Taiwan Motorcycles Market in September new motorcycles sales (including local made and imports) have been 90.205 (+46.5%) ending the Q3 with a +20.2%. In the first three quarters of the year sales have been 664.595 (-5.9%).
September two-wheelers sales figures
Following an almost negative first part of the year, the government incentives to stimulate the economy and the motorcycles industry have pushed up the demand in the third quarter, allowing the industry to partially recover.
Following the already positive previous months, in September new motorcycles sales (including local made and imports) have been 90.205 (+46.5%) ending the Q3 with a +20.2%.
In the first three quarters of the year sales have been 664.595 (-5.9%).
Looking at figures by CC-Class, the 251-500 and the 501-750 segments were fast growing during the first nine months of 2020. On the negative side, Electric sector is suffering since e-incentives reduction is in place.
Looking at the performance by brand, the market leader Kymco records 236.291 sales in 9 months (-9.5%), followed by SYM with 13.166 units, up an amazing 19.0%.
The third place is held by Yamaha with 131.682 units (-11.9%) ahead of GOGORO with 65.929 units (-23.7%), PGO with 17.112s (-30.0%) and Suzuki with 11.260 (+62.9%).
Motorcycles Market Trend & Outlook
In 2019 the market experienced a massive increase in consumers’ demand, thanks to incentives and subsidies given by the Taiwanese Government, focused on electric scooter segment. The market boomed accelerating during the year as soon as government announced the reduction of incentives scheduled on January 2020.
Thus, following a huge Q4 2019 sales level, the 2020 started struggling with January down 27% and then losing month over month until July, when sales increased back, by a mere 2.3%.
Market Outlook 2020-2025
The reactiveness of Taiwanese government to the Covid19 economic impact was outstanding and the country counted just few cases of virus, the economy was hit by the global economy Q2 fall, before to recover in Q3, thanks to a new stimulus package defined by the government.
In fact, Taiwanese government – aiming to boost the economy – launched printed vouchers to stimulate consumption and August data have been immediately positive.
In the next month, however, the industry will phase an hash year on year comparison, considering the Q4 rush to purchase e-scooter and the market will marginally reduce the lost from the previous year.
In the 2021 sales are foreseen up at least at the 2019 level.
Electric Motorcycles Subsidy Plan
The Environmental Protection Agency ’s (EPA) draft electric vehicle subsidy changed the subsidies policy for both cars and motorcycles, reducing new purchases by 6.000 yuan (US$850).
From next year, new electric motorcycles/scooter subsidies will be reduced from 10.000 yuan (US€1.427) to 7.000 yuan (US$1.000) with a further reduction at 5.000 yuan in the 2021. This plan assumes that the strong incentives provided so far already helped the manufacturers to create scale economy in the production.
Indeed, the incentive provided so far helped the boom of local start-up Gogoro and incentivized the other players develop a their own electric scooter lineup, with this segment already up a significant share of market, the highest in the World.
Taiwanese Market Heritage
Taiwan is the home-base for well-known global motorcycles companies, like Kymco and Sym and is one of the major motorcycles and scooter producer in the World. However, the domestic market is even one of the Top 10 largest worldwide and the motorcycles are a key device for individual mobility.
The development of the market started already in the ’80 of last century, but the key factor for the industry development was the joining of WTO agreement in the 2002, which pushed the industry to improve standards to match requirements of European and American markets and to allow at the local producer to defend their domestic positions against the arriving importers.
Indeed, an almost favourable legislation has limited the distribution of large size motorcycles. So far, the market is dominated by local producers, with Yamaha and Suzuki producing in the country.
Interesting to note as the global leader, Honda, is not producing locally limiting their activity to the distribution of large motorcycles. Indeed, Honda had begun local production of small-sized motorcycles in 1961, mainly 125 cc-class models, in the form of a technology licensing agreement with a local company (under a technical collaboration agreement) and continued until 2003, when has closed operations.