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Roc
Posted on Friday, June 04, 2004 - 12:59 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

The following is from a Chinese economic publication.
Local Companies Scramble
for Big-Bike Market

By QUINCY LIANG

Motorcycle makers and dealers in Taiwan are
moving aggressively to capture the domestic
heavy-motorcycle market (for machines over
150cc), which was opened up on July 1
following a two-decade ban designed to save
energy and protect the local motorcycle and
scooter industry. The move is a response to
membership in the World Trade Organization
(WTO).

The most active company in pushing heavy
models is Kwang Yang Motor Co. (which
markets under the KYMCO brand), which will
soon introduce three 250cc models--Grand
Dink and Ego scooters, and the Venox
motorcycle. The company has already
produced these models for export to the
European market, where the customer response
has been favorable.

Company officials say that the three models
have already passed local certification
requirements.

Kwang Yang has also confirmed that it is in
talks with Harley-Davidson of the United
States and Kawasaki of Japan about importing
their heavy models into Taiwan, and that results
are expected soon.

Another local producer in the line, Sanyang
Industry Co. (which makes and sells SYM-
brand models), started exporting its 200cc
Joyride scooter to Europe in May, giving it an
early foothold in the heavy-scooter segment.

Sanyang president Chou Ken-yuan says that the
200cc Joyride will not be sold domestically, but
that a 180cc model of the same scooter will
represent the company's opening salvo in the
local heavy-scooter market. The 180cc Joyride
is undergoing tests and will be unveiled as early
as September. It will be priced at about
NT$100,000 (US$2,970 at NT$33.7:US$1).

Chou also reports that his company is close to
winning the Taiwan dealership for heavy
motorcycle/scooter models imported from
Aprilia of Italy.

Importing for the Short Term

Two other local manufacturers, Yamaha Motor
Taiwan Co. (which cooperates with Yamaha of
Japan) and Tai Ling Motor Co. (which works
with Suzuki, also of Japan), say that they will
not make heavy models locally in the short term
but will import them from their Japanese
partners.

Tai Ling currently has 600cc and 1,300cc
motorcycles undergoing government testing.
The company says that it will import Suzuki's
larger street/sport model, which is currently the
world's fastest motorcycle with a top speed of
320 kilometers per hour, and sell it at around
NT$600,000 (US$17,800) beginning in mid-
September.

The company says that other imported heavy
models will be introduced to the domestic
market through selected distributors. It is also
evaluating the feasibility of producing at least
one 250cc motor-scooter model locally.

Yamaha Taiwan's initial plan is to import the
250cc Majesty scooter and sell it in the Taiwan
market at a price of NT$190,000 to
NT$200,000 (US$5,600 to $5,900. Industry
insiders believe that if customer response is
favorable enough, the company will start
producing the model locally. It has been
manufacturing the 125cc Majesty, which shares
the same frame and body, for over two years.

Several foreign motorcycle makers have
already signed dealership agreements with
local importers, including Ducati and Benelli of
Italy and Triumph of England (whose foray into
the Taiwan market will be spearheaded with the
955cc Speed Triple street/sport model and the
790cc Bonneville classic model).

BMW intends to import several of its heavy
motorcycle models and sell them through its
car showrooms around the island.

Japan's Honda, which makes motorcycles and
scooters in addition to automobiles, will not
export its two-wheelers to Taiwan until next
year at the earliest. The Japanese company's
four-decade-long cooperative ties with
Taiwan's Sanyang were severed recently, and it
is currently busy setting up a fully-owned local
subsidiary, Honda Motor Taiwan, to re-
establish its auto production on the island.

Angry Importers

Numerous other importers which have applied
to bring in heavy motorcycles were angered
after a recent announcement by the
Environmental Protection Administration (EPA)
that emissions testing for such imports could
not begin before early July. The prospective
importers fear that the delay will prevent them
from taking advantage of the initial sales boom
which is expected to follow the opening of the
market, since testing and certification generally
take several months. This could give locally
produced heavy models an unfair advantage.

Many heavy machines are already in customs,
but the EPA says that most of them are for
research and demonstration rather than for sale
on the local market. Under current rules, with
the exception of special cases the EPA can
carry out certification only for motorcycles that
are intended for sale.

One local importer claims, however, that he has
obtained permission from both the Board of
Foreign Trade (BOFT) under the Ministry of
Economic Affairs and the Directorate General
of Customs under the Ministry of Finance to
bring in heavy motorcycles for local sale
beginning on July 1. The EPA's reluctance to
allow such imports into the local market, the
importer says, is the result of a different
interpretation of the relevant regulations.

The importer has joined with other importers to
lobby the EPA, through the Taiwan
Transportation Vehicle Manufacturers'
Association (TTVMA), to adopt a more
favorable interpretation of the rules.

The importer also laments that emissions and
fuel-consumption rules introduced by the
government late last year in effect close
Taiwan's market to over half of all foreign-
made heavy-motorcycle models. Taiwan is the
only country in the world to have fuel-
consumption rules for motorcycles, he says,
and other motorcycle dealers seem to agree that
the rules are unprecedented and will hinder
their business.

The worried importer also warns that most
foreign-made heavy motorcycles will be unable
to comply with the even-stricter emissions and
fuel-consumption standards that are to take
effect in Taiwan in 2004.

Most countries follow the emissions standards
adopted by the European Union, he says, and he
urges the local government not to set up
different rules that will either block the import
of heavy motorcycles or force manufacturers to
make expensive modifications to their models.
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Roc
Posted on Friday, June 04, 2004 - 01:14 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

The line - "Importing for the short term" is great.

I thought the different ways companies were structuring the import of their products into Taiwan was interesting, Honda verses Yamaha and Suzuki.

The article sites membership in the WTO as reason for Taiwan’s push into the big bike market but I think Chinese domination in smaller bike manufacturing is a primary cause too.
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Buellkowski
Posted on Friday, June 04, 2004 - 01:25 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

India also manufactures lots of under-200cc bikes.

Taiwan manufacturing has matured. I would like to take a first-hand look at the Venox; where else can you buy a v-twin cruiser for $3500??
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Crusty
Posted on Friday, June 04, 2004 - 01:46 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I would like to see what a Kwang Yang Motor Co. (which markets under the KYMCO brand) Grand Dink scooter looks like.
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