Chinese Rivals Shape Taiwan’s ATV Offerings
August 25, 2006
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Taiwan’s major ATV manufacturers say the pricing of small displacement quads built in mainland China has been a force fueling the island nation’s producers into developing larger displacement models.
Representatives of Kwang Yang Motor Co., Ltd. (KYMCO), Sanyang Industry Co., Ltd. (SYM), Her Chee Industrial Co., Ltd. (Adly) and Armstrong Industry Corp. (AMS) told the China Economic News Service that competition from underselling rivals from mainland China has led to increased development of larger displacement quads in Taiwan.
China-made ATV models often have more than a 30 percent price advantage compared to Taiwan-made counterparts, the ATV producers in Taiwan told CENS. The executives said companies in China have been exporting under-150cc ATVs priced between $400 and $1,000.
With annual sales of about 100,000 units, Europe is the second-largest ATV market following the North American market. Using Europe as an example, the producers said Taiwan’s ATV export volume there during the first seven months of the year declined about 30 percent compared to the same period in 2005, while the average selling price fell by at least 10 percent.
KYMCO, a leading supplier of ATVs to the United States, currently offers seven quads ranging from the sporty Mongoose 50 youth model to the MXU 300 Shaft Drive. A MXU 500 utility unit is expected in dealerships in October.
“The Chinese have certainly tried to make an impact in the United States over the past year,” KYMCO USA President and CEO Eric Bondy told Powersports Business. “Their focus has been on penetrating the market below 150cc with very inexpensive products.
“Price is only one part of the value equation and it is very unclear at this time if these products will be successful with the American consumer as their quality and durability is very suspect. However, while Taiwanese exports of ATVs have declined worldwide, our sales in the U.S. continue to climb.”