Volume 22, nr. 6-7 June/July 2018
Trade Journal for the Bicycle, E-Bike & Scooter Market
Taiwan and Vietnam Warming E-Bike Export Up
MARKET REPORTS EUROPEAN UNION, GERMANY, AUSTRIA
P.14-17
EBMA’s Moreno Fioravanti:
‘We Applaud Decision to Review Anti-Dumping On Regular Bicycles’ GIANT CHINA SUBSIDISED
P. 11
SHOW REVIEW CHINA CYCLE
P. 18-19
INTERVIEW
P. 9
Sales in all major West European markets show remarkable 2017 growth confirming that:
E-Bikes Turning into Europe-Wide Major Trend DOETINCHEM, the Netherlands – It’s now perfectly clear. The growth in e-bike sales which in particular has taken place in the Netherlands and Germany is being followed-up in all EU markets.
E
specially the most important West European markets for bicycles show a rapid growth in e-bike sales. Next to France also Italy and the UK underline that electric
Find THUN at
EURO BIKE
2018
(booth no. A2-109)
bikes are turning into a major Europe-wide trend. Italy’s industry association ANCMA has presented its market statistics for 2017 while Bike Europe studied sales in the United Kingdom. The result is that in both countries a strong growth in e-bike sales took place. The rise is not as big as in France where 2017 sales, stimulated through a government subsidy on the purchasing price of an e-bike, recorded a 90% plus. But still, the e-bike markets of Italy and the UK scored double-digit growth figures. According to ANCMA some 148,000 e-bikes
all the brands all the dates all the info
were sold in Italy in 2017. This stands for a 19% increase on the sales total for 2016. Like in Germany and Austria, where earlier reports on 2017 sales indicated that e-MTBs are an outright sales hit, also in Italy this e-bike category is, says ANCMA, “the undisputed market leading segment.� 65% of all the close to 150,000 e-bikes sold in Italy were e-MTBs. But it’s noted by ANCMA that the e-Road segment of the e-bike market could be heading for a fine future. As for the UK; e-bikes have been the star of the sector. As for indications on sales, import figures are used which per 1 January 2017 are tracked
The Glob Plat al form
July 8—10, 2018
by the new CN codes for e-bikes as well as speed pedelecs, like in all EU member states. This means inflated figures for UK’s e-bike sales seem to be a thing of the past. UK customs figures of 2017 e-bike imports reports a total arrival of around 62,500 units. This is good news for the industry as guestimates for 2016 before the arrival of the new more accurate CN code gave an upper figure of 50,000 e-bikes. So by combining the two import figures the year on year market growth in the UK accounts for around 20% from 2016 to 2017. At the upcoming Eurobike e-bikes are expected to dominate the show.
X-CELL RT 2.0 THUN’s new torque sensor for pedelecs and e-bikes
The Global Platform
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BIKE europe June 2018
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BUSINESS Jan-Willem van Schaik Editor in chief
Digitalisation
Existing 48.5% anti-dumping rate on regular bicycles imported from China will stay in place during 9 month expiry review period. The European Commission announced the expiry review of the anti-dumping measures applicable to imports of bicycles originating in the People’s Republic of China. These measures are in place for 25 years. If the Commission agrees in March 2019 to an extension, the measures will stay in place for another five years. The review investigation conPhoto: Susanne Brusch ducted by the European Commission will be different compared to its previous ones because the rules on dumping proceedings have changed.
Big Growth in Regular Bicycle Imports from China in 2017 BRUSSELS, Belgium - Is it state subsidies or “significant distortions” leading to benefits for, for instance, prices for aluminium? Have such state subsidies offered by the Chinese government made it possible for, despite the 48.5% anti-dumping duty next to an import tax of 14%, the import of regular bicycles from China to grow significantly in 2017?
T
hat big growth in the import of regular bicycles from China is evidenced by the latest Eurostat figures. They show a sudden big growth. After years of hovering between 350,000 to 400,000 units suddenly the import of regular bicycles from China climbed
to 635,000 units. It means that in 2017 this import increased by a big 54%. This must surely have raised some eyebrows of stakeholders inside the EU industry. And probably also more than that viewing the “Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of bicycles originating in the People’s Republic of China.” Also some very interesting developments come to light when looking at the countries of origin of the imported conventional bicycles. Like the fact that Cambodia is now EU’s biggest bicycle supplier. It has overthrown Taiwan from that number one position which the island off the coast of China has taken up for over 20 years. In 2017 1.3 million bicycles were imported from Taiwan; down a big 16% on the 2016 total. Cambodia is now EU’s biggest supplying bicycle country with an EU import from that country standing at more than 1.4 million units in 2017. “Also Chinese bike-sharing com-
panies, most importantly the two largest players Ofo and Mobike, started in 2017 to aggressively expand their bike-sharing business with a renewed increase of exports of dumped Chinese-made bicycles to many European cities,” said Moreno Fioravanti, secretary general of the European Bicycle Manufacturers Association (EBMA) which lodged a request with the European Commission in early March 2018 to extend EU anti-dumping measures on conventional bicycles from China. “Because of their negative impact on both bicycle demand and city environments, low quality Chinese bikesharing bicycles in the EU represent a major threat to both the EU bicycle industry and EU cities. In China, the massive oversupply of the market with bike-sharing bikes, over 20 million bicycles in less than a year, led to a huge drop of more than 50% in bicycle and e-bike production and sales!”
Ongoing debates on production relocation close to the market have entered a new phase. The announcement of the European Union to make imports of ebikes originating in the People’s Republic of China subject to registration as part of the dumping investigation made the provisional dumping duties almost inevitable. And the Chinese e-bike industry is preparing for this new situation. Portugal, Poland, Romania and Bulgaria were mentioned frequently during the China Cycle Show as their future ebike production location. Whether this can be done in a traditional way is the question; demand for e-bikes in European countries is increasing quickly. Digitalisation of company processes and manufacturing in particular makes it possible to produce faster; to produce more and customised products. That’s what the online shopping consumer is asking. At the Bike Europe Conference, Siemens will explain that digitalisation brings ideas and processes together to form a unified digital enterprise. The transformation of the industry to step up e-bike production volumes in Europe to meet growing demand should accelerate this new tech adoption. Transforming data into value and to use it through software in all operating processes is one of the key topics which will be addressed at the Bike Europe Conference 2018. This annual industry event is scheduled for 7 July in Friedrichshafen, one day before the start of Eurobike. Hope to see you all on 7 July! janwillemvanschaik@vakmedianet.nl
4
June 2018 BIKE europe
FINANCIAL Imposing US tariffs on steel and aluminium is one of many hurdles:
Political Turbulences Lead to Stock Market Downturn MUNICH, Germany – Several downturns have already harmed the international stock market development before the month of May. Moreover, next to the US president’s regular tweets which send the stock market on a roller coaster course, it has definitely been the current economic and political crisis in Italy putting serious pressure on last month’s market development. Jo Beckendorff
W
hile pessimists forecast that Italian debts could even lead to the end of the Euro currency, optimists say that the EU is too big to fail, they will fix the Italian crisis just as they are working on fixing the Greek crisis. In other words: it won’t fail but it will cost, and therefore it puts pressure on the EU market. Besides several international hurdles, there are also ones within the EU market. Brexit is a real issue. Furthermore, members pulling out would be a nightmare. The fact is that the stock market hates uncertainty, as frequently heard. But this is exactly what’s going on right now. Nevertheless, with an eye on our bike stock
market it’s with no doubt the US president’s “open tweet thoughts” on imposing taxes on steel (25%) and aluminium (10%) putting pressure on chart members. While increasing oil prices is another issue that has popped up. This all led to a May chart development sending 14 of all in all 22 members downwards. Four of these 14 decreasing in share values. Indian Atlas Cycles, CSG’s Canadian parent company Dorel, Taiwan’s Giant and Chinese Shanghai Phoenix, even reached their 52-week lows. Sun Race Sturmey-Archer (minus 33.1%), Dorel (minus 25.2%) and Giant (minus 13.9%) reported the largest two-digit share value drops. Keeping an eye on Sun Race Sturmey-Archer, there is no need to be alarmed, since last year these shares increased through the roof and it seems that these shares are now shifting back downward. Let’s have a final look at those eight chart members that were able to ride through turbulent May with share value increases. There’s only one, Fox Factory, with a two-digit share value increase (13.1%). Its latest first quarter sales and profit records are also rooted in increasing bicycle product sales (plus 10.3%). But the largest stake is made with suspension products for motorized off-road vehicles (plus 33.5%). This segment is currently benefitting from a field that these days is increasing worldwide: military expenses. And in the case of Fox, its suspension products for military off-road vehicles.
The Bike Industry Stock Chart Company Name
Rate 31.5.2018
Compared to 23.04.2018 (in %)
Market Capitalization 01.01.2018*
52-weeklow
52-weekhigh
Accell Group NV, Amsterdam
EUR 17.74
- 11.7
EUR 615.16 mn
EUR 16.62
EUR 31.70
Allegion PLC, New York**
US$ 77.65
- 7.9
EUR 7.56 bn
US$ 73.85
US$ 89.81
Araya Industrial Co. Ltd., Osaka
JPY 2,121
+ 2.9
JPY 12.06 bn
JPY 1,990
JPY 2,816
Asahi Company Ltd., Tokyo
JPY 1,323
+ 2.9
JPY 36.18 bn
JPY 1,252
JPY 1,434 INR 248.00
Atlas Cycles (Haryana) Ltd., Bombay
INR 143.45
- 13.8
INR 1.41 bn
INR 132.00
Dorel Industries Inc., Quebec***
US$ 17.10
- 25.2
CAD 1.04 bn
US$ 16.90
US$ 28.00
Fox Factory Holding Corp., New York
US$ 39.75
+ 13.1
USD 1.46 bn
US$ 31.15
US$ 46.80
Giant Manufacturing Company Limited, Taipei
TWD 130.00
- 13.9
TWD 61.32 bn
TWD 130.00
TWD 180.00
Halfords Group PLC, London
GBP 336.20
- 11.0
GBP 686,07 mn
GBP 305,40
GBP 391.00
US$ 5.19
- 11.9
CNY 2.41 bn
US$ 4.96
US$ 9.30
TWD 11.35
+ 1.8
TWD 2.15 mn
TWD 10.11
TWD 15.35
US$ 0.65
- 12.4
CNY 4.74 bn
US$ 0.64
US$ 1.02 TWD 151.50
HL Corporation, Shenzhen**** Ideal Bike Corporation, Taipei Shanghai Phoenix Ent. Gr. Co. Ltd, Shanghai*****
TWD 1337.00
+ 5.0
TWD 15.60 bn
TWD 120.00
Lee Chi Ent. Co. Ltd., Taipei
KMC (Kuei Meng) International Inc., Taipei
TWD 10.15
- 3.8
TWD 2.65 bn
TWD 10.10
TWD 13.55
Merida Ind. Co. Ltd., Taipei
TWD 128.00
- 2.3
TWD 37.37 bn
TWD 116.00
TWD 165.50
Samchuly Bicycle Co. Ltd., Seoul
KRW 8,440
- 11.3
KRW 1111.44 bn
KRW 7,800
KRW 13,500
Shimano Inc., Tokyo
JPY 15,390
+ 9.5
JPY 1,480.46 bn
JPY 13,840
JPY 16,390
TWD 42.65
- 33.1
TWD 3.22 bn
TWD 16.80
TWD 99.50
Tandem Group PLC, London
Sun Race Sturmey-Archer Inc., Taipei
GBP 160.00
+ 6.7
EUR 5.40 mn
GBP 90.00
GBP 163.00
Tube Investments of India Ltd. (TII), Bombay
INR 216.95
- 9.6
INR 50.54 bn
INR 212.00
INR 304.70
Vista Outdoor Inc., New York
US$ 16.92
- 2.3
US$ 835.21
US$ 12.36
US$ 25.07
US$ 0.93
+ 2.9
CNY 1.25 bn
US$ 0.91
US$ 1.02
Zhonglu Company Ltd., Shanghai*****
* Bloomberg, Corporate Information & Yahoo Finance ** Ireland-based Ingersoll-Rand plc spin-off and listed at NYSE – therefore rates in US$ *** Canadian Dorel rates in US$, company value in CAN$ **** Taiwanese HL Corporation is listed at the Shenzhen stock market in China – therefore rates in CNY ***** Chinese Shanghai Phoenix Enterprise and Zhonglu rates and market capitalization in US$ - except Shanghai market capitalization in CNY Composed and Copyright by Jo Beckendorff (no liability assumed)
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June 2018 BIKE europe
FINANCIAL Sports division & Cycling Sports Group takes another blow due to liquidation of US chain stores
st
Dorel Reports Difficult 1 Quarter MONTREAL, Canada - The liquidation of Toys ’R’ Us in the US and earlier Sports Authority hampered listed Dorel Industries Inc in the 1st quarter of 2018. It turned Dorel Sports into a loss-making business also due to weak consumer demand at major retailers as well a “less favourable sales mix”. This should turn around in the coming months with the introduction of “exciting model year ’19 mountain and road bikes” while Cannondale will launch a complete e-bike line in Europe.
