TMCnet News
Taiwan ATV Makers See Continued Growth in 2006(Taiwan Economic News Via Thomson Dialog NewsEdge)With the global all-terrain-vehicle (ATV) market growing at double-digit rates every year, most of Taiwan's manufacturers in the line are pouring increasing amounts of money into R&D in a bid to keep their own ATV sales growing Almost all of the island's major makers of powered two-wheelers (PTWs), including the Kwang Yang Motor Co. (KYMCO), Sanyang Industry Co. (SYM), Her Chee Industrial Co., and JI-EE Industry Co., began diversifying into ATV production a few years ago. After gaining a foothold in the market with models no larger than 150cc, they moved on into ATVs with 250cc, 300cc, and 500cc engines The Armstrong Industry Corp., a subsidiary of the Hota Industrial Manufacturing Co. (a leading producer of automotive/PTW precision gears and transmission systems), began developing ATVs around two years ago and is pouring NT$40 million to NT$50 million (US$1.25 million to US$1.56 million at NT$32:US$1) into the development of 300cc, 350cc, and 400cc models this year. The 300cc model will be introduced in June, the other two late in the year The company claims to have received original equipment manufacturer (OEM) orders from a number of overseas customers, and aims to export 20,000 ATVs this year. This is up sharply from the 13,000 units exported in 2005 KYMCO, Taiwan's top maker of PTWs, says that it is investing over NT$100 million (US$3.13 million) in R&D aimed at developing (among other projects) improved 300cc and 500cc models. Assembly on the new 300cc model began at the firm's Taiwan plant this February The company plans to turn out about 4,500 units monthly in the first quarter and 4,500 units monthly in the peak-season second quarter. Orders currently in hand indicate that KYMCO's total ATV shipments will amount to around 63,000 units this year, up from 40,000 units in 2005 About 80% of KYMCO's ATVs (all of which are sold under its own brand) are exported to Europe, where the company has extensive distribution channels. Models 250cc and under account for about 60% of overall exports, while 300cc and 500cc models make up the rest Her Chee, another PTW maker, sells both PTWs and ATVs under its own and OEM brands. The company has plans to pour about NT$150 million (US$4.69 million) into the development of its vehicles. It has already completed the development of two 250cc ATV models and will soon start mass producing them, says Her Chee vice president Wang Chao-chin Due to uncertainties about the rising cost of raw materials such as rubber and aluminum as well as price-slashing competition from rivals in mainland China, India, and South Korea, however, the company is conservatively predicting that this year's exports will remain roughly at last year's level of 30,000-some units. SYM, Taiwan's No. 3 PTW brand, is targeting exports of 17,000 ATVs this year, with 250cc models accounting for about 70% and 180cc models the rest Tailing Motor Co., which has been chosen by Suzuki Motor Corp. of Japan as one of the most important partners in the latter's global division-of-labor program, expects to export about 80,000 Taiwan-made ATVs under the Suzuki brand this year. The Taiwan company recently completed development of a 500cc four-stroke ATV, which will soon go into mass production mainly for export to the U.S. (Feb. 2006) 2006 Export Targets of Major Taiwan ATV Manufacturers Company Export Target Main ATV Products KYMCO 63,000 ATVs (320,000 units total) 300cc and 500cc models Her Chee Over 30,000 (3,000 to Europe) Two new 250cc models ready for export; developing 300cc, 350cc, 500cc models Tailing 30,000 (plus 80,000 PTWs) Completed development of 500cc model for U.S. market SYM 17,000 (plus 120,000 PTWs) Mainly 250cc models Armstrong 20,000 300cc, 350cc, 400cc models Source: The manufacturers |