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Taiwan Taps Cutting Edge in Global Tuning Parts Market
2007/05/11
Taiwan is playing an increasingly important role in the global motorcycle and tuning parts industry as manufacturers upgrade products and forge closer alliances with overseas brands.
 | | Darihe uses robust production processes and high-quality raw materials to produce highly safe products. |
In 2006, output of motorcycle parts in Taiwan dipped by 7.52% to NT$37.56 billion (US$1.34 billion at US$1:NT$33) from NT$40.6 billion posted in the year before. The drop is attributed partly to consumer belt-tightening following the recent credit/cash card debt problem in Taiwan, and partly to higher oil prices.
Despite the fall in sales, motorcycle parts makers are still optimistic about the future as they upgrade production and R&D capabilities to play a key role in international supply chains.
 | | Darihe provides reliable, high-end tuning parts. |
Taiwan`s competitive edge in designing and developing high-end tuning parts and ATV parts was evident at the 1st Taiwan International Motorcycle Industry Show, held on October 27-29, 2006. The show attracted 150 exhibitors and over 15,000 visitors, including 807 industry buyers from Japan, the U.S., Thailand, China, Germany, Italy, Korea, Malaysia, Hong Kong, and Indonesia. The show will return on May 18-20, 2007, and is expected to attract around 17,000 exhibitors and visitors.
Taiwan`s shift up market in the motorcycle parts industry has helped producers differentiate their products from rivals in China and Southeast Asia. Some producers are even promoting branded products to further enhance added value.
 | | Chian Yie draws on its R&D expertise to boost the value of its products. |
Commitment to Safety
Founded in 1980 in Tainan City, southern Taiwan, Darihe Technology Co., Ltd. manufactures a wide range of professional motorcycle parts, including handles, brake discs, gear discs, front/rear forks, and various tuning parts.
The company adopts a Japanese management style emphasizing product quality and reliability. This approach has enabled the company to steadily fine-tune its motorcycle parts and focus on high-end, durable products, according to Shiao Hui-jung, a senior manager of the company.
 | | Chian Yie sells its NCY-branded products to the global market. |
"We are committed to rider safety," says Shiao. "And this is only possible by demanding the best quality."
Shiao`s company uses only high-quality raw materials, such as stainless steel 420 which boasts 13% Cr and minimal thermal expansion to achieve high durability and performance. The company also uses advanced computer numerically controlled (CNC) machinery and a highly skilled workforce to achieve top quality results.
"We have 28 workers trained to handle the entire production process and solve problems the moment they are discovered," says Fang Shih-je, director of the company`s R&D team. "We adopt the most rigid quality control-destroying five out of 100 finished brake discs to test structure and testing all other products-to ensure the best quality output."
 | | Tai Yeang`s CNC-machine-processed tuning parts have a premium look. |
Darihe Technology sells its tuning parts under the STM brand, which has developed a name for the company in the market. "We can design and produce high-performance tuning parts for different motorcycles, such as Harley-Davidson models," says Fang. The company can supply products on both OEM and ODM basis.
One of the company`s high-performance products is a brake disc suitable for use in muddy environments and delivering a braking force 35% higher than original-equipment (OE) models. Brake discs are processed with black epoxy coating, special indentations for improved heat elimination, and polish for brighter appearance.
 | | Tai Yeang`s high-performance tuning parts are light weight and eye-catching. |
"Although we face intense pressures from low-cost competitors in China and Southeast Asia, we have managed to survive by producing high-end, high-performance tuning parts," Shiao says.
In addition to the domestic market, the company has exported its STM-branded products to the U.S., Europe, and Australia.
Eye on Value
Another upwardly mobile tuning parts maker is Chian Yie Industrial Co., Ltd., which has specialized in high-performance tuning parts since its establishment in 1997 in Tainan County, southern Taiwan.
 | | Chairman Hsueh of Sheng-E is proud of his company`s versatile production capability for tuning parts. |
Chian Yie has three major product lines: braking parts, shock absorbers, and engine parts, including front and rear shock absorbers, multi-cylinder brake calipers, aluminum alloy ventilated brake discs, oil coolers, and other related parts and components.