D
orel Industries’ first quarter revenue came in at US$ 642.3m; slightly lower compared to the US$ 646.7m a year ago. Net income as well as adjusted net income was about half of last year. Dorel’s financial report states, “Removing the impact of Toys“R”Us, adjusted net income was US$ 15.0m compared to US$ 22.7m for the first quarter of 2017.” Dorel’ financial report says further “The liquidation of Toys ’R’ Us in the US resulted in a first quarter impairment loss on trade accounts receivable of US$ 12.5m, comprising of US$ 2.1m
within Dorel Home, US$ 3.8m within Dorel Juvenile and US$ 6.6m within Dorel Sports. This was in addition to the US$ 3.8m recorded by Dorel in the fourth quarter of 2017.” Dorel president & CEO, Martin Schwartz comments, “The Toys ‘R’ Us liquidation in the US may cause a market disruption in the shortterm, but we believe this situation will stabilise, and both the Juvenile and Sports business will shift to other retailers or other channels during the second half. While we were anticipating a slower start to the year, the first quarter was more difficult than originally expected at Dorel Juvenile and Dorel Sports. Dorel Home had a solid quarter with a slow start in January, followed by revenue acceleration in the rest of the quarter and into April. Their warehouse network processed a record number of packages in the e-commerce channel in March.” Dorel Sports including its premium bicycle division, Cycling Sports Group (CSG), saw its first quarter revenue decline by US$ 7.3m, or 3.4%, to US$ 206.7m from US$ 214.0m last year. Dorel’s report says, “Excluding the impact of foreign exchange rates, organic revenue decreased by approximately 6.2%. The revenue decline was mostly in the mass-market channel due to weak consumer demand at major retailers, and the impact of halted shipments to Toys ’R’ Us in March. A less favourable sales mix accounted for most of the decline in
Dorel Sports saw operating profit decrease to operating loss due to liquidations of US chain stores. Photo: Bethesdamagazine
gross profit of 80 basis points. However, excluding restructuring and other costs, the decrease in adjusted gross profit was only 30 basis points from 22.4% to 22.1%. Operating profit decreased by US$ 10.9m to an operating loss of US$ 0.8m compared to an operating profit of US$ 10.1m in 2017. Excluding restructuring and other costs, adjusted operating profit decreased by US$ 10.2m. This decline includes the US$ 6.6m impairment loss on the trade accounts receivable from Toys ’R’ Us.”
For the coming months Dorel Sports expects to be able to show improved results. In particular as “Cannondale will launch a complete e-bike line in Europe in response to the growing popularity of e-bikes abroad.” Bike Europe reported earlier on the efforts the company is putting into this new e-bike line-up. CSG’s top management has invested in an e-bike development team which is based at Cycling Sports GroupEurope in Freiburg, Germany.
BIKE europe June 2018
7
FINANCIAL With Vista Outdoor’s strategic transformation:
Sales Drop at Mavic and ENVE Reports Amer
Bell, Blackburn, Giro and Other Outdoor Brands for Sale FARMINGTON, USA – In combination with the publication of its disappointing financial report on 2017 2018 US based Vista Outdoor Inc. announced an extensive strategic business transformation plan. It says that the listed company wants to focus on some of its market-leading brands which results in the sale of brands which are no longer regarded as core business. This applies to Bell, Blackburn and Giro as well as some others.
V
ista Outdoor’s ‘business transformation plan’ is the result of a comprehensive strategic review which began in November 2017. “Our review identified product categories that are core to the company’s longterm business strategy. We believe future investments should focus on categories where Vista Outdoor can achieve sustainable growth, maximise operational efficiencies, deliver leadership economics, and drive shareholder value,� says CEO Chris Metz.
As a result of this evaluation Vista Outdoor will focus on achieving growth through its marketleading brands in ammunition, hunting and shooting accessories, hydration bottles and packs (Camelbak), and outdoor cooking products. The consequence is that Vista Outdoor “plans to explore strategic options for assets that fall outside of these product categories, including its sports protection brands (e.g. Bell, Blackburn, Giro), Jimmy Styks paddle boards and Savage and Stevens firearms. Vista Outdoor expects that the execution of this process will significantly reduce the company’s leverage, improve financial flexibility and the efficiency of its capital structure, and provide additional resources to reinvest in core product categories, both organically and through acquisition.â€? The business transformation plan was announced together with the company’s disappointing fiscal year 207/18 results (ended 31 March). While sales were 9% down to US$ 2.3 billion (â‚Ź 1.91bn) gross profit dropped 22% to US$ 521 million (â‚Ź 433.94m). The financial guidance for current fiscal year 2018/19 names “an inflection point for our business, and our financial guidance reflects this reality.â€? According to CEO Metz, “Increased commodity costs and lower volume will pressure both segments
HELSINKI, Finland - Amer Sports did not have a good start to 2018 as its cycling activities through subsidiaries Mavic and ENVE saw further deteriorating net sales after a disappointing 2017.
Sale at Vista Outdoor of renowned names like Bell helmets. Photo: Bell in the first half, and higher interest expense and unfavourable tax rate will pressure earnings for the full year.� In response to these challenges, the company has taken several cost reduction actions and initiated targeted price increases. Vista will anticipate further actions if commodity pressures do not abate. “As we move through the year, we anticipate sequential, quarter-over-quarter improvements in our gross profit percentages as a result of our actions. Our strategic transformation into a consumer-focused, less complex, and more agile business will position us to unlock the true value of Vista Outdoor and its market-leading brands,� concludes CEO Chris Metz.
T
otal sales of the Finnish sports group only upped slightly in the first quarter of 2018. Amer Sports’ total turnover stood at ₏623.8 million in the first sales quarter of 2018. This accounts for a slight increase of 1% only. Amer’s Outdoor division, including Mavic and ENVE, saw net sales climb 2% to ₏381.2 million.
Fewer OEM orders For the first quarter of 2018 Mavic and ENVE posted total sales of â‚Ź32.1 million. This accounts for a big 12% drop. The reason behind this big sales decline is according to Amer Sport the fact that both companies had to deal with lower OEM orders compared to the previous year. Last year Amer Sports reported like for like cycling sales, French Mavic subsidiary points to a 7% decrease. In its 2016 financial report Amer Sports claims that the drop is caused by, “difficult conditions in the bicycle market.â€?
MOBILITY
8
June 2018 BIKE europe
BUSINESS Six e-bike motor production lines in full operation
Bafang Brings Customisation in E-Drive Systems SUZHOU, China – Located at the Suhzou Industrial Park near Shanghai drive train supplier Bafang is at the heart of the country’s hi-tech industry. Recently the Shanghai area, including Suzhou, was assigned a major developing zone for future technology. Jan-Willem van Schaik
F
or Bafang it not only brings a lot of R&D power but also all its suppliers within a reach of 50 kilometres. Bafang reports an increase in turnover from RMB 213 million (â‚Ź28 million) in 2013 to RMB 620 million (â‚Ź83 million) in 2017. For 2018 Bafang expects another 30% increase in revenue. With a capacity of more than one million e-bike drive train units the company manufactures almost exclusively for the export market in Europe and the US. Recently Bafang also made its entrance on the important Japanese e-bike market. In Europe, the main market is the Netherlands, generating 26% of the turnover, followed by Germany (17%) and France (14%). Started in 2003, Bafang’s core technologies are torque and speed sensors in combination with brushless DC motor platform designing. “Our flexibility
and product design based the on specifications of our customers is our main competitive edge,� explains Bafang’s co-founder Sunny He. “Our location in China’s largest industrial park in Suzhou gives us easy access to product development and design. While the production costs here are rising quickly, price for product engineering is much lower than in Europe, which gives us the opportunity to be very flexible towards our customer’s demands. For over 10 years we have been developing solutions in the area of e-mobility and offer our customers an extensive product portfolio. Our goal is to produce innovative and high-quality products for our customers that make a tangible contribution to their riding comfort. Our employees are dedicated to this aim. We embrace every challenge and strive to develop new groundbreaking products that set new standards.� Today some 30% of the output is customised. The level of service is part of that customisation and is set by the OEM customer giving him the opportunity to outperform the competition. They can use the Bafang E-mobility Sale and Service tool which will be styled to the look and feel of the customer. In line with that philosophy all Bafang products have a modular design which makes it much easier to service. The implementation of a Standard Communication Protocol, including UART and CANBUS, allows for a trouble free combination with
Bafang operates six production lines for e-bike motors.
Photo: Bike Europe
other systems’ components or accessories.
Factory and future Today the Bafang factory operates six production lines for e-bike motors plus another four lines for all electronic components. One hundred percent of the motor production is tested in a dedicated testing compartment at the end of each line. The batteries are all sourced externally but a new full automatic line is in preparation. This will have a capacity of 1,500 battery packs per day with only three operators. When asked whether the now much used
18650 cells will be used in the future or the larger 21700 Sunny He said, “That’s not up to the e-bike industry. Tesla determines the future R&D strategy of battery cells.� At the China Cycle show last May in Shanghai Bafang debuted a series of new products including the M800 mini mid drive system for e-road bike, M420 system for e-city bike and M500/600 for e-MTB. But more can be expected like an inner shifting mid-motor, an automatic shifting rear hub and new electronics based on IoT like the integration of GPS, Powermeters and Smart bike applications.
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BIKE europe June 2018
9
INTERVIEW European Bicycle Manufacturers Association lodged request to extend EU anti-dumping on ordinary bicycles
‘We Applaud European Commission’s Decision to Review Anti-Dumping On Regular Bicycles’ BRUSSELS, Belgium – The European Commission announced the decision to review the anti-dumping measures applicable to imports of bicycles originating in China. Should they decide to enforce these measures for another five-year term as well as to introduce these for e-bikes, it will have a major implication for the bicycle industry in China and Europe. On why the European Bicycle Manufacturers Association deems this as of the highest priority, its Secretary General Moreno Fioravanti stated: Jan-Willem van Schaik “The EU currently imposes 48.5% EU antidumping duties on imported Chinese bicycles. EBMA lodged a request with the European Commission in early March 2018 to extend EU anti-dumping measures on conventional bicycles from China which would otherwise have expired on 6 June 2018. Without a level playing field, Chinese exporting producers would flood the EU market with dumped bicycles and rapidly drive the EU industry out of the market, which already happened in the USA and Japan. As EBMA we are convinced that the EU must extend anti-dumping measures to ensure fair competition, benchmark innovations like the pedal-assist e-bikes developed by the EU Industry, green jobs and growth in Europe.”
What can you say on the importance of the industry for Europe? “Bicycles form a strategic innovative industry for Europe’s green future. The EU bicycle, e-bike & components industry generates annually over €1 billion in EU investments and approximately €12 billion in industrial output. The bicycle and e-bike industry is one of the largest employers of the “green industries” in the EU. Overall, the European bicycle industry maintains 90,000 direct and indirect jobs in the Union market, with over 800 SMEs working in 20 of the 28 Member States directly in bicycle, pedal-assist e-bikes and components production, or related industries. This industry and its broad local manufacturing base is the guarantee for EU consumers of very innovative, high quality and safe products, with the most sustainable carbon footprint and best progress toward a long-term circular economy goal.”
How important is the bicycle industry for China? “To import 20 million bicycles from China annually (EU’s yearly market volume, ed) would result in massive needless extra emissions of more than 2 million tons of CO2 and dangerous sulphuric dioxides. In addition, the inferior quality and non-respect of minimum quality standards and REACH, as with the bike-sharing bicycles from China, will also in Europe deepen a very dangerous “use-and-throw-away” trend. Fuelled by illegal subsidies and massive overcapacity, China is poised to take over the EU bicycle market through subsidised dumping and circumvention, including massive volumes of (low-quality) bike-sharing bicycles. The 13th 5-Year Plan mandates a consolidation in the Chinese bicycle industry to create national and international champions. China’s largest bicycle manufacturer Fushida receives massive subsidies, fuelling its production overcapacities which exceed total EU demand. In 2017, the annual Chinese bicycle production capacities were approximately 130 million bicycles compared with total worldwide demand of 120 million bicycles.”
Despite the existing anti-dumping measure EU imports of China made bicycles increased. How come? “During and following the last expiry review, Chinese bicycle producers began circumventing the anti-dumping measures on a large scale. The Commission found in two consecutive anti-circumvention investigations, in 2013 and 2015, that circumvention was taking place via Indonesia, Malaysia, Sri Lanka, Tunisia, Cambodia, Pakistan and the Philippines. Also Chi-
EBMA’s Moreno Fioravanti ‘low quality Chinese bike-sharing bicycles in the EU represent a major threat to both Photo: Bike Europe the EU bicycle industry and EU cities.’ nese bike-sharing companies, most importantly the two largest players Ofo and Mobike, started in 2017 to expand aggressively their bike-sharing business with a renewed increase of exports of dumped Chinese-made bicycles to many European cities. Indeed, according to
‘The bicycle and e-bike industry is one of the largest employers of the “green industries” in the EU.’ Chinese statistics, bicycle exports from China to the EU increased from 1,437,954 bicycles in 2016 to 1,658,057 in 2017, primarily due to an increase of generally low quality, bike-sharing bikes. This increase in Chinese exports to the EU took place despite a decrease in overall bi-
cycle sales in the EU, which dropped from 19,672,000 in 2016 to 18,500,000 in 2017.”
What is the role of the bike-sharing companies in this case? “Because of their negative impact on both bicycle demand and city environments, low quality Chinese bike-sharing bicycles in the EU represent a major threat to both the EU bicycle industry and EU cities. In China, the massive oversupply of the market with bike-sharing bikes, over 20 million bicycles in less than a year, led to a huge drop of more than 50% in bicycle and ebike production and sales. To date, the export of Chinese bike-sharing bikes to the EU has been much lower than it otherwise would have been thanks to the current anti-dumping duties on bicycles. Therefore, the EBMA calls on the European Commission to prolong EU anti-dumping measures on conventional bicycles from China beyond 6 June 2018.”
June 2018 BIKE europe
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LAWS & REGULATIONS DUMPING As EU Commission makes import from China subject to registration
E-Bike Dumping Duty Likely to Come BRUSSELS, Belgium – It’s almost certain; anti-dumping duties on electric bicycles imported from China are coming (or have already been announced after the print date of this Bike Europe edition). That it is certain that they will be proclaimed is because the European Commission has consented to almost all European industry dumping allegations by Chinese exporters.
O
n 3 May, by publication in the European Union’s Official Journal, the EU Commission made imports of electric bicycles originating in the People’s Republic of Chi-
dumping duties. Importers are obliged to take measures so that these duties can be collected on a later date.
