquid crystal display (LCD) speedometers, performance exhaust systems, magnesium-alloy wheel rims, heater grips, auto-folding side mirrors (for both cars and motorcycles), and state-of-the-art design accessories.

Tier-one to International Motorcycle Brands

Nan Hoang Traffic Instrument Co., Ltd. is the largest supplier of friction-related products in Taiwan. Established in 1961, the company has developed more than 5,000 models of brake pads, discs, shoes, and clutch plates. The company makes all of the materials it uses, including asbestos, carbon, sintered bronze, other sintered metals, semi-metallic cork, and friction paper.

The company plans to display all of its quality friction parts at the 2007 show, including the sintered-bronze brake pads that have been gaining increasing popularity on big-bore, high-end motorcycle and scooter models in recent years.

Custom-tuning ATVs

Unilli Motor Co., Ltd., a specialized maker of ATVs with strong custom-tuning capability, will display all of its sport, utility, and recreation ATV models with engine displacements of 50cc, 90cc, 150cc, and 250cc, at the fair.

All of Unilli`s ATVs are manufactured to meet the 92/61/EEC homologation in Europe or ANSI/SVIA-1-2001 regulation in the U.S., making them not only powerful and functional, but also safe and reliable vehicles under various road conditions.

Asia United Manufacturing Co.

During its more than 30 years in the transportation vehicle business, Asia United has grown into one of Taiwan`s biggest motorcycle parts and accessories manufacturing and trading companies. Asia United boasts that it can help customers from all over the world source almost any kind of parts and accessories for new motorcycle models.

Tung Pei Industrial Co., Ltd.

Established in 1966, Tung Pei Industrial Co., Ltd. cooperates with NTN Corp. of Japan to produce ball and roller bearings in Taiwan. The company`s major product categories include ball bearings and needle bearings for motorcycles, autos, machinery, and home-appliance applications. Tung Pei is the largest maker of ball and roller bearings in Taiwan and exports its products to major markets in the U.S., Europe, Asia, and Latin America. In Taiwan, Tung Pei supplies 70% of the bearings used by the local OEM motorcycle market.

Hebe

Already a major auto-accessory maker with strong development and innovation capabilities, Hebe Co., Ltd. has been diversifying its product lines into accessories for motorcycles, scooters, and ATVs. The company now focuses exclusively on high-end innovative items.

Export Destinations of Taiwan-made Motorcycles

(Jan. - Oct. 2006)

Unit: Vehicles

Rank

Country

October

2006

Share

Growth

Jan.-Oct.

2006

Share

Growth

1

Japan

8,509

25.48%

23.68%

125,284

28.57%

25.13%

2

USA

3,293

9.86%

-37.05%

39,102

8.92%

-14.16%

3

Italy

706

2.11%

-55.68%

31,065

7.08%

-15.60%

4

Spain

2,627

7.87%

-21.84%

30,772

7.02%

-7.51%

5

Belgium

2,502

7.49%

35.54%

26,331

6.00%

11.96%

6

Nigeria

3,053

9.14%

-33.77%

18,946

4.32%

-44.46%

7

Germany

1,273

3.81%

191.30%

16,850

3.84%

-16.32%

8

Canada

376

1.13%

-30.37%

14,814

3.38%

67.01%

9

Denmark

562

1.68%

198.94%

11,997

2.74%

20.72%

10

South Korea

1,389

4.16%

46.83%

10,416

2.38%

100.50%

11

Australia

1,368

4.10%

16.33%

9,861

2.25%

69.61%

12

Hong Kong

1,176

3.52%

26.86%

9,575

2.18%

-7.26%

13

Malaysia

0

0.00%

-100.00%

9,296

2.12%

-58.68%

14

Israel

306

0.92%

-69.94%

7,020

1.60%

15.92%

15

U.K.

396

1.19%

-51.35%

6,937

1.58%

-7.72%

16

Turkey

0

0.00%

-100.00%

6,283

1.43%

-23.87%

17

Greece

238

0.71%

60.81%

5,798

1.32%

-20.74%

18

Netherlands

414

1.24%

59.85%

4,977

1.14%

-10.31%

19

France

770

2.31%

301.04%

4,957

1.13%

18.82%

20

Sweden

0

0.00%

100.00%

3,848

0.88%

6.83%

Others

4,435

13.28%

47.93%

44,364

10.12%

0.55%

Total

33,393

100.00%

-12.20%

438,493

100.00%

-0.96%

SourcesThe Customs Import/Export Statistics (CCC Code:8711), TTVMA.






(by Quincy Liang)
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 Related Supplier List:
TAIWAN GOLDEN BEE CO., LTD.
UNILLI MOTOR CO., LTD.
NAN HOANG TRAFFIC INSTRUMENT CO., LTD.
TUNG PEI INDUSTRIAL CO., LTD.
HEBE COMPANY LTD.
TONG YAH ELECTRONIC TECHNOLOGY CO., LTD.
 
 
 
 
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