TAIPEI, Taiwan (BRAIN)—The export value of bicycles from Taiwan reached $683 million through May, an increase of 9.4 percent from last year.
The primary contributing factor behind the growth was the commitment from leading manufacturers like Giant and Merida to develop more advanced and higher quality bikes, according to TAITRA, the Taiwan External Trade Development Council.
Taiwan’s export value for the first five months of the year outpaced China’s. TAITRA figures show China’s export volume between January and May totaled 23.6 million units. That represents an on-year growth of 2.5 percent from 2010’s 22.9 units, but prices dropped significantly as many units were entry-level models. Export value dropped 15.8 percent from $1.257 billion in 2010 to $1.058 billion this year.
While exports may be declining, China operations are increasingly important to Giant and Merida due to rising demand domestically. Demand from China accounted for 28 percent of Giant’s revenue through August, and 22 percent of Merida’s, according to financial analysts.
Giant’s China revenues increased 40 percent year over year through August and Merida’s China unit sales were up 99.5 percent with revenue growth of 117 percent year over year.
Through August, Merida reported revenue from its Taiwan operations of NT$ 1.4 billion ($49.2 million), up 22.5 percent from the year before. Giant’s Taiwan revenue was NT$1.8 billion ($64.2 million) for the first eight months of the year, an increase of 11.6 percent.