How much dumping duty?
na subject to registration. This official registration is the first step in imposing provisional anti-dumping measures. Registration offers the possibility to retroactively collect the anti-
The EU Commission has not yet imposed provisional anti-dumping measures. The EU website that provides insight in dumping investigations concerning “Case AS646 Bicycles (Electric) Timeframes and key steps”, notes 21 September 2018 as the deadline for imposing “Provisional Measures”. What this boils down to is that the European Commission has up until 21 September to impose a provisional anti-dumping duty, but can also make the announcement on the imposition as early as tomorrow. At the named EU site also a “Definitive stage” is noted in this proceeding with the listing of 19 January 2019 as the deadline for the announcement of the definitive
anti-dumping duty for the entire Chinese industry, or for individual companies. The published document on 3 May on the imports registration says on the grounds for registration, “The Commission has at its disposal sufficient evidence that imports of the product concerned from the PRC are being dumped.” This Document also provides indications on what (provisional) dumping duties will be as they are based on evidenced dumping margins that are founded on a comparison between the normal value with the export price (at ex-works level) of the product concerned when sold for export to the Union. The EU Commission determined dumping margins to range from 189% to 430%. So, it could result in sky-high dumping duties. The latest update in the e-bike dumping case is at www.bike-eu.com/anti-dumping
Registration announcement causes serious worries
‘Importers Threatened by High Dumping Duties’ BRUSSELS, Belgium – The Collective of European Importers of Electric Bikes expressed a burning protest against the Commission’s decision to register imports of ebikes originating in China. The group also expressed its serious worries on the possible retroactive collection of sky-high dumping duties which would cause severe injury to importers and distributors.
T
he possible retroactive collection of dumping duties is “like a sword of Damocles hanging over the head of a very large number of European SMEs,” states the Importers Collective. It claims that the dumping case offers no evidence on injury to the EU industry, “as investigations show that at all companies’ profitability for the product concerned improved significantly in 2015, 2016 and dur-
ing the investigation period.” The Importers Collective also complains that the European Commission systematically ignores all its argumentation. They also find it “utterly dismaying and appalling”, the EU Commission states in its 3 May published Registration Regulations document. As already noted, in this document the EU Commission seems to agree to all European industry accusations on dumping by Chinese ebike exporters. The Importers say that they are in particular appalled by the dumping rates mentioned in this Regulation because “they strike fear into the hearts of EU importers faced with potentially gigantic duties. As for the indicative dumping duty rates of 189%, the Commission is fully aware that in no previous antidumping investigation has dumping duties even close to this rate ever been imposed by the EU on any imports from any non-EU country. Yet this is the figure that importers have to work with when managing the risks of carrying on their business. Factoring in such an enormous cost renders continued business unfeasible if
Importers say ‘Factoring in indicative dumping duty rates of 189% renders continued business unfeasible’. Photo: Joris Telders Fotografie
almost double of the import value of the bicycles will have to be paid in early 2019. It is therefore highly regrettable that the Commis-
sion made such a statement of an excessively high potential duty rate being retroactively imposed.”
BIKE europe June 2018
11
LAWS & REGULATIONS DUMPING Anti-dumping duties to be followed by anti-subsidy duties?
Giant China Seen as State Subsidised by EU BRUSSELS, Belgium – Latest developments in the e-bike dumping case also shed light on the 2nd accusation made by the European industry on Chinese exporters; the fact that their export is illegally subsidised by the Chinese government. This latest development comes with the EU publication of an “Assessment of Market Economy Treatment”. This AD643 Document stipulates that all six Giant companies in China are refused Market Economy Treatment (MET) as, in effect, they are considered to be state subsidised.
A
ll six Giant companies in China have been part of the EU Commission’s investigation on dumping of e-bikes by Chinese exporters. As one Chinese sampled exporting producer involved in this proceeding Giant China has claimed market economy treatment. This AD643 MET document is of particular importance because it offers clarity about whether or not there is state interference by the Chinese State. If there is state interference, it’s one
ential taxes schemes, refunds, financial incentives, and special deductions for expenses incurred. These advantages are considered as significant distortions carried over from the non-market economy system. The Commission found that these distortions, in particular in combination, provide significant financial benefits and, thus, the Group has failed to demonstrate that its costs and financial situation are not subject to distortions carried over from the former non-market-economy system.
Implications for Giant China
Giant at China Cycle 2018. Giant China exported close to 47,000 e-bike to the EU in 2016. of the bases for admissibility and the enforcing of anti-dumping and anti-subsidy duties. The EU Commission’s document says on Giant, which operates six subsidiaries in China, “The investigation (on MET, ed) was initiated on 20 October 2017. One of the four sampled Chinese exporting producers, Giant Electric Vehicles (Kunshan) Co., Ltd. and its related companies, claimed Market Economy Treatment. This claim was verified together with their questionnaire reply in March 2018. Based on the findings for these legal entities, the Commission has concluded that the Giant Group failed to dem-
Photo: Bike Europe
onstrate that it fulfils the MET criteria. The Commission found that the Chinese government manipulates aluminium prices, which distorts that market, benefitting downstream users of primary aluminium, which have access to a large supply at more or less consistently lower input prices than their overseas competitors. The differentiation in export taxes for aluminium and downstream products such as ebikes strengthens the finding of interference of the Chinese State on the domestic market.” In addition, states the AD643 MET Document, the Giant Group benefitted from several prefer-
Based on these investigation findings Giant China has been refused Market Economy Status. This could also have further implications. In particular for the investigation into illegal subsidy schemes which is running parallel with the anti-dumping investigation. It means that, next to a definitive anti-dumping duty Giant China could also be convicted to paying an anti-subsidy duty by January 2019. The combination of both duties would effectively kill Giant’s e-bike export from China to Europe. According to the European Bicycle Manufacturers Association (EBMA) that export by Giant China totalled close to 47,000 e-bikes in 2016. EBMA’s export data is based on China Customs’ statistics which, according to industry peers from China, are correct.
Giant Expands E-Bike Production in Europe LELYSTAD, the Netherlands – Giant is not waiting for things to come from Brussels. Already last January a spokesman of Giant Europe said that the company is stepping up ebike production at the facility in Lelystad, the Netherlands.
S
ome twenty years ago Giant built that facility in the Netherlands which next to bicycle and e-bike assembly also holds Giant Europe’s HQ as well as Giant Benelux. It has a considerable production capacity
of close to 200,000 units. Giant has been producing premium Giant and Liv branded bikes here as well as OEM and private label. That’s to change. Recently Giant Europe general manager Willem Buitenhuis confirmed to Bike Europe that the Lelystad facility is to step up e-bike production substantially to cater for the growing demand in Europe. In fact it is to become fully focused on e-bike production and is to supply all Giant subsidiaries and distributors in Europe. Giant is not the only one adopting this policy. In anticipation on dumping measures many more companies are now looking for production in Europe, triggering questions on the availability of drive systems and batteries.
Giant’s Lelystad, the Netherlands facility is to step up e-bike production.
Photo: Bike Europe
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BIKE europe June 2018
13
BIKE EUROPE CONFERENCE 2018 By digitalisation and smart data usage as well as automation through uniform product coding
How to Meet Consumers’ High Online Demands? FRIEDRICHSHAFEN, Germany – Online ordering consumers not only want the products of their choice to be delivered in hours; they also demand flexibility and customised quality products. How to deal with that will be explained at the July 7 Bike Europe Conference by Siemens.
T
he German industrial conglomerate is one of the keynotes. Others will also delve deep into data and digitalisation and how to make it possible to meet consumers’ high online
About Bike Europe Conference 2018 Theme: Behind the Scenes of Online Sales Date: Saturday 7 July 2018 (one day before Eurobike Show starts) Location: Messe Friedrichshafen, Room Schweiz, Conference Center West Time: from 11.30 to 16.00 For more information and for registration details: www.bike-eu-conference.com
demands. One day before Eurobike 2018 starts, Bike Europe’s annual conference will take place at Messe Friedrichshafen. On Saturday 7 July keynote speakers as well as Practical Cases and a Q&A session will address the topic of what’s ‘Behind the Scenes of Online Sales’ in the bicycle sector. The participants fee for taking part in this year’s Bike Europe Conference stands at €199.
Specific online challenges The theme of this year’s Bike Europe Conference: ‘Behind the Scenes of Online Sales’, has all to do with the nowadays rapid growth of online sales. No wonder so many companies are incorporating this new distribution strategy. However, it doesn’t come easy. The focus shift from dealers to consumers comes with specific challenges. Most of all, it requires optimised product availability – to cater to the consumer demand for same-day delivery times measured in hours. What’s needed behind the scenes to adapt to this massive change in the industry? Siemens is a company that has worked on the answers to address this vital issue. According to the German industrial conglomerate that answer is in data and digitalisation. At the Bike Europe Conference Siemens will explain that digitalisation brings ideas and processes together to form a unified digital enterprise. Its software makes it possible to produce faster; to produce
more and to produce more customised products. According to Siemens, “the future of manufacturing is about transforming data into value and to use it through software in all operating processes. Digitalisation is a must. To become a digital company start with a top-down approach. Select one operating process that needs to improve; for instance R&D. Start there with the manageable digitalisation of your company at limited costs. But realise it as it’s the start of a turnaround.”
Bike Europe’s 2018 Conference provides answers to vital questions related to online sales. Photos: Bike Europe
Uniform product coding Other keynote speakers will also address the question of incorporating data and digitalisation in the operating processes of the bicycle sector. Using a system with uniform product coding could form the basis of efficient digital operations. At the Bike Europe Conference Dutch DST, which stands for “Digitale Samenwerking Tweewielerbranche” or Digital Cooperation TwoWheeler Industry, will explain the development of their uniform product coding. The DST presentation will of course also delve deep into the benefits their uniform product coding for 180,000 products from over 40 suppliers; including all the big ones, is bringing. It’s now in use at dealers in Holland and Belgium that use these codes for their online presentations, cash register and shop systems.” The Dutch uniform bicycle product coding standard is now ready for the
European markets. Another keynote on data and digitalisation will come from Bidex which stands for Bike Data Exchange. Bidex is a German consortium aimed at for instance creating enhanced standards for data exchange in order to, for example, “check online the availability of certain bicycle models in specialist shops. Even the bike manufacturer cannot say at which dealers the desired model in the wanted colour and frame size is available for interested consumers. With that many sales opportunities goes to waste.” Furthermore, the Bike Europe Conference programme includes Practical Case Studies as well as a Q&A session. Join us to learn more about these essential topics for success with your online sales. The conference starts on Saturday July 7 at 11.30 and ends at 16.00 with network drinks and finger foods.
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June 2018 BIKE europe
MARKET REPORT EUROPEAN UNION Import of conventional bicycles finally on the rise again with Cambodia now EU’s leading supplier
Is Import Growth Indicating Recovery? BRUSSELS, Belgium – Is it a first sign of much more to come? That’s the big question when viewing the Eurostat data on the 2017 import of conventional bicycles into the EU 28 member states from countries outside the EU. After years of decline this import is growing again. Is it an indication that demand for regular bikes is rising? Jack Oortwijn
I
t’s a worrying trend for many professionals in the sector. E-bikes are on the up and up, but conventional bicycles are in the doldrums. It leads to shrinking market volumes which is hurting parts makers and of course also bike makers and especially the ones that didn’t take e-bikes that seriously in the past years. Has this disturbing phenomena come to an end in 2017 with imports of conventional bicycles into the European Union’s markets showing a small but significant growth?
30% import drop
Taiwan’s bicycle export to EU
How disturbing, better said how disruptive, this trend has been is proved by looking some ten years back to this import from countries outside the EU. In 2008 it stood at close to 9.5 million units. Nine years later, in 2017 the import totalled 6.7 million bicycles. This accounts for a close to 30% drop! The decline has continued over the past two years, as evidenced by the import figures from Eurostat; the European Union’s data bureau. Bicycle imports dropped by 3.2% in 2015. One year later things became really serious. 2016 saw an over 10% drop to well below the 6.5 million units mark. 2017 is showing recovery as growth stood at 1.3% to a total of 6.8 million imported bicycles. Value wise the 2017 import dropped noticeably. The average value per imported units dropped to €156; down close to 8% on some years of stable €166 to €168 values. Whether this drop is to be contributed to currency fluctuations remains the question. However, during 2017 the US dollar dropped significantly in value (some 13%) against the euro and as Far East procurement takes place in US dollars this seems the obvious reason.
Also some very interesting developments come to light when looking at the countries of origin of the imported conventional bicycles. Like the fact that Cambodia is now EU’s biggest bicycle supplier. It has overthrown Taiwan from that number one position which the island off the coast of China has taken up for over 20 years. In 2017 1.3 million bicycles were imported from Taiwan; down a big 16% on the 2016 total. However, this number stands particularly small when viewing it some ten years back. In 2008 the EU imported close to 3.5 million bicycles from Taiwan! Compared to the 2017 total the over 2 million units drop accounts for a 60% decline!
EU-28 Bicycle Import 2017 vs. 2016 (in units & value) 2017
2016
2017 vs. 2016
Units
6,840,347
6,751,097
+1.32%
Value
€ 1,066.067,928
€ 1,139,644,658
-6.45%
€ 155.85
€ 168.81
-7.67%
Average price
In Taiwan the bike industry is switching from bicycle to e-bike export. As for the reasons behind this huge drop; there are three obvious ones. The first is shown in the table of EU’s biggest supplying bicycle countries. Here Cambodia stands now firm on the top position. However, all the bike makers in Cambodia come from Taiwan and still have their HQ’s there. Next to Cambodia there are other Far East countries where currently Taiwan bike companies are based which export to Europe; like in the Philippines. So, production has been switched from Taiwan to other countries in the Far East.
Source: Eurostat
Duty free import into the EU
Top-10 Bicycle Suppliers 2017 vs. 2016 (in units) Country
2017
2016 (rank in 2016)
1. Cambodia
1,416,150
1,299,747 (2)
+8.95%
2. Taiwan
1,313,363
1,558,075 (1)
-15.70%
832,882
683,702 (4)
+21.81%
3. Philippines
2017 vs. 2016
4. Bangladesh
805,381
729,607 (3)
+10.38%
5. China
635,007
413,959 (7)
+53.39%
6. Tunisia
399,210
430,148 (5)
-7.19%
7. Thailand
329,222
415,001 (6)
-20.66%
8. India
303,051
272,017 (9)
+11.40%
9. Sri Lanka
279,291
310,155 (8)
-9.95%
10. Indonesia
181,395
213,430 (11)
-15.00%
Source: Eurostat
Next to these countries Taiwan production has also shifted to Bangladesh and Tunisia. In particular as from these countries bicycles can be imported into the EU without having to pay any import tax. This is reason number two. And how successful the exporters in the two named countries are, is shown in the Top-10 supplying countries table. Reason number three for the huge decline in bicycle export from Taiwan to Europe is in the fact that the bike industry in the country is switching to e-bike export. In the past three years that export to Europe has tripled. However, with some 130,000 units exported in 2017 (see the ebike import report on the next page) this num-
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EU’s conventional bicycle import stood at close to 9.5 million units in 2008. In 2017 that import totalled 6.7 million bicycles. Photo: Bike Europe ber is still small when compared to those of regular bicycles exported. But value-wise e-bikes form a much more profitable and interesting export product.
