Giant and Merida both delivers strong revenue in “bike boom”

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Taiwan-based bicycle maker Giant Manufacturing Co. Ltd. (巨大機械) and Merida Industry Co. Ltd. (美利達工業) revealed January revenue reaching NTD$ 6.571 billion with a 38.38% yearly increase and NTD$ 2.129 billion with a 26.62% yearly increase respectively.

Though fears soared as covid-19 swept through different industries, the bicycle industry may have been spared as walking and cycling gains higher profile over travelling on crowded public transportations, leading to a so-called “bike boom”.

According to Giant, global demands for bicycles and e-bikes are strong. In both the US and China markets, revenue grew multiple folds. Sales in Europe also increased by over 40% compared to the same period last year. 

Merida reported selling 85 thousand units this January, with a yearly growth of 44.09%.

A continuous growth following the total revenue of Giant last year hitting a historical high of NTD$ 70 billion, a yearly growth of 10.41%, can be seen and is predicted to drive sales all the way through Q3 of 2021. The leading bicycle maker dated the rising demands back to Q2 of 2020.

Merida, on the other hand, miscalculated scaling exports taken the pandemic into consideration resulting in a shortage of component supply when demands were high in Q3 of 2020.

However, Merida sales continued to grow in double digits in Q4 last year, with yearly revenue of NTD$ 27.092 billion, a slight 3.33% fall from the previous year.

Based on a large number of deferred orders for various bike modules leading all the way to 2022, Merida can also foresee a prosperous 2021.

The global e-bike market is also expected to boom, growing at a compound annual growth rate of 6.21% according to Research and Markets forecasting period between 2020-2025. 

It is worth paying attention to future transportation schemes as the pandemic gradually cools down.

 

Source: Comercial Times, udn

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