TAIWAN EXPORT STATISTICS

E-bike and bicycle shipments to the European Union almost on par Hike in Taiwan e-bike export volume to Europe

TAIPEI, Taiwan – The second year with the Covid-19 pandemic brings new challenges to Taiwan’s bicycle industry. Last year was a rollercoaster with order cancellations in March followed by a sharp increase in order volume. In 2021, it is all about component shortages, although Taiwan’s latest export statistics clearly show a hike in e-bike and bicycle exports.

Jan-Willem van Schaik

According to Taiwan’s customs data, e-bike exports hiked by almost 38% to over 744,506 units from January to August this year compared to the same period in 2020. EU countries, including the UK and North America, imported by far most of these e-bikes. Shipments to the EU hiked to 397,840 (21%) between January and August in line with market expectations. In North American, sales were boosted by almost 55% from 141,959 units in 2020 to 218,762 e-bikes this year. In units, the biggest jump in Europe was made by Germany where imports increased by almost 80% to 70,720 units, making the country the second-biggest receiver of e-bikes after the Netherlands. Some 254,000 e-bikes were imported through Rotterdam’s port in the Netherlands for distribution into the European Union. This was 25% more than the amount imported between January and August 2020.

Transformation to e-bike production quicker than expected

As the average FOB price of e-bikes continues to increase, the total export value as reported by Taiwan’s customs made even bigger hikes. For Europe, the total export value increased by 28% from €354 million (January to August 2020) to €454 million in the same period this year. The North American import value increase by 69% to €241 million.

Giant and Merida These e-bike sales reports are in line with Giant’s latest financial revues. In early November, the country’s largest bicycle and e-bike manufacturer report steady, strong demand for bicycles and e-bikes worldwide resulting in fully-booked production facilities. For Giant, ebikes have become the main sales driver. In the third quarter of 2021, e-bike sales increased by 37% year-on-year. The importance of this product category continues to grow for Giant. In the first half of the year the company reported that e-bikes already contributed to 27% of the company’s total sales while this percentage had increased to 31% at the presentation of the third quarter results. Giant will also expand its e-bike production yet again. Following the newly-built facility in Hungary, the company, which has been operational since March 2020, will invest in more production in Vietnam. “In the medium to long term, the global trend towards green energy and rising health awareness should continue to give the best tailwind to growth in both bicycles and e-bikes,” Giant wrote in a statement. “Not least for this reason, production capacities are being strategically expanded.” In doing so, Taiwan’s number one bicycle producer aims to “improve production quality to ensure that the Giant Group maintains its leading position in manufacturing and meets market demand.” For the construction of the automated bicycle and e-bike factory in Vietnam, the Taiwanese have reported an investment sum of US$48 million (€40.81 million). Although Giant did not report any shipping delays, Merida did in October. Due to container shortages, the company’s volume of e-bikes and bicycles combined shipped overseas last September dropped by more than 25% to 78,801 units. From January to September, Merida shipped 930,436 bicycles, a year-on-year increase of 12.5%. Despite logistical challenges, Merida is still very positive about the financial results at the end of the year as demand in both the US and Europe remains strong.

E-bikes surpass bicycles in export volume The bicycle category has almost lost its leading position in exports from Taiwan to the EU (including the UK). Despite an increase in volume of more than 19% between January and August this year compared with 2020, the number of units totals 406,707 compared with 397,840 ebikes. I wouldn’t be surprised if e-bike volumes have passed regular bicycles by the end of this year. When Taiwan Bicycle Association chairman, Michael Tseng, gave his outlook of the market in autumn 2019, his view on e-bikes was clear: “The transformation of the Taiwanese industry from producing traditional bicycles and the appropriate components to e-bikes was in full swing. Traditional bicycles are becoming ebikes and that requires an all-new approach to production, distribution, and marketing. The Taiwan industry is now fully focused on e-bike engineering as we continue to strive to do our best to cover the needs of the global market.” This is exactly what happened in Europe. The export market to the EU (including the UK) is completely different. Sales volume grew by 19.6% from 339,964 in 2020 to 406,707 this year. Despite the increase in units so far this year, the market has changed drastically. In 2018, Taiwan still shipped more than 1.1 million bicycles to Europe. Though the volume has changed considerably this year, the market value remained mostly stable as the average FOB price declined by nearly 15%. This resulted in an export value increase of 1.9% from €194 million in 2020 to €187 million this year. Market developments in North America are a bit different. Between January and August this year, some 670,804 bicycles were shipped to the US, Canada and Mexico. This is an increase of almost 34% compared with the same period in 2020. Furthermore, the average price and total turnover went up by 40% to €393 million. This situation in North America is expected to change very soon as the pandemic gave a major push to cycling. The market has also expanded following recent changes in e-bike regulations, which has resulted in more places to cycle. Source BOFT information center/Taiwan Bicycle Association