Import from China up big What is also especially striking when taking a closer look at the Top-10 supplying countries table, is China. The import from the People’s Republic of China of conventional bicycles into the EU, on which an anti-dumping of 48.5% is levied next to an import tax of 14%, increased by a big 54% in 2017. After years of hovering between 350,000 to 400,000 units, suddenly this import climbed to 635,000 units. This must surely be raising some eyebrows of stakeholders inside the EU industry. And probably also more than that as the current measures enforcing a 48.5% anti-dumping duty are to expire on 6 June 2018. Sources in Brussels have indicated that the European Bicycle Manufacturers Association (EBMA) lodged a review request for the dumping measures. The European Commission has not yet officially responded to that request. However, at last month’s China Cycle Show it was said that this review will be coming and with that probably another five year term of anti-dumping measures on the import of conventional bicycles from China.
BIKE europe June 2018
15
MARKET REPORT EUROPEAN UNION As China’s supplying role will be strongly diminished by anti-dumping duties
Taiwan and Vietnam Warming E-Bike Export Up DOETINCHEM, the Netherlands – Bike Europe delved deep into the Eurostat database not only to verify the figures provided by the European Bicycle Manufacturers Association (EBMA) in its accusations of e-bike dumping by Chinese exporters. We also searched for data that could provide an indication of countries waiting to take-over from China. Eurostat’s 2017 import data on e-bikes shows that Taiwan and Vietnam are warming up to capture the leading supply role from China. Jack Oortwijn
B
ike Europe researched the Eurostat imports database using the (per January 1, 2017 introduced) new code for 25 km/h – 250 Watt e-bikes which is CN 8711 60 10. The old code was 8711 90 10. Under CN codes all imports into the European Union are tracked while all import, dumping and circumvention duties are linked to these codes.
Export/import volumes What the Eurostat database extracted figures reveal, is that they confirm the data provided by EBMA. According to our research 723,929 ebikes (25 km/h – 250 Watt models) were imported from China into the European Union in 2017. EBMA’s figures total this 2017 import at 737,785 units. The difference of some 14,000 units stands for a negligible deviation of 1.9%. According to China Customs’ data, collected by EBMA the country’s e-bike export to Europe stood at a total of 769,533 units. The close to 32,000 units difference with EBMA import total could be accounted for as shipments that left China in December 2017, but did not yet arrive in Europe to be in the 2017 import total. Comparing the 2017 import figures with the ones for 2016, it clearly shows why the CN codes were changed and why EBMA turned to data from the China Customs office. Under the ‘old’ CN code also other products like hoverboards were registered as e-bike imports into the EU. The 2016 import figure extracted by Bike Europe from the Eurostat database under the old code 8711 90 10 shows a total of close to 1.2 million units.
Average values per imported e-bike EBMA said on the comparison of the 2016 and 2017 import totals (which included the figures from China Customs), “Overall e-bike exports from China grew by 83% in 2017 compared to 2016. A total of close to 800,000 e-bikes were exported in 2017 to the European Union’s 28 member states; up 83% on the 434,000 total of 2016.” Furthermore, the body representing the EU industry said: “The volume of exports from the PRC to the Union increased by 82 % in the period from November 2017 to February 2018 when compared to the period from November 2016 to February 2017. The European Commission considered that a year-on-year comparison was not influenced by seasonality effects and provided evidence of a rise of 82 % in the volume of imports since the initiation of the (dumping) case.” The data extracted by Bike Europe from the Eu-
Production of Vogue branded e-bikes destined for Europe at Bodo Vehicle Group in Tianjin, China. rostat database also provides the total value of the close to 724,000 e-bikes imported into the European Union from China. This value stood at some €301 million. This accounts for an average value per imported electric bicycle of €415. The data provided by EBMA does not include the average value per unit for the whole of 2017. The association calculated this value per month. Its Eurostat data shows an average value that strongly differs per month. It also indicates that these values drop strongly as the year progresses. The highest average value per imported unit was recorded in March 2017 with €580; with the lowest value per e-bike in December 2017 at €331. Comparing the values of e-bikes imported into the EU that are made in China with ones made in Taiwan, brings to light big differences. The average value per imported made in Taiwan e-bike in 2017 stood at close to €1,000; to be precise at €994 per imported electric bicycle. As said the 2017 average value per imported unit from China was recorded as €415. This leads to the conclusion that Taiwan made and exported e-bikes are on average 58% more expensive. Presumably this could be explained by the fact that from Taiwan more high-end e-bikes fitted with (Shimano or Yamaha) mid-motors are exported. However, also the Vietnam made e-bikes that are imported into the EU were considerably more expensive. A Vietnam made e-bike which was exported to Europe had an average value per unit of €562 in 2017. Significantly - 26% more expensive compared to the ones made in and exported from China. The vast majority of the Vietnam made e-bikes were probably not high-end models.
Take-over by Taiwan and Vietnam? With the last May ordered registration of e-bike imports from China the European Commission indicated that dumping duties are likely to be installed and levied on such imports. Once they are imposed China’s leading supply role will be strongly diminished. It raises the question where European importers are to turn to for meeting their demand. They will be looking for OEM makers in Europe, but next to them also for Asian suppliers. They are likely to find these in Taiwan and Vietnam. In particular as these two countries have been warming up for becoming serious exporters of e-bikes in the past years.
Taiwan ranked as Europe’s 2nd biggest supplier of e-bikes in 2017. 126,000 were imported which is three times the number of the country’s e-bike export to Europe in 2015. In that year the number stood at 43,000 units. The since 2015 tripled import from Taiwan is caused by the fact that the country’s bike industry in investing heavily in e-bikes. Merida is maybe the best example to illustrate this trend. In March 2017 Merida announced that its new ebike production facility was up and running since mid-2016. Production capacity stood at 10,000 units per month which since has been expanded to 25,000 e-bikes per month. Merida has added a second floor to its e-bike facility for increasing the production. The Merida announcement also said the company is working closely with Shimano for equipping the e-bikes with Steps mid-motors.
Giant focuses on e-bikes too After a cautious initial approach Taiwan’s leading bike maker – Giant – is now also increasingly focusing on e-bikes. The company’s 2016 financial report declared that only 7% of the total revenue was made with the sale of e-bikes. Giant’s 1st quarter of 2018 financial report states that this revenue share has grown to 30%. That Giant is taking e-bikes very serious now has also been expressed recently by a spokesperson from Giant Europe. He said that the company’s production facility in Lelystad, the Netherlands is now exclusively producing electric bikes. Next to Taiwan also Vietnam is stepping up its e-bike production and export to the EU. Since 2015 the country’s export to the EU has grown by over 40% to 106,000 units in 2017. And this number is likely to grow further in the next years which is evidenced by A&J. This originally Taiwanese company operating a bike and alloy frame producing facility in Cambodia recently said that it is building a 600,000 unit plant in Vietnam which is to focus on the production of ebikes. Last February Jon Edwards, CEO, A&J Ent. Co., said the new facility is planned to commence production in the second half of 2018. A&J is of course hoping that it will be able to benefit from the European Union’s Free Trade Agreement with Vietnam (EVFTA) which is expected to be signed in the next months. It is to eliminate all of EU’s import taxes on Vietnamese goods within seven years. Currently the EU
Photo: Bike Europe
import tax on e-bikes stands at 6%. It’s likely that next to A&J other e-bike makers will be attracted to base their production in Vietnam. By doing that they will not only profit from much lower costs for, among others, wages, but also from the import tax benefits for their e-bike export to Europe.
Bike Europe: EU-28 E-Bike* Import 2017 2017
Import in units
994,520
Import value
€ 537,230,403
Average value p/u
€ 540.19
Source: Eurostat * Code 8711 60 10: 25km/h/250 W
Bike Europe: Top-10 E-Bike* Supplying Countries Country
Units
Value (euro)
1. China
723,929
300,657,782
2. Taiwan
126,132
125,431,112
3. Vietnam
105,742
59,382,252
26,404
41,656,837
7,358
5,557,592
4. Switzerland 5. Thailand 6. Hong Kong
1,324
201,507
7. Japan
1,136
586,710 2,629,354
8. Canada
886
9. UAE
502
30,432
10. Turkey
312
236,162
Source: Eurostat * Code 8711 60 10: 25km/h/250 W
EBMA: EU-28 E-Bike Import 2017 from China Units
Average value per import unit
Jan-17
25,072
€ 513.01 €
Feb-17
38,593
€ 523.00 €
Mar-17
48,585
€ 580.12 €
Apr-17
45,901
€ 473.70 €
May-17
68,743
€ 533.04 €
Jun-17
98,952
€ 365.76 €
Jul-17
75,404
€ 360.81 €
Aug-17
72,194
€ 396.04 €
Sep-17
77,895
€ 363.41 €
Oct-17
58,875
€ 356.50 €
Nov-17
53,908
€ 371.40 €
Dec-17
59,663
€ 330.75 €
Jan-18
64,020
€ 440.64 €
Feb-18
83,317
€ 409.78
Source: Eurostat
16
June 2018 BIKE europe
MARKET REPORT AUSTRIA With close to 40% growth and e-MTBs turning into biggest category
E-Bikes Rocked Austria in 2017 VIENNA, Austria - The e-bike – and e-MTBs in particular – pushed bicycle sales in Austria to new highs in 2017. For years the volume of the Austrian market hovered around the 400,000 unit mark. With last year’s 414,000 units sold Austria has had “the most successful bicycle year since 2010”. Not only has it resulted in a 4.5% plus in unit sales, but in particular, more ebikes and e-MTBs sold also moneywise in a record year. Jo Beckendorff
A
more detailed look into the latest market figures presented by the national sporting goods industry association VSSÖ – which is also the home for the nation’s bicycle voice ARGE-Fahrrad - shows clearly where the market growth is coming from. It’s from e-bikes. And to be more precise; from e-MTBs. This is distinctly evidenced as VSSÖ decided to split the electric bicycle category into “onroad (STVO) and offroad e-bikes”. Total sales of e-bikes in 2017 in Austria stood at 120,474 units. This accounts for a big 39.2% plus
compared to the 86,546 e-bikes sold in 2016, according to ARGE-Fahrrad. The 2017 total is divided into 53,406 STVO or onroad e-bikes and 67,068 e-MTBs (see table 1). With that the more sports styled e-MTB is clearly the favourite among Austrians. And this will also probably be the case in more EU markets. Set against the total sales volume in Austria in 2017, STVO e-bikes (city styled electric bicycles) accounted for a 12.9% market share. E-MTBs recorded a 16.2% sales share. Combined the two e-bike categories came to a 29.1% market share. This prompted VSSÖ spokesman Alexander Raffeiner to say: “Soon e-bikes will take up one third of the Austrian market.” And according to the country’s organisation for sustainable mobility, VCÖ, Austria now ranks third in the Top 10 of e-bike country’s, “behind the Netherlands and Belgium but in front of Switzerland, Germany and Denmark.”
Regular bikes This more detailed look into the Austrian bike market and its 2017 performance also clearly shows another remarkable fact; despite the sharp rise in e-bike sales, non-motorised cityand trekking bikes are not affected. However, all other categories were down on their 2016 figures, stated VSSÖ/ARGE-Fahrrad. And, next to city- and trekking bikes there’s only one outsider showing sales increases: cargo-bikes. This
E-bike popularity in Austria is pushing this category to 30% share in total bicycle sales.
Photo: Simplon Fahrrad
category benefits on the one hand from the current environmentally friendly urban mobility trend - and on the other also from their ‘e’ boost.
Sports Direct. French Decathlon will follow this year with a first Austrian outlet in Vienna. They all sell bicycle products – mainly private labels.
Austria’s e-bike market increased by 40 %
IBDs versus sporting good retailers
Non-motorised mountain bike sales were hit the hardest by the e-MTB boom. Their market share dropped by some 10% to last year’s 26%. Nevertheless regular MTBs still accounted for over 100,000 units sold; to be precise for 107,640 mountain bikes sold in 2017. With that they are still by far the biggest category in Austria.
Prices Thanks to the big rise in e-bike sales, the average sales price also hiked in 2017. It rose by 17.1% to €1,054 (see table 2). ARGE-Zweirad bases this information on the average sales price achieved at sports and bicycle retailers. In Austria sporting goods retailers are strongly represented in the bicycle sector - firstly because many sporting goods retailers based in the country’s ski resorts want to balance their ski and snowboard sales in winter with bike sales in summer. Moreover, Austria’s sporting goods retail market is dominated by several larger national and international sporting goods retailers like Hervis or Norwegian XXL and UK’s
Austrian Bicycle Sales 2017 Units Market Share (%)
Kids-/Juvenile Bikes
45,954
11.1
Citybikes
22,770
5.5
Trekkingbikes
59,202
14.4
Crossbikes (Offroad)
32,706
7.9
107,640
26.0
9,522
2.3
53,406
12.9
E-Mountanibikes
67,068
16.2
Others (cargo, folding etc.)
15,732
3.8
Mountainbikes Roadbikes E-Bikes STVO
Total Source: ARGE-Zweirad/VSSÖ estimations
414,000
The fight between bike dealers and sporting goods retailers is presented in last year’s bicycle average sales price points. While the average price of a bicycle sold by sporting goods retailers increased by 15.7% to €752, at IBDs it climbed by 17.8% to €1,355. This shows that the average sales price of a bicycle sold by IBDs was some 80% higher than the one sold at a sporting goods retailer. It underlines that IBDs are still the first port of call for genuine premium branded bicycle products. However, the private labels of the sports giants are quickly picking up sales pace in order to win their piece of the trendy e-bike cake. This urged Simplon sales manager Wolfgang Haberstock in his new role as ARGE-Fahrrad spokesman to note: “We recommend consumers to rely on the advice and service expertise of the sporting goods retail and IBD world - at the very least for safety aspects.”
