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Roc
| Posted on Friday, June 04, 2004 - 12:59 pm: |
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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: |
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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: |
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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?? |
Crusty
| Posted on Friday, June 04, 2004 - 01:46 pm: |
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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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