Taiwan holds a prominent position in the mid-to-high-end segment of the global electric bicycle industry. With strong brand recognition and high added value, Taiwan serves as a hub for high-end bicycle research and development. The region primarily exports bicycles and electric bicycles to Europe (43.2% of exports) and the United States (29.8% of exports). While exports have been steadily growing, the phenomenon of de-stocking in the low- to mid-tier product segment of the European and American markets led to an unusual decline in electric bicycle exports in 2023. In the first half of the year, both bicycles and electric bicycles from Taiwan experienced a decline in exports. Although export volume decreased, the significant increase in average export unit price has maintained an overall growth trend in export value.
The de-stocking in the European and American markets has had a considerable impact on Taiwan’s product exports. During the inventory adjustment period, brand owners and channel distributors reduced order quantities, resulting in a decline of over 40% in the export volume of both bicycles and electric bicycles in the first quarter.
According to statistics from the Taiwan Bicycle Exporters’ Association, the first-quarter export volume of electric bicycles from Taiwan was 238,000 units, a decrease of 6.05% compared to the previous year. Among them, the export volume of electric bicycles to the United States decreased from 85,582 units to 45,333 units, a decrease of over 47%. This was primarily due to reduced orders for low- and mid-tier E-bikes. In contrast, electric bicycle exports to the European Union increased from 132,000 units to 150,000 units, a year-on-year growth of 13.31%.
Extending the timeframe to the first half of the year, the export volume of electric bicycles from Taiwan reached 447,300 units, a nearly 10% decrease from the same period last year. However, the average export unit price increased to $1,655, a growth of 13%, and the export value reached $740 million, a slight increase of 1.82%. The export volume of mechanical bicycles for the first half of the year was 782,000 units, a 19% decrease from the same period last year. The average export unit price increased to $961.87, a growth of 31.25%, and the export value reached $752 million, an increase of 6.32%.
Looking at mechanical bicycles, the export volume decreased by about 34% from 453,500 units in the first half of the previous year to less than 300,000 units in the first half of this year. Similarly, electric bicycle exports decreased by 34.64% from 148,400 units to under 100,000 units. In the European Union market, the export volume of mechanical bicycles for the first half of the year was 235,400 units, a decrease of only 5.4% from the same period last year. This includes countries such as the Netherlands, Germany, France, and Spain, where the export volume even increased. The export volume of electric bicycles to the European Union for the first half of the year reached 281,500 units, a slight increase of 0.58%. The average export unit price increased by 20.35%. Taiwan continues to hold a significant share in the European high-end product market.
Since the second half of last year, the global bicycle industry has been affected by the Russia-Ukraine conflict, shortages of raw materials, and high inflation, leading to decreased consumer purchasing power. Both complete bicycle manufacturers and component suppliers are currently facing high inventory pressures. These factors have significantly impacted the overall export volume of electric bicycles from Taiwan this year. It is expected that last year’s peak sales cannot be maintained.
In terms of component exports, the main component export value from Taiwan in the first half of last year was $1.5 billion. However, this figure decreased to $1.034 billion in the first half of this year, a decline of 31%.
Industry insiders indicate that the inventory levels in the North American and European markets still need time to be absorbed, with the highest inventory levels observed in entry-level bicycles and low- to mid-tier electric bicycles. In contrast, high-end bicycles continue to be shipped. Most industry insiders estimate that it will take nearly a year for inventory to be cleared. The actual development trend of Taiwan’s exports is expected to become clearer around the Taipei Cycle Show in March of next year.