Main ‘Made in Austria’ players What last year’s VSSÖ/Arge-Fahrrad figures don’t communicate are domestic bicycle production and the number of bikes imported. However, with KTM Fahrrad GmbH and Simplon Fahrrad GmbH, there are only two bicycle producers selling larger quantities on both national and international markets. Both rely on “Made in Austria”. Of course frames are out of the Far East. But assembling takes place at the company headquarters’ factories in Mattighofen (KTM) and Hard (Simplon).
Average Sales Price Bicycles 2017-2016 2017
2016
Average sales price (ASP)
€ 1,054
€ 900
ASP Sporting goods retailers
€ 752
€ 650
ASP IBDs
€ 1,355
€ 1,150
Source: VSSÖ survey/estimations
BIKE europe June 2018
17
MARKET REPORT GERMANY Average retail price of bicycles and e-bikes together increase by 25% in two-years’ time
German E-Bike Market: Record Growth in 2017 BERLIN, Germany – The e-bike market in Germany is growing at a record pace. The latest 2017 data from industry association ‘ZweiradIndustrie-Verband’ (ZIV) clearly underlines that e-bikes nowadays in Germany are, next to a preferred mode of mobility as well as for leisure and sports, also a clean, quiet and space-saving alternative for city logistics.
E-bike categories On what e-bikes are sold in Germany ZIV states that about 99% are 250W/25 km/h models. About 1% is speed pedelecs; the 45 km/h models which must be type-approved and for which a helmet and insurance obligation applies. Furthermore; breaking down the 99% of 250W/25 km/h e-bikes it shows that e-City bikes have a 38.5% share in total sales; e-Trekking stands at 35.5%, e-MTBs at 21.5% and eCargo bikes at 3%. ZIV notes further that ‘Made in Germany’ e-bikes continue to be in high demand. The country’s bike makers exported 291.000 e-bikes in 2017; up 25% compared to the 2016 export total.
Jan-Willem van Schaik
I
Total 2017 bicycle market n 2017, 720,000 e-bikes were sold in Germany. With that the total sales increased by a big 19%. It makes that currently one in five bikes sold in Germany is an e-bike.
Market share The e-bike share in total bicycle sales currently stands at 19%. ZIV expects that share to expand even further in the next years; in the medium term to 23 – 25%, representing a total sale of close to one million units. ZIV’s long term expectations calls for e-bikes to grow to a 35% market share, or a total of 1,350,000 units. While the weather in 2017 was relatively good for cycling and with that cycling sales, ZIV also mentions the emission scandal and the impending driving bans in cities as a driver for people to turn to bicycles as an ideal means of transport for short and medium distances.
Popularity of online sales The rise of online sales in Germany was illustrated by the news last November on the acquisition of one of the largest online players in bicycles Internetstores AG by the retail giant Signa. The ZIV market figures over 2017 show the importance of online sales, as this channel already holds a market share of 19% and this is expected to grow.
For the total bicycle market in Germany in 2017 ZIV notes that sales stood at 3.85 million units; 5% down on the 2016 total. The total amount of money involved with this sale stood at â‚Ź2.69 billion; a 3.2% increase compared to 2016. Including P&A sales ZIV estimates that the total 2017 turnover made in Germany stood at â‚Ź5.4 billion. The average sales price of a bicycle (including e-bikes) stood at â‚Ź698; up 8.6% on the price in 2016. In two years’ time, the average retail price in Germany increased a huge 25%, perhaps the biggest hike in recent history. In sales volume the regular urban/urban, trekking and MTB categories saw a slight decrease while other categories like youth bikes, road race bikes, flat handlebar bikes, cross, kids bikes from 12-inch as well as Holland and touring bicycles remained unchanged. Siegfried Neuberger, managing director of the industry association ZIV stated, “The German bicycle industry was once again able to increase sales last year. The e-bike is the driver of the industry. Here, the positive forecasts for the last year were even exceeded. For the future, too, we are confident that this trend will continue.â€?
Bicycle Market 2015 – 2017 * 2015
2016
2017
Regular bicycles
3.82
3.45
3.13
E-bikes
0.54
0.61
0.72
Total volume
4.36
4.06
3.85
Total market value
2.43
2.60
2.69
Compared with 2015, the production volume in Germany went down by one third last year.
‘We are confident that in future e-bikes will continue to be the driver for the industry.’ Local production Contrary to the positive market results, the volume of Germany’s regular bicycle production declined substantially in the past years. Compared with 2015, the volume went down by one third or 620,000 units to 1.26 million bicycles. Even the 50% increase in e-bike production from 310,000 units in 2015 to 470,000 units last year could not compensate this decline. The import of bicycles to Germany hovered around the same level as in 2016 at 2.65 million units. Cambodia is still at the top as main importing country in Germany with 23% of all regular bicycles or 885,500 units. Number two and three in the
Bicycle Production 2015 – 2017 *
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ranking are Poland with 13% and Bulgaria with 11%. The category e-bike shows a completely different picture: the main exporter to Germany is Hungary at 22% of the total volume, followed by China and Vietnam (both 16%). The e-bike import was up 12% from 570,000 units in 2016 to 640,000 last year. On export level, the popularity of German ebikes abroad does compensate for the loss in volume of regular bikes. The total volume of bicycles and e-bikes together has been approximately 1.15 million units although the e-bike share increased substantially to 25% in 2017. Germany’s e-bikes are most wanted in the Netherlands who bought 24% of Germany’s export volume or 69,600 units. The second largest market for German e-bikes was France at 16%.
Bicycle Import/Export 2015 – 2017 * 2015
2016
2017
Bicycle import
2.91
2.59
2.65
E-bikes import
0.37
0.57
0.64
2015
2016
2017
Total import
3.28
3.16
329
Regular bicycles
1.88
1.62
1.26
Bicycle export
1.02
0.92
0.87
E-bikes
0.31
0.35
0.47
E-bikes export
0.14
0.23
0.29
Total volume
2.19
1.97
1.73
Total export
1.16
1.15
1.16
* In million units Source ZIV
* In million euros Source ZIV
Photo: Bike Europe
* In million units Source ZIV
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June 2018 BIKE europe
18
SHOW REVIEW 28TH CHINA INTERNATIONAL BICYCLE FAIR The e-bike industry finds itself in a vacuum being unable to prepare for what’s going to happen
E-Bike Dumping Issue Dominates China Cycle SHANGHAI, China – The announcement of the European Union to make imports of e-bikes originating in the People’s Republic of China subject to registration as part of the dumping investigation a few days before the opening the 28th China International Bicycle Fair overshadowed the event completely. Exhibitors confirmed to Bike Europe that this issue dominated all meetings with European e-bike customers.
A
few days before the halls of the huge National Exhibition and Convention Center in Shanghai were filled with potential customers, the e-bike component suppliers and manufacturers had to prepare themselves for that much expected question: What are you going to do in case the European Union decides to impose an anti-dumping duty on China made ebikes? The answers were unambiguous. An anti-dumping duty on China made e-bikes would cause a major shift of the production to other locations outside the country. Potential locations mentioned during conversations were Japan or Taiwan, others are investigating to take an even
bigger step: opening up production or an office somewhere in Europe. Specifically Portugal, Poland, Romania and Bulgaria were frequently mentioned as an option for their future manufacturing base. Some have already taken the step to relocate production to Europe, like Tianjin Golden Wheel. Multi sources at the show confirmed with Bike Europe that Giant Bicycles will invest some €15 million in a second, new factory somewhere in Eastern Europe.
Hectic market situation Those who are still looking for production at one of the existing assemblers in Europe might not be too late. Contrary to the general expectation that all capacity in Europe has been booked including options for 2019, European assemblers were offering capacity during the show to produce locally. In this hectic market where companies are trying to find new ways to help their customers, new kinds of industry services emerge as well, like the Dutch company OEMBikes. They are offering a wide range of services including an office address, all banking and accounting facilities. One supplier offering a city e-bike at €420 FOB ruled out Eastern Europe as a potential production location as “everybody wants to go there so I expect that prices will go up very quickly.” OnebotBike, offering an e-bike for €510 FOB claimed that “our products can’t be compared with the
More E-Bike Exhibitors Than Ever At China Cycle 2018 The timing of this year’s China Cycle couldn’t be better as the European Commission announced its initial verdict on the anti-dumping complaint issued by the European Bicycle Manufacturers Association (EBMA) on e-bikes imported from China. What the implications are of anti-dumping measures on the China Cycle Show 2018 will be of particular interest. But what stood out already, even before the show had opened its doors, was that despite all current uncertainties the dumping case brings to the trade in and export of China made e-bikes, it didn’t seem to affect Shanghai in advance. China Cycle 2018 even featured a special
e-bike pavilion this year. Next to that the total floor space of the show has been increased to 180,000m² while the number of booths stood at 7,500; a record high. It was also particularly interesting to find out what was on display at this year’s China Cycle. Were the country’s major makers like Aima, Tianjin Golden Wheel, Battle (Fushida) or Phoenix continuing their shift to mid and high-end ebikes? And would they, despite the coming anti-dumping measures, continue to display European styled e-bikes? Or would they now focus more on their domestic market that demands a completely different product as regular Chinese e-bikes look more like scooters.
regular ones made in Europe. We target them at supermarkets, DIY stores and webshop. That is a completely different market.”
Unable to prepare Obviously the e-bike assemblers are struggling with the current situation. The e-bike industry finds itself in a vacuum being unable to prepare for what’s going to happen. Nobody wants to order goods to be supplied later this year not knowing what it will cost to import it. “The filing of the anti-dumping complaint in itself last year September had a disruptive effect on the e-bike business,” stated an industry insider. “The uncertainty takes too long and results in unfair competition.” Multiple times the question was raised why the investigation had to take so long to conclude and draw a conclusion. “We have a saying in Chinese: When the water in the river rises, the boat has to rise too,” explained Alfred Zhao, European office manager of Mxus. “You have to adapt to the adjustment on the market. In the case of anti-dumping it means we all share the burden: the manufacturer, the importer, the retailer and the final customer.”
Second disruption However, the biggest disruption in the bicycle industry has been caused by the local Chinese market. The immense increase in the volume of bicycles on the streets of China’s large cities as part of sharing systems offering easy and low priced transportation caused a lot problems. The public spaces was quickly filled with millions of bicycles. Cities responded by strictly regulating the number of sharing bikes or even simply forbidding them. Subsequently operators downscaled
On the show floor the Chinese e-bike industry seemed to be more occupied with the short-term future. their orders at bicycle and e-bike assemblers rapidly while people hardly bought a new bicycle or e-bike. Why should they, the city streets are flooded with cheap bikes for transport. Regarding the major growth market for the bicycle industry, China is no longer the best place to be. Many A-
With a total of six, the China Cycle was one hall bigger than last year. Photos: Bike Europe brands have put in a lot of effort to establish a market position in the country. Many of them have found one or more national distributors and are no longer exhibiting in Shanghai. According to industry insiders demand for European and US A-branded products is still marginal, but thanks to China’s huge market volume it is important. Also in the long-term China is regarded as an attractive market for investments although uncertainty in growth prevails.
Shake up of show calendar To facilitate all exhibitors, the size of the show floor of the 28th China Cycle show had been increased once again to some 180,000 square metres. The China Cycle is still regarded as the best opportunity for European and American brands to enter this vast market and seek Chinese partners. Therefore some 20% of the exhibitors list is made up of foreign companies. “The China Cycle reflects the strength of our national industry,” said China Bicycle Association chairman Ma Zhongchao at the opening of the 28th edition of the show. “The growing importance of local brands on international markets reflects the acceleration of the transformation and upgrading of Chinese bicycle industry.” In Shanghai the Chinese e-bike industry seemed to be more occupied with the short-term future and a different kind of transformation Ma Zhongchao had in mind. However, looking at the level of professional presentations at booths in combination with brand building, the Chinese industry is making big steps forward. The shake up of the international bicycle show calendar, caused by Messe Friedrichshafen’s decision to move Eurobike’s show dates to July which made TAITRA conclude to change the dates of the Taipei Cycle Show, also affected the China Cycle. Thanks to the reshuffle, ‘Shanghai’ is now the first big one of this year on the calendar attracting more European and particularly South American visitors.
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BIKE europe June 2018
19
SHOW REVIEW 28TH CHINA INTERNATIONAL BICYCLE FAIR
An anti-dumping duty on China made e-bikes would cause a major shift of the production.
A wide variety of e-city and e-trekking bikes were offered in different price categories.
“This show reflects the strength of our industry,� said China Bicycle Association chairman Ma Zhongchao at the opening.
The official number of visitors has not been released yet but the show floor was busy throughout the days.
Being the first international show on the calendar, China Cycle attracted again more overseas visitors.
20% of the exhibitors list is made up of foreign companies.
The size of the show floor increased once again to some 180,000 square metres.
E-bike production outside China was one of the main themes.
Brand building has become an important topic in China.
20
June 2018 BIKE europe
SHOW REVIEW 28TH CHINA INTERNATIONAL BICYCLE FAIR
Big Ben Launches Selle Mio Saddle Brand Big-Ben bicycle component manufacturer selected the China Cycle Show for the introduction of their own saddle brand; Selle Mio. The Ludhiana, India based company is launching their own brand for the first time in its history.
I
n the past 50 years we have been manufacturing many bicycle products for a wide variety of customers but never with our own label,” explained Angad Singh of the third generation of the family that runs Big Ben Ex-
port. “We have not just put on a label, but this new brand is a mind changer for us as well as our customers. For Big Ben it is new to work with a brand and we are aware this requires a completely different strategy than before. Also our customers have to get used to it, but we are convinced of the potential of our brand.” Big Ben stepped up its saddle manufacturing capacity substantially in the past years from 5 million in 2013 to 7 million pieces in 2017. “As a part of our investments in the past years we even hired a dedicated engineer to increase our capacity and improve our production technology,” said Angad Singh at the China Cycle show. Initially Selle Mio will focus on a
wide variety of foam sports and city bike saddles, but also includes a range of genuine leather saddles. For the export to the European market, Big Ben employed the Polish industry veteran Michal Koziarski to take care of OEM as well as distributor sales. Next to sales Koziarski will also take care of product design and development. A nice feature of Selle Mio is the option for some models to print your own photo on the saddle with matching grips. This technology allows Big Ben to offer batches of one unit. Next to saddles, Big Ben also manufactures and exports grips, reflectors and pedals.