With years of experience as an OEM producer, Chian Yie has developed extensive expertise in tuning parts, which are the company`s mainstream line. The company is capable of designing and making high-end tuning parts according to different motorcycle and scooter series on an ODM basis. The company has successfully marketed its NCY-branded products both overseas and at home.
 | | Sheng-E`s S.E.E. brand has made a name in the high-performance tuning parts market. |
Chian Yie even has its own motorcycle team, which was founded in 1996, according to Chen Chung-jung, general manager of the company. "Our motorcycle team has helped us market the NCY brand to the global market," Chen says. "The team also helps us to closely observe the performance and functions of newly developed tuning parts in a competition setting, providing a basis for ongoing product improvement."
"Taiwanese makers should take advantages of their R&D strength and work with the island`s computer and electronic industries," Chen indicates. Such cooperation, he says, can help local producers introduce technologically advanced, high-end, high value-added tuning parts.
Chien Yie has spent lots of time and money developing a new engine power supply system in cooperation with professional technicians from other firms. The new product will be unveiled next year and is aimed mainly at the export market. "By combining the technologies of two different industries, we can enhance the value of our product," Chen says.
 | | Ming Chiao`s branding strategy has helped the company to add value to its products. |
To cut costs amid rising metal prices, Chien Yie has adopted a just-in-time (JIT) production system based on small-batch output and minimal inventory.
"We also employ horse power and shock absorber testing machines to guarantee quality and provide value to customers," Chen adds.
Chen says that while Taiwan`s tuning parts market is advancing, a shortage of human resources has slowed industry growth. "The government needs to undertake measures to promote the industry," he says.
 | | Ming Chiao can produce a wide range of tuning parts on an ODM basis. |
Chien Yie plans to present its products at some major trade shows worldwide, including the 2nd Taiwan International Motorcycle Industry Show.
Following Market Demand
Tai Yeang Accessories Co., Ltd. is another example of a Taiwanese tuning parts supplier that has been honing its products. The company has specialized in motorcycle parts and accessories as well as high-performance tuning parts since its establishment decades ago.
Tai Yeang`s product line includes brake discs, tuned cylinders, fan cases, front forks, exhaust pipes, colored pedals, mirrors, handles, shock absorbers, engine valves, and pistons. The company can also custom-make motorcycle and tuning parts based on buyer samples or designs. "We are able to design new tuning parts for every scooter and motorcycle series in the market at better than OE quality," says Ho Chih-cheng, the company`s marketing manager.
Tai Yeang also closely tracks market trends to guide product development. "The market for tuning parts today emphasizes low weight and gas efficiency, so these factors are considered in our development of tuning parts," Ho says.
The company`s pride is a front fork for Yamaha`s Cygnus scooter series, which features a stronger structure with a lighter weight than the OE model. The weight of the OE front fork, with a diameter of 30mm, is 1.788kg. By contrast, the company`s front fork that has a bigger diameter of 33mm weighs only 1.576kg. The front fork is a market-leader, Ho says, and has helped his company build a name among customers.
The company plans to promote a fine-tuned shock absorber that is low priced, light, high performance, compact, and stylish. "We make sure our products meet market demand for both best quality and reasonable prices," Ho adds. "This philosophy has helped us to stay competitive."
The company is aggressively expanding export sales and will attend some major trade shows worldwide, including the 2nd Taiwan International Motorcycle Industry Show.
Rising on Quality
Founded in 1980 in Tainan County, southern Taiwan, Sheng-E Enterprise Development Co., Ltd. is a veteran supplier with a focus on niche markets for cylinders, crank shafts, cam shafts, valves, pistons, piston pins, chains, connecting rods, and other tuning parts.
