Domestic PTW Sales Zoom Past 760,000 Units in 2003

Sales in Taiwan's domestic powered two-wheeler (PTW) market grew for the second consecutive year in 2003, roaring past 760,000 units. Statistics compiled by the Ministry of Transportation and Communications (MOTC) show that a total of about 764,700 PTWs were sold in Taiwan last year, up 16% from 2002. In addition, the monthly sales volume grew for the 14th consecutive month in December 2003.

The three top positions among local PTW makers remained unchanged last year--in order, Kwang Yang, Sanyang, and Yamaha Motor Taiwan Co. Adding to the joy, both of the two top PTW makers have enjoyed record-high export volumes in recent years; a senior Kwang Yang official says that his company exported about 140,000 PTWs last year, its highest tally ever.

Kwang Yang sold about 259,000 PTWs in the domestic market last year, for a 33.4% share, making it the sales champion in Taiwan for the fourth consecutive year. Sanyang sold about 238,000 units, about the same tally as in the previous year. Yamaha Taiwan, a subsidiary of Yamaha Japan, sold about 221,000 PTWs. The three top PTW brands together accounted for 93.7% of total domestic PTW sales last year.

Sanyang president Huang Kuang-wu says that his company's PTW plants in Taiwan, mainland China, and Vietnam turned out about 558,000 PTWs last year, the highest-ever total, including 272,000 units (for both domestic and export sales) in Taiwan, about 60,000 units in mainland China (by Xiashing Motorcycle Co., Ltd.), and about 225,000 units in Vietnam (Vietnam Manufacturing Export Processing Co. Ltd.).

PTW makers in Taiwan attribute last year's sales-volume growth mainly to the price-cutting strategy adopted by local PTW makers to promote the sales of their two-stroke engine PTW models; strict fourth-stage emission regulations on the island that have come into effect this year meant that production of these models was scheduled to be halted. Sales and production, as a result, were much higher than the norm in last year's fourth quarter, the traditional off-season, and are expected to cool down rapidly in the first half of this year.

Most local PTW makers and industry observers predict that the total sales volume in the domestic PTW market this year will fall to under 700,000 units.

Huang Jiao-hsin, vice president of Tailing Motor Co. Ltd. (in partnership with Suzuki Motor of Japan), says that what must be kept in mind is that the era of the four-stroke engine for PTWs has arrived and that new models are expected to eventually boost sales volume, or at least maintain it at a steady level of about 750,000 units.

2003 Taiwan PTW Market
Brand	2003 December			2003 Jan.-Dec.
	Sales Volume	Market Share	Growth*	Sales Volume	Market Share	Growth
Kwang Yang	20,713	37.3%	36.0%	258,992	33.9%	17.7%
Sanyang	16,560	29.8%	12.0%	237,742	31.1%	16.8%
Yamaha Taiwan	14,155	25.5%	8.8%	220,874	28.9%	13.8%
Tailing	2,703	4.9%	-0.7%	31,220	4.1%	17.5%
Motive Power (PGO)	858	1.5%	40.0%	9,867	1.3%	4.2%
Others	565	1.0%	--	5,980	0.8%	--
Total	55,554	100%	17.4%	764,675	100%	16%

*: Compared with the same month of last year.

Source: MOTC