Angad Singh; 3rd generation of the family that runs Big Ben Export, launched Selle Mio brand at China Photo: Bike Europe Cycle.
Dahon Presents New Frame Technology Alongside the new 2019 folding bike range, the main topic at the Dahon presentation at the China Cycle show was the new folding technology, ‘the NuWave’. According to Dahon it is “both adaptable and very compactable.”
D
uring China Cycle’s second day on 7 May, Dahon held a product launch. Dahon’s CEO and founder Dr David Hon presented the company’s brand new technology
offering a range of new models. Dahon selected the China Cycle show for the presentation of this folding technology to target the bike sharing companies who gained a dominant market position within a few years in China. The NuWave technology is featured in a range of new models including the NuWave bike and the DES-1 electric scooter. The last one is mainly developed for the local market. “Unlike other Dahon bikes, the new models’ frames do not fold,” explained Dr Hon. “Instead, it is the stem and seatpost that very quickly stow downwards and inwards, along with the handlebars and
pedals. The result is a very narrow package, just 15 centimetres wide, that can be easily pulled or pushed via built-in rollers, or tucked behind furniture, and in lockers.” Both the NuWave and DES-1 are ready for mass production, and will be available for the market later this year. The NuWave Classic can be produced with 14, 16 or 20-inch wheels, while the NuWave Electric comes with 16-inch wheels only. At a topspeed of 20 km/h the e-version of the NuWave features a rear hub drive and a battery inside the frame’s main tube. According to Dahon the battery has a reach of 25 – 30 kilometres.
Unlike other Dahon bikes, the new models’ frames do not fold. Photo: Bike Europe
BIKE europe June 2018
21
BUSINESS A 15 Years experienced lithium-ion battery manufacturer’s strategic planning for the future
Phylion To Focus On EU E-Bike Manufacturers SUZHOU, China – Moisture control is one of the key fundamentals in the production of battery cells. Together with consistency, these are the two most essential elements that make the quality of e-bike batteries. For e-bike battery supplier Phylion these two elements are a key part of their production strategy. Jan-Willem van Schaik
P
hylion was one of the first lithium-ion battery players on the e-bike market in Europe. After some years of experience, the company opened a European office already in 2009. At that time, the Netherlands was their main market in Europe with a strong focus on e-bikes. As inclined in the name, the company only pro-
duces high power lithium-ion batteries. The name Phylion derives from the ‘Physics research institute of the Chinese Academy of Sciences for Li-Ion’ based in Suzhou, near Shanghai. Its products are mainly applied in electric vehicles (EV) and light EVs like e-bikes and e-scooters as well and in energy storage’. Since the company was founded in 2003 it has supplied various products and services to no less than 5.2 million light EV customers, 35 thousand EV customers and various industrial projects all over the world. Last year Phylion supplied some 500,000 battery packs in Europe as well as 650,000 units for the Chinese e-scooter market. Since they started to distribute batteries for electric vehicles in 2014 in combination with the rapidly expanding European e-bike market, the company’s turn-over increased quickly from €59 million in 2015 to €195 million last year. Also for 2018, Phylion reports to expect an increase in turn-over between 80 and 100%.
“Today some 30% of our business comes from e-bikes in Europe,” says Luc Liu, vice general manager LEV Division at Phylion.
Consistency is key in the production of e-bike batteries. Production expansion To keep up the market growth, Phylion opened an all new factory in 2012 followed by the construction of additional halls in 2016 as well as in early 2018. Today Phylion employs some 1,900 people. Only recently Phylion announced the construction of another factory in four phases, in the city of Chuzhou. The first one should be operational by the end of 2019. About 65% of today’s production of Phylion battery packs for the European market is made up of premium Japanese and Korean brands cells. The remaining 35% comes with Phylion made cells, of which the production is a complicated and high-tech process. The conditions inside the production facilities are strictly regulated. For example the humidity of the room is limited to 2% to prevent any moisture in the foil of which the cells are made of. Next to the quality laboratory, Phylion also operates a second, fully separate, laboratory to perform safety tests. “Our in-depth knowledge of materials and cells, together with our extensive testing facilities allows us to validate the outsourced cells we use in our battery packs. Thus it helps to ensure the reliability and stability of our products.”
Photos: Bike Europe
says Luc Liu, vice general manager LEV Division at Phylion. “The in-house production of cells also gives us a competitive advantage.” As no less than 60 to 80% of the price of a battery pack is made up of the production of the cells excluding raw materials, it is obvious how important an inhouse battery cell production is for a company like Phylion.
Future market strategies As a professional manufacturer of lithium-ion power batteries with 15 years experience, Phylion has been actively promoting the global industrial layout and will build overseas production bases in Europe and South Asia. These factories will include pack assembly in the first phase and then cell production in second phase. “The undefined anti-dumping action of European Union on electric bikes is not only a challenge but also an opportunity for Pyhlion. And it will help us to speed up our overseas layout,” says Luc Liu. The future goal of Phylion is not only to be a leading manufacturer of e-bike batteries, but also a high-end supplier in the field of e-scooter, threewheel LEV and four-wheel LEV globally.
22
June 2018 BIKE europe
BUSINESS
Pinarello Specs Pirelli Tyres for MY 2019 MILAN, Italy – Two iconic Italian brands have found each other. In late April Pirelli announced its OEM partnership with Pinarello, whereby Pirelli will provide its PZero Velo tyres to the whole range of Pinarello Dogma F10 bicycles for model year 2019.
F
or its top-of-the-range bikes, Pinarello has chosen Pirelli’s new PZero Velo tyres. In recent months, Pinarello has tested the PZero Velo, carrying out extensive road tests. “We found that Pirelli tyres invariably delivered outstanding performances, with optimal results in each and every respect including rolling resistance, grip on wet and dry surfaces, ease of handling, resistance to punctures and durability, showing that they can fully meet our highperformance requirements,� said Fausto Pinarello, president and CEO of Pinarello.
“It is with the greatest pleasure that we announce our first and very important OEM agreement with one of the world’s most prestigious bike makers,� said Antonella Lauriola, COO Business Unit Velo Pirelli. How important tyres are for the cycling experience was pointed out by Fausto Pinarello stating: “Tyres are the final and pivotal link between the bike and the road. Fitting the wrong tyres would nullify our work and compromise the performance of our bikes.�
Pirelli will provide its PZero Velo tyres to the Pinarello Dogma F10 range. Photo: Pinarello
EU’s biggest battery maker entered into long-term agreement with LG Chem
BMZ Secures Long Term Li-Ion Cell Delivery KARLSTEIN am MAIN, Germany – Europe’s biggest e-bike battery maker – BMZ – has been able to secure delivery of hundreds of millions of Lithium-Ion cells.
S
uch cells are the core of e-bike batteries as well as those for electric cars like Tesla and many ‘mobile’ products. With that demand for batteries is “exploding and delivery of cost-effective battery cells is crucial,� said BMZ CEO Sven Bauer. Last month BMZ GmbH entered into a long term agreement with LG Chem
Ltd., one of the world’s largest cell manufacturers based in Korea. The agreement between the two companies is for the long term supply of hundreds of millions of Lithium-Ion cells, up until the end of 2022. “This provides our customers with long term supply security for their products based on Lithium-Ion technology,� explained Bauer. “Establishing this long term agreement between BMZ and LG Chem has entailed longlasting co-operation upon mutual trust and partnership and will be a pivotal point for both companies to further expand domain within Europe�, said Youngsun Kim, vice president of LG Chem Ltd., Korea. After the contracts between LG Chem
and BMZ end in 2022, Li-Ion cell production will be up and running in Europe. This production is to start on a small scale in Germany next year but is to be gradually upscaled to grow to a level that will be sufficient to compete with the currently all in Asia based Li-Ion cell suppliers. This European lithium-cell Gigafactory is founded by TerraE in which BMZ is one of the investors. In 2019 and in 2020 production will be scaled up to an output of some 4.0 Giga Watt hours. In the years after, up until 2028, the planning is to grow the TerraE production to 38 GigaWh. By that time Sven Bauer reckons that about â‚Ź5 billion would be invested in the production.
Agreement between BMZ and LG Chem is for long term supply of hundreds of millions of LG’s Li-Ion Photo: LG Chem cells up until the end of 2022.
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BUSINESS BIKE VALUE PORTUGAL “We are always working on the improvement of our efficiency on all levels”
Polisport Offers Close to Market Production CARREGOSA, Portugal – Change is a motivator in an important part of the strategy for Polisport Plásticos. The Portuguese manufacturer offers a wide range of plastic products in the bicycle and motorcycle industry but has also taken some significant steps in recent years to grow its business. Jan-Willem van Schaik
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he location of Polisport Plásticos nearby Portugal’s Bike Value in Agueda gives the company a strong competitive advantage. “The introduction of the Portugal Bike Value still attracts a lot of attention to what Portugal’s industry offers,” says Pedro Araujo, CEO and president of Polisport Plásticos SA. “That’s one of the major benefits of the project. We also get a lot of requests and are always open for cooperation with new partners. And those requests also come from potential partners outside our own business field of plastic products. At Polisport Plásticos we control all processes, from creation to design, product engineering and manufacturing as well as warehousing and logistics. The entire process is done in-house: a dedicated team, a design centre, an exclusive
unit dedicated to injection with automated processes, an exclusive unit dedicated to molds construction and development, an internal quality test centre, a dedicated warehouse. To emphasise our capabilities and to get our people even more focused on the products they are making, we have made a clear split between bicycle and motorcycle products. This even goes for the production departments, sales as well as R&D.” For the production of bottles mainly sold in the running and cycling industry, Polisport even founded an all new company called Poli Promotion. Polisport was already producing over a million bottles a year, this new company should grow the business on the promotion market as well. For the production of the bottles an all new factory is currently being set up.
New injection molding machinery “We need to prepare for a change,” is a phrase I often tell to the Polisport people says Pedro Araujo. “Improvement has become a part of our DNA. We are always working on the improvement of our efficiency on all levels. In the production we have implemented the Kaizen method. Recently we also invested in an all new line up of injection molding machinery which also resulted in much better working conditions for our people.” During strategy sessions, each group within the company discusses the developments for the next five to six years. An impor-
tant topic during those discussions is always ‘do we have the tools to achieve our goals?’. “Of course we also focus on the e-bike market,” says Pedro Araujo. “This is the market of the future and current growth will even accelerate thanks to new markets but also riders of younger agegroups. For one of the rapidly growing categories, the e-cargo bikes, we are manufacturing the cargo boxes.”
Speed e-bike helmet Also Polisport’s growing helmet production is anticipating on the increasing e-bike market with a NTA 8776 approved speed e-bike helmet. The company Headgy Helmets was founded in 2013. “We are planning to upgrade our helmet production to the high-end category in close cooperation with our partner. In future this factory should facilitate the high-end market as well. Our customers will continue to plan their mass-production in Asia, while we can be very flexible and provide close to the market production to guarantee product availability during the season.” A major incentive for this fashionable and volume-wise large product. Polisport Group was founded in 1978, originating from the founders passion for two wheels. Today the company employs 350 people in Portugal and Brazil. Based on internationalisation and innovation the company has expanded its customer portfolio and markets, and nowadays
Polisport invested in a new line up of injection molding machinery. Photo: Bike Europe has a presence in more than 60 countries. Polisport is one of the stronger players on the babyseats markets and its portfolio includes the high-end brand Bobike, acquired in 2013. Polisport holds a strong position in the motorcycle sector as OEM supplier of the major manufacturers like KTM, Husqvarna, GASGAS, Triumph and BMW. How the bicycle industry in Portugal developed over the years can be illustrated by Pedro Araujo’s remarks: “In the past we were one of the few if not the only Portuguese company attending the international bicycles show. I had to explain to people about our bicycle industry. Fortunately, this has changed a lot now and at the next Eurobike our industry is even presenting itself in a joined Abimota booth.”
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BOOTH NO.: A1-302 JULY 08. – 10.2018
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BUSINESS BIKE VALUE PORTUGAL Fully automatic frame factory puts Portugal up front in the bicycle industry
Triangle’s Frame Production At Full Capacity In 2020 BORRALHA, Portugal – Triangle’s Cycling Equipments has taken the next major step in the development of aluminium frame production in Europe. After the initial start of the production in October 2016 with a small batch of test frames, the manufacturer gradually increased volumes as well as the complexity of frames produced, including those for e-bikes. Jan-Willem van Schaik
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ortugal has always had a strong concentration of bicycle related companies in the area around Agueda, south of Porto. This strong base with a significant production position within the European bicycle industry locates renowned parts makers like Rodi, Polisport and Miranda. Both Rodi and Miranda with another partner Ciclo Fapril participated in the foundation of a fully automated and robotised aluminium frame factory. They called this project: Triangle’s. Until now the partners invested
a total of â‚Ź30 million in this ambitious project that should change the character of the European bicycle industry. Thanks to Triangle’s it became possible again for OEMs to source most of the bicycle parts and components they need in Europe, instead of being dependent on Asian suppliers. It was presented as a major contribution to solve the issue of long lead-times and an inflexible supply chain. Quickly the Triangle’s factory became well known in the bicycle industry and is now fully operational. “The total output of Triangle’s will be 120,000 frames this year. Eventually Triangle’s will grow to the total capacity of 500,000 units by 2020. By then, the 20,000 square metre building will be fully occupied,â€? says Triangle’s general manager Luis Pedro during Bike Europe’s visit.