Sheng-E is proud of its ample production capacity, having several manufacturing plants equipped with advanced machinery and automated warehouse equipment. Its S.E.E brand has earned a good reputation among customers, the company claims.
Sheng-E is ISO-9001 certified and its products are protected under numerous international patents. The company is devoted to making high-quality fine-tuning motorcycle parts, says King Hsueh, president of the company. "We can produce crank shafts with improved torque, or cylinders with oil saving and high horse power designs for motorcycle engine displacements of 750cc and below, and 50-100cc scooters." The company`s high performance tuning parts has attracted attention from quite a few foreign buyers, Hsueh says.
The company`s manufacturing plant at the Southern Taiwan Science Park produces about 20,000 ceramic cylinders a year. "In Japan, Europe and the U.S., manufacturers use only ceramic cylinders in their engines because they admit less air and reduce noise pollution," Hsueh says. "In Taiwan, ceramic cylinders now account for over 40% of the cylinder market, and they are the mainstream cylinder type among such leading motorcycle brands as SYM, KYMCO, and Suzuki."
Sheng-E plans to introduce large-capacity ceramic cylinders, including a 500cc model for ATVs and a 1,300cc model for Harley-Davidson motorcycles. Hsueh says that the company`s ceramic cylinders have won big orders from Japanese producers of mowers and turbo mute air compressors. The company`s S.E.E-branded products have helped the company to win a niche in global markets, especially in Japan, Europe and the U.S.
Chien Yie is also developing aircraft engines, Hsueh says. "This has forced us to continually update our manufacturing technologies."
On another front, Hsueh, who is the chairman of Taiwan Powered Two-wheeler (PTW) Association, is thinking about organizing an annual motorcycle race in Taiwan to encourage more local tuning parts makers to join this market. "This will help Taiwanese makers to develop new products and observe them in action. It will also help raise the public profile in this line," he says.
Branding and Marketing
Founded in 1993 in Tainan County, southern Taiwan, Ming Chiao International Co., Ltd. is an experienced and versatile maker of motorcycle parts.
Ming Chiao started with manufacturing cylinders and motorcycle accessories on an OEM basis. Now the company produces a wide variety of motorcycle parts, including cylinders, valves, crankshafts, sheaves, chains, clutch assemblies, brake assemblies, front forks, exhaust pipes, and related accessories.
The company has also steadily developed a reputation in the tuning parts field, according to Tsai Hong-chun, CEO of the company. "We have been developing in this line since 1995, when scooter tuning parts began growing in popularity in Southeast Asia."
Ming Chiao supplies water-cooled and high-performance tuning part sets that can be used on KYMCO, SYM, Yamaha, and Suzuki scooters. The company plans to debut a new tuning part set that can enhance engine horse power by 33%. The company can also supply parts on an ODM basis, allowing customers to order tuning parts with special specifications and different exhaust emissions.
Tsai says that strong competitive pressure from manufacturers in China and Southeast Asia has forced his company to revise its operations. "We reorganized the company, diversified product lines, and forged closer cooperation ties with other local suppliers to build a sound supply chain in the line."
However, the most essential move the company has taken is branding its products. "Branding is imperative, I think, because Taiwanese motorcycle parts makers are able to produce high-end, high-performance parts and should find a way to market such products themselves," Tsai indicates. At the moment, Ming Chiao`s RUIMA-branded products have developed a niche in the international turning parts market.
"Stylish design, high performance, and multiple functions are increasingly demanded in the tuning parts market," Tsai says. "Taiwanese suppliers that market branded products incorporating these qualities can easily differentiate themselves from competitors in China and Southeast Asia."
Tsai also suggests that Taiwanese suppliers jointly organize races and other recreational events to promote their products. "Developing parts used for racing motorcycles is a good way for makers to refine their products and develop new niche markets," he says. "Recreational activities, such as motorcycle races, can help Taiwanese makers to recruit employees and attract investors to the line."
(by Steve Chuang)
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