E-bike and full-suspension frame Right from the start it was one of the main goals of Triangle’s to combine the e-bike frame production with high-end frames for conventional bicycles. Earlier this year, Triangle’s launched its first e-bike frame, followed by a second and third model this spring. The next stage of development is the production of a full suspension frame. Until now all models are hardtails. Initially Triangle’s started with the design and produc-
The total output of Triangle’s will be 120,000 frames this year. tion of less complex frames in order to regain the know-how necessary for aluminium frame production. “Finally we expect that e-bike frames will take up 70% of our total annual production of 500,000 units,� says GM Luis Pedro. “We assume to reach full capacity by 2020.� According to the initial planning of the three Portuguese Triangle’s investors; Ciclo Fapril, Rodi and Miranda the aluminium frame factory would be fully operational this spring. However, that goal has not been reached. GM Luis Pedro explains: “This is the start of a new era. There was hardly any know-how available in Europe on how to produce aluminium bike frames. Everybody at Triangle’s had to learn how to do it on the job. And we still have to train each new employee that comes in ourselves. So, we started with small series and relatively simple frames.� Today 80 people work in the 20,000 square metre factory where ‘everything’ is done inside, from cutting, cleaning, welding, CNC, heat treatment and a fully automatic alignment of the frame.
Break-even by 2019 Pedro explains further: “Triangle’s will generate
Photos: Bike Europe
a turnover of â‚Ź3 to 4 million in 2018 while the company will break-even in 2019. Our main customers are based in the Netherlands, Germany and Spain.â€? According to industry insiders the number of Triangle’s clients is limited and not as much as expected. Nearly 70% of the production capacity this year has been taken by Orbea while Decathlon, one of the initiators to start up more component production in Europe in order to reduce lead-times and speed up the supply chain is not in Triangle’s order books. In the meantime, Triangle’s continues to develop new initiatives to meet customers demand. During Bike Europe’s visit a new 1,500 ton hydro form press was installed in order to create more frame design options. In the hall alongside a line of fully automatic painting facilities was installed. “Providing the best possible service is the most important part of our strategy as in price it will always be very difficult for us to compete,â€? says Lius Pedro. “Thanks to this state-of-the-art factory we can however meet all demands of the European bicycles industry, both technically, as well in design, flexibility and short lead times.â€?
“Thanks to this state-of-the-art factory we can meet all demands of the European bicycles industry,� says Triangle’s general manager Luis Pedro.
BIKE europe June 2018
BUSINESS PORTUGAL BIKE VALUE In addition to investments in new machinery
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Miranda Prepares Next Expansion of Factory
Today Miranda concentrates on cranks and full cranksets.
AGUEDA, Portugal – Miranda & Irmao is one of the initiators and strong promoters of the Portugal Bike Value. “This idea was born to make Portugal’s industry stronger,� says Miranda president Joao Miranda. As bicycle part manufacturer, Miranda & Irmao is more and more focusing on its core business: drive train components. Jan-Willem van Schaik
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he strategy to improve speed-to-market resulted in Miranda’s substantial investments in CAAD tooling, rapid prototyping technology as well as forging solutions and fatigue analyses software. The company has been manufacturing a wide range of bicycle parts over the years but now concentrates on cranks and full cranksets. With this strategy, Miranda also offers its customers more flexibility in the production but also extended the range of product finishes. “We have done major improvements on product level, but most important is of course our short lead time,� explains Joao Miranda. “The combination of our increased flexibility in production and our proximity to the European bicycle industry which we can reach within three days, by truck, give us a major competitive advantage. Short lead times has become one of our main selling points but customers also praise our flexibility and our wide offering is finishes which makes it possible for our customers to distinguish their bikes.�
Photos: Bike Europe
chinery, technology and production engineering. The results of this investment programme became clear when touring the factory floor. Major changes have taken place here compared with previous visits to Miranda. Every square metre has been occupied to give space to a lot of new machinery while some old ones are still left in order to be phased out. The process of the transformation of the factory is in full swing while the production is continuing in order to keep up the company’s standard of short delivery times. The latest addition to the already wide drive train related products was the cold forged index chainring. At Eurobike Miranda will enter an all new phase with the unveiling of a power meter. Though closely related to the crank, Miranda enters an all new era with the introduction of electronics. Besides Miranda’s role as promoter of the Portugal Bike Value the company is also a strong advocate of cycling. To promote bicycle mobility, to reduce car traffic, and to encourage employees to ride more, plans for a new e-bike area are already underway in à gueda. The company will provide e-bikes to its staff to give people the possibility to experience cycling when commuting. At the same time they are also testing new products. This bike park is planned to be launched in the coming months.
THE MINIMALISTIC REAR LIGHT H-TRACE MICRO
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More investments to grow capacity To grow its capacity Miranda built an additional hall, while they also acquired their neighbouring plot of 15,000 square metres for a future construction of another hall. This one will be ready by 2020. Not only a participant in the Triangle’s aluminium frame production project, Miranda also invested substantially in new ma-
THE THRIFTY FRONT LIGHT H-BLACK MR4
Thanks to a new production strategy Miranda is much more flexible.
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BUSINESS
next CHALL EN GE please
Sachsenring Bike Manufaktur Acquires Dapu Opens European Service Office SHANGHAI, China – Being successE-Bike Drive System Maker Relo SANGERHAUSEN, Germany – To upgrade its competencies in the strongly growing e-bike and e-mobility market, Sachsenring Bike Manufaktur acquired the direct drive manufacturer Relo. “With the newly acquired know-how of Relo we can create many synergies for our established brands Grace, Steppenwolf and Vaun,� says Sachsenring MD and owner Stefan Zubcic.
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achsenring Bike Manufaktur, that took over the struggling MIFA in July 2017, reports an increasing demand for e-bikes. “This is the result of the impending dumping duty on China made e-bikes,� says Stefan Zubcic. “At any time, we can offer our customers flexibility, ‘made in Germany’ quality and reliability in deliveries.� In early 2016 the advanced e-bike transmission system Relo was launched and the production started later that year. After a failed financing restructuring the business was stopped temporarily in the summer of 2017. To handle all bicycle and e-bike assembly orders, Sachsenring Bike Manufaktur currently employs 150 people. “Thanks to our flexible manufacturing line control we can produce different batch sizes from basic bicycles to complex models. Based on the positive response in the market and
MIFA owner Sachsenring Bike Manufaktur reports increasing demand for e-bikes. Photo: Sachsenring the faith in our quality, we will enlarge our production capacity to handle orders from new customers,� says Zubcic. He emphasises that the production facilities in Sangerhausen, “are more attractive than ever before.� For Sachsenring Bike Manufaktur the omnichannel distribution strategy is starting to pay-off. “For both national and international customers our omni-channel production proposition is very profitable. Also, the introduction of the new eMTB of our own brand Steppenwolf is promising. Starting next August, these will come off the production line and delivered directly to consumers as well as interested dealers, thanks to our innovative distribution system.� Zubcic also announces that Sachsenring Bike Manufaktur will step up its activity in the cargo bike market. “Years of experience with the cargo bikes of the German federal post gave us an important competitive advantage which we intend to turn into a commercial success in this sector.�
ful on the booming European ebike markets requires at least a service office close to these markets. Drive systems supplier Dapu is the next who is taking this step forward. Its new office will be operational early next month. Japanese owned and Shanghai based Dapu entered into a joint venture with MOK Technologies in the Netherlands for service and maintenance. This office will be open by the end of this year.
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ext to that Dapu also entered into a partnership with the Dutch company Betronic. “We want to be close to our customer to provide the best possible service and one of our important clients is based in the Netherlands,� said Dapu president Fumio Kurebayashi at the China Cycle Show in Shanghai last month.
Anti-dumping measures Dapu is one of the companies anticipating European anti-dumping measures on e-bikes produced in China that are exported to Europe. For that the company is moving its Shanghai based operation. By the end of this year, Dapu expects its brand new drive system factory in Taiwan to be fully operational in order to avoid any hampering in its supply to European customers due
Dapu president Fumio Kurebayashi.
Photo: Bike Europe
to a possible anti-dumping duty. “Next to production we are currently looking for technical support from institutes and universities in Taiwan. This strategy was also very successful for us when we started here in Shanghai,� said Fumio Kurebayashi.
‘Drive system factory in Taiwan operational at the end of 2018’ Dapu is a Japanese-owned company who has been manufacturing and delivering electric bicycle components worldwide for over 10 years. “We are deeply committed to exploring innovative technologies in a constant bid to offer the ultimate e-bike experience. Our rapidly spreading reputation means we now supply some of the leading European and American e-bike brands and reach consumers in over 40 countries.�
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BUSINESS BIKE VALUE PORTUGAL Traditional production of leather saddles
Tabor Holds On To Production In Europe AGUEDA, Portugal - Tabor leather saddles is one of Portugal’s traditional brands. Founded in 1965, Tabor is now part of Ciclo Fapril, but still holds on to the tradition of producing leather saddles in Portugal.
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hough Tabor is already an old name, it was relaunched just two years ago after Ciclo Fapril acquired the company at the start of the century. Tabor is a niche product in the extensive range of sheet metal cutting Ciclo Fapril produces for a wide variety of industries. In fact Ciclo Fapril is made up of seven companies who all operate independently on their own markets. “We re-launched the Tabor brand as it still has a strong brand name, known for the typical Portuguese ‘pasteleira’ bicycles. During the sixties, seventies and eighties of the past century, Tabor was in its heyday also because they produced motorcycle parts.� The Northern part of Portugal used to have a strong leather industry producing shoes, upholstery for car seats and saddles for horse riding. When Tabor was started in 1965 is was already a joint venture of no less than five saddles manufacturers. Fortunately, all traditional tools were still intact when Ciclo Fapril bought the old company. At the moment Tabor is based in one of Ciclo Fapril’s fac-
tories which was completely modernised only recently, like so many other companies did in Portugal.
Image of handmade saddles Today leather saddles are mainly sold in Denmark, the Netherlands, Sweden and in Finland. Although the market for leather saddles is relatively small in units and distributed in a small number of countries, Tabor still sees the potential of this product. “We aim at a share of the market, based on our traditional production. Our first step is to gain market confidence as the brand has been away for some years. Next to Europe we are aiming at the North American aftermarket but we also hope to find some OEM partners. Handmade and produced in Europe are two of our main selling points and very important for our image. Unlike others and in line with the Portugal Bike Value project we will not relocate our production to low cost countries outside Europe. Our owner Ciclo Fapril is one of the initiator of the Portugal Bike Value project and co-investor in the Triangle’s bicycle frame factory so our future strategy is in line with the project’s philosophy. For the same reason we have studied the market of plastic gel or foam saddles but there is hardly any space left for new suppliers in this market. This option is not closed for us, but we first want to concentrate on production in Europe.�
Tabor is trying to reduce its ecological footprint by only utilising leather which was vegetable tanned instead of using chromium VI. Photo: Bike Europe Tabor regards its products more than just a saddle. “For us it is a piece of art, just like a Ducati is not an ordinary motorcycle, priced between â‚Ź65 for the city saddle and â‚Ź90 for the heavy duty. People riding a bike with a Tabor
saddle are not just cycling, they are making a statement.� Tabor is trying to reduce its ecological footprint by only utilising leather which was vegetable tanned instead of using chromium VI.
FAIRAND SQUARE Discover THUN’s new torque sensor X-CELL RT 2.0 for pedelecs and e-bikes at EUROBIKE 2018 (booth no. A2-109) MADE IN GERMANY
THUN
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SHOW PREVIEW EUROBIKE 2018 Despite new dates, 2018 edition is sold out
Exhibitors’ Influx Confirm Eurobike’s New Concept FRIEDRICHSHAFEN, Germany – Despite, or maybe thanks, to its new dates, this year’s Eurobike is completely booked. Not at the end of August, but on Sunday 8 July this year’s Eurobike starts and runs for three days including Tuesday, 10 July 2018. Over 1,400 exhibitors will take up the complete floor space of the Messe Friedrichshafen exhibition complex.
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he 2018 Eurobike show welcomes some 100 new exhibitors who are either making their premiere appearance at this year’s edition of the leading bike industry trade show, or who are returning to the Eurobike stage after an absence. According to a Eurobike press release they are “reaffirming the new concept for the
trade show and are proof of the vigorous dynamism currently characterising the bike market.”
E-bikes to dominate 2018 Eurobike show Kona is one of the names returning to the show. The company from the American Northwest is bringing its new e-MTB line Remote, equipped with Bosch drives as well as with sturdy luggage racks. With that Kona is building an electric bridge between the MTB and traveler bikes. Kona will certainly not be the only one presenting such cross-over e-bikes. In particular as it is expected that e-bikes will dominate the 2018 Eurobike show. Among the many e-bike and e-bike component exhibitors there will also be a bunch of newcomers. And among them not the least of companies. Like the newly founded e-bike provider TechniBike. The name of the brand may sound new, but the company behind it is well known to many consumers: TechniBike, is a subsidiary of the entertainment electronics manufacturer TechniSat Digital GmbH. Now the new
Bike Europe Daily Newsletters For the latest news on Eurobike as well as an up-to-date schedule on events during the show, check www.bike-eu.com regularly or subscribe to our Eurobike Show Countdown and Eurobike Daily Newsletters via www.bike-eu.com/newsletter
Over 1,400 exhibitors will take up the complete Messe Friedrichshafen exhibition complex at the 27th Eurobike that will start Sunday, 8 July. Photo: Bike Europe bike range will be presented to the industry community for the first time at the Eurobike. Exhibitors that celebrate their Eurobike debut not only include manufacturers of bicycles and e-bikes; many produce P&A. One example is the young company Rubber Kinetics, which was recently able to secure a licensing agreement with one of the most renewed brands in the bike segment. The American startup is going to produce and sell Goodyear branded bike tyres.
Electrification trend brings new services With the ever increasing retail prices of bikes
thanks to the electrification trend, the relevance of financial and insurance service providers in the bike market is growing as well. Eurobike has with them also become a trade show that focuses on new bike-related services, especially in the West Foyer. One pioneer in this segment who is returning to the Eurobike stage this year after a few years’ absence is Wertgarantie AG, which, with its guarantee and theft insurance products for bikes, is one of the market leaders in this segment. Note, most of Eurobike’s new exhibitors come from Germany (24), followed by Taiwan (8), the United States (7) and France (6).
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PRODUCT REPORT EUROBIKE PREMIERES About 11- and 12- speed, the ‘34’, 1X and triple no longer there
Previewing Eurobike’s Race News FRIEDRICHSHAFEN, Germany – Apart from a flood of e-bike news; what will Eurobike bring for other categories? Here’s what we can expect from the road race sector. News from Shimano and Campagnolo and an update about FSA and 3T with 1X.
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his spring Campagnolo brings its first 12-speed groupset. Now there are 12-speed versions of Record and Super Record. The new 12-speed is available for disc and rim brakes while the new cassettes fit old bodies. Gears and chain needed a diet for their 12-speed versions. The R12 chain is 5.08mm wide: 11-speed chain 5.5mm. That slimming delivered a 12-speed cassette which weighs only 3 grammes more than the old 11-speed. On why 12-speed; Campagnolo claims it brings more efficient shifting. Especially with smoother chain lapsing from the smallest to the biggest cog while the feeling that one gear is just a bit too heavy and the other a bit too light will be less. There are two 12-speed cassettes: 11-29 and 1132. 11, 12, 13, 14, 15, 16, 17 and then either 1921 23-26-29 or 19-22- 25-28-32. They come with slimmer and more modern Ultra Torque cranksets offering three combis: 50-34, 52-36 or 53-
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B2 - 212
AVS is the new system for baskets, bags and other accessories. With its intuitive one hand connection it makes the daily use of bikes much easier. No need for counter hold when releasing items as they stays in place when fixing or releasing. Strong fixation ensures that accessories stays firm when riding the bike.
39. Optically, the 12-speed groupsets are different with more aerodynamically Ergopowers with adjustable distance between the handlebar and the brake lever. The derailleurs allow for wider tyres (up to 32mm). As for (retail) prices, Super Record 12-speed rim brakes: €2,915.42 and for the one with disc brakes: €3,199.05. Shimano keeps it (for the time being) at 11-speed. That is for road racing groupsets. For MTBs the company last month launched a new XTR groupset with ‘Micro Spline’ freehubs coming in two versions of which one for a 12-speed cassette. In road race the big Shimano news is the 105 R7000 groupset. It follows Dura-Ace 9100 and Ultegra 8000 (2017) with 105 R7000 parts being look-a-likes. New 105 has flat BRR7070 calipers, compatible with ‘Ice Tec’ brake pads and UCI compliant SM-RT70 disc brakes. Plus ergonomically shaped hydraulic control levers, matching Ultegra levers. There’s also a more compact version of the dual control shifter with better fit for smaller hands. 105 R7000 allows wider tyres. This mechanical groupset comes retail for €649; with disc brakes costs an additional €240. FSA We; this electronic groupset is becoming gradually available. Electronically shifting of the 2 X 11 drive train is partly wireless, partly wired. Shifters have their own button cell battery and communicate wireless with the system’s ‘brain’ in the front derailleur. The battery in the seat
Campagnolo brings its first 12-speed groupset in Record and Super Record groupsets. post is wire-connected with both derailleurs. 1X. The Aqua Blue team pro’s ride with a 3T Strada aero bike with 1X drive and disc brakes. That means: crankset can handle chainrings of roughly 44 to 54 teeth, the rear derailleur is compatible to a ‘36’. Advantage: no front derailleur hassle, lower weight, simple. Disadvantage: big jumps between the sprockets.
Photo: Menno Grootjans
All this relates to the fact that the triple is no longer there. The trend now: a 2 X crankset and cassette with ever larger cogs. Was earlier a ‘30’ mainstream, now a 32 and 34 is more and more used. Customers who switch from a modern MTB to a road race bike know this. Stubborn racers will have to get used to it.
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PRODUCT REPORT EUROBIKE PREMIERES Latest in tyre Innovations by biggest makers:
Inserts for Airless to Low Air Volume LOMAZZO, Italy – The biggest in tyres are presenting innovations that come with inserts. Schwalbe recently launched its Airless system for public and e-bikes making them puncture-proof. At Eurobike Vittoria presents the Air-Liner insert for tubeless mountain bike tyres which replaces air volume for providing a “Fully tunable system that gives a progressive feel.”
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n its announcement on Air-Liner Vittoria says, “It used to be that riders had to choose between high-speed tyre stability, and ultimate grip. The reason was, the air pressure was the only thing preventing the tyre from bottoming out on the rim. While riders wanted this stability and protection, they also wanted traction and grip, which meant the tyre needed to be soft enough to deform to the terrain. Through casing and compound advancements, huge gains in stability and grip have been made, however, one thing has remained the same… the air in the tyre. “The Air-Liner destroys the traditional compromise of stability vs. grip, and allows your tyres to remain stable, grippy, and controlled. The secret is the exclusive shape of the insert, and the
proprietary low-density super-durable polymer material. These factors work together to bring tubeless mountain bike tyre performance to the next level.” According to Vittoria, “the Air-Liner insert replaces air volume in the tyre, and when combined with the shape, provides a fully tunable system that gives a progressive feel. First, the insert replaces a portion of the air volume within the tyre. This reduced air volume allows the tyre to compress and rebound in a more controlled manner compared to standard tubeless systems. Impacts are absorbed and damped, much like in a suspension system. This protects both the tyre and wheel, which traditional suspension does not.” “Second, by using a round cross section with Vchannels, the Air-Liner insert provides a progressive feel that is easy to tune. The top Vchannel provides room for the tunable air chamber that sits directly beneath the tyre tread. Upon impact, the corner edges of the Vchannel flex first, and progressively build to the thicker portion, as the tyre is compressed. This allows the tread to remain flexible, which increases traction, without sacrificing impact resistance. The bottom V-channel allows for easy fine-tuning of the air chamber, and allows for full compatibility of all valve core styles. The round cross-section shape mimics the natural shape of the tyre, and supports a greater con-
Air-Liner insert replaces air volume in mountain bike tyres for providing a tunable system. tact area within the sidewalls of the tyre casing. Side-to-side tyre stability is increased, yet the tread remains soft and grippy. This improves cornering, climbing, and braking performance.” The Vittoria Air-Liner is available in four sizes, to suit the needs of XC, Enduro, Trail, and Plus bike tyre volumes, and is compatible with all makes and models of tyres. Air-Liner is made from a
Photo: Vittoria
proprietary high-density superdurable polymer material, specifically designed to increase the performance of mountain bike tyres and wheels. The Air-Liner will be available in shops this month. The insert comes in four widths (small, medium, large and extra large); is compatible with any wheel diameter up to 29” (700c), and is designed to be trimmed during install.
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BUSINESS
CALENDAR
India and Taiwan Join Forces for E-Vehicle Development NEW DEHLI, India – Recently India and Taiwan signed a Memorandum of Understanding for the joint development of electric vehicles. The Memorandum partners, the Indian Society of Manufacturers of Electric Vehicles (SMEV) and Taiwan’s External Trade Development Council (TAITRA), agreed to join their efforts in the development of electric vehicles through the exchange of information and technology.
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he Memorandum of Understanding (MoU) is to bring investments into India’s electric vehicle sector. The MoU is also to provide opportunities to discuss significant matters like the electric vehicle policies of the governments of the two countries, their market trends, technologies as well as business and investment possibilities. It also aims at establishing a R&D sector in India in order to boost electric vehicle manufacturers in India.
Memorandum of Understanding signing ceremony between India and Taiwan for joint development of electric vehicles. Photo: Satnam Singh Taiwan electric vehicle alliance
100% electric mobility by 2030 Speaking at the MoU signing ceremony, Sohinder Gill, director-Corporate Affairs of India’s Society of Manufacturers of Electric Vehicles said, “Our association with TAITRA will provide essential growth tools to the Indian EV sector and helps manufacturers in addressing challenges with real solutions. This MoU underlines the commitment of both partners to the government’s vision of 100% electric mobility in India by 2030.” TAITRA president Walter Yeh said, “As part of the collaboration, both parties are to undertake several market studies on the electric vehicle sector in order to identify key issues and address them accordingly. The associations are also to take the necessary steps for the development of electric vehicles through trade promotion and economic cooperation between the two countries.”
A good professional journal is more than a carrier of information. It selects, classifies and analyses. It brings all those working in the trade in contact with each other. A professional journal from Vakmedianet is the meeting place for professionals. Bike Europe is your scanner for the market! BIKE europe Trade Journal for the European Trade in Bicycles and Scooters Bike Europe will be published 10 times in 2018 © 2018 Vakmedianet Hanzestraat 1 7006 RH Doetinchem The Netherlands Phone: +31 88 584 0675 E-mail: marianvanderzalm@vakmedianet.nl
Publisher Esther Scholten Chief editor Jan-Willem van Schaik janwillemvanschaik@vakmedianet.nl Phone: +31 88 5840 619
For the joint electric vehicle creating efforts of the two countries Taiwan’s Electric Vehicle Alliance comes into play. This alliance was founded in February 2018 and aims to promote the Taiwan electric vehicle industry in global markets. Initiated by TAITRA chairman, James Huang, the alliance brings together Taiwan’s major electric vehicle companies in the supply chain of 2,3 & 4 wheelers, to key industry components such as motors, batteries and battery management systems. The alliance aspires to form a “national electric vehicle team” and to jointly execute marketing campaigns in global markets, particularly in India, Indonesia, Vietnam, Thailand, the Philippines and Europe. Taiwan’s Electric Vehicle Alliance serves as a platform for gathering electric vehicle enterprises and generating collaborative opportunities.
Deputy editor in chief Jack Oortwijn jackoortwijn@vakmedianet.nl Phone: +31 88 5840 601 Hedwig Berendsen - Hooman HedwigBerendsen@vakmedianet.nl Phone: +31 88 5840 661 Annemarie Visser AnnemarieVisser@vakmedianet.nl Phone: +31 88 5840 676 Sub editor Zana van Dijk Design colorscan bv, www.colorscan.nl Correspondents Belgium/EC: Annick Roetynck, Canada: John Palmer, Czech Republic: Jakub Ditrich, Finland: Heikki Kuva, France: Michel de Chavanon, German speaking countries: Jo Beckendorff, Italy: German Eslava, Poland: Marek Utkin, Portugal: Alexandre Silva, Russia: Andrei Khorkov, Slovenia, Baltic States: Grega Stopar, South East Asia: Satnam Singh, Spain: Ivan Perez Cudrada, Switzerland: Peter Hummel, Taiwan: David Frazier, United Kingdom: Paul N. Blezard, United States: Gary Boulanger, South Africa: Ron Thompson, Electric vehicles: Susanne Brüsch For all your advertising requirements contact: Sales B2B Lucas van ‘t Hof Phone: +31 6 53709687 lucasvanthof@vakmedianet.nl
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INTERNATIONAL & ACCESSORIES BICYCLE PARTS DIRECTORY
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Scooter Market!
Company Name : DONGGUAN YENYUE MACHINERY CO., LTD. Company Name Contact Position Address Postal code City: Country Telephone Fax E-mail Website Categories
: BRANC CO., LTD : Emily Chen : Sales Manager : 7 Fu Kung Rd., Fu Hsing Ind. Zone : 50662 : Changhua City : TAIWAN : +886-4-7688016 : +886-4-7688020,7688021 : branc@mail.branc.com.tw : www.boryueh.com : Accessories: Rack, Bottle cage, Basket, Kickstand, Unicycle
Company Name : GUMONDER INDUSTRIAL CO., LTD.
Contact
Brand
: GMD
Position
: Sales
Contact
: LIN, WEN-JU
Address
: No.62, Kirin Ridge Road, Shahu Village,
Address
: NO 3-8, JI LUNG HSIANG, HO PING LI, JYI JYI TOWN
: Evan Lin
Tangxia Town, Dongguan Postal code + City : 523710 Guangdong
Postal code + City : 552 NAN TOU HSIEN
Country
: China
Country
: TAIWAN
Telephone
: +86-769-86852366
Telephone
: +886-49-2762306,2760187
Fax
: +86-769-86852388
Fax
: +886-49-2762889
: yenyue@kindshock.com.cn
: gmd100@ms41.hinet.net
Website
: www.exa-form.com
Categories
: Dropper & Suspension Seat post
Leticia@gmd-tire.com.tw Website
: www.gmd-tire.com.tw
Rear Shock Front Fork
Categories
: Wheel Components
Handlebar Accessories
Company Name : DDK GROUP CO., LTD. Contact : Joy Sung Position : Sales & Marketing Director Address : 12F-10,No.213,Chaofu Rd. Postal code + City : 40757 Taichung Country : Taiwan Telephone : + 886-4-22551897 Fax : + 886-4-22551827 E-mail : ddk@ddk-group.com Website : www.ddk-group.com Categories : Saddles Grips City and Trekking Bike Components e-Bike Components Accessories
Tire & Tube Manufacture
Company Name : Formula Cycling Contact
: Filip Carpentier
Position
: Managing director
Address
: Bargiestraat 32
Company Name : HWA FONG RUBBER Ind. Co., Ltd.
Postal code + City : 8900 Ieper
Contact
: Roger Luo
Country
: Belgum
Position
: Vice president
Telephone
: +32 (0)57 48 75 00
Address
: Rm #815, 8th Fl., No.152, Sung-Chiang Rd.,
Fax
: +32 (0)57 48 75 01
Postal code + City : 10458 Taipei
: info@formula-cycling.be
Country
: TAIWAN
Website
: www.beone-bikes.com
Telephone
: +886-2-25319833
Categories
: Bicycles & accessoiries
Fax
: +886-2-25221630, 25221184
: duroexp2@duro.com.tw
Website
: www.duro.com.tw
Categories
: Tire & Tube Manufacturing
Company Name Contact Position Address
: KING RITZ ENTERPRISE CO., LTD. : Juliana Chi : Sales Manager : 11-11, Sihyue Rd, Hou Li
Postal code + City : 42112 Taichung Country : Taiwan, R.O.C. Telephone : +886-4-25561130/1, +886-4-25573688/9 Fax : +886-4-25572320 E-mail : yst@ms6.hinet.net Website : www.yst-corp.com.tw Categories : Transmission Components e-Bike Components
Company Name Contact Position Address Postal code City: Country Telephone Fax E-mail Website Categories
: LANXI WHEEL TOP CYCLE INDUSTRIES,LTD. : James SONG : GM Assistant : No.22 Chenjiao rd,Lanxi,Zhejiang,China : 321100 : Lanxi : China : +886-579-89022983 : +886-579-88230678 : James.song@wheeltop.com : www.wheeltop.com : Transmission Components City and Trekking Bike Components e-Bike Components Accessories Crankset & Chainwheel
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