News
Taiwan and Vietnam look to India and Africa for bike plants
Carlton Reid Oct 20 2006, 1:30pm
Comments (1)
Because of anti-dumping duties and other financial factors, the owners of Chinese/Taiwanese and Vietnamese bicycle factories continue to scour the globe for manufacturing locations with more favourable economic conditions.
The Times of India reports that Taiwanese companies are scouting in India for tie-ups with Indian bicycle manufacturers. And VietnamNet Bridge reports that Vietnamese investors are planning to set up a bicycle assembly factory in Angola.
This is expected to cost $3.5m. Operational in mid-2007, the factory will employ 100 local workers. There's no indication whether the bikes assembled in Angola will be for domestic or international consumption.
However, the Times of India says any link-up between Taiwanese and Indian bike companies will be to produce "high-end products, particularly for the European and American markets."
Ying-Ming Yang, who is currently leading a 17-member business delegation from Taiwan, said
"We are quite keen on working with Indian bicycle manufacturers to produce bicycles to catering to the high end market in Europe and USA."
The Indian Bicycle Manufacturers' Association (IBMA) has called on Taiwanese firms to forge alliances in India.
BMA president Satish Dhanda said: "We want them to invest in India in the area of technology and plant and machinery to manufacture high-end bikes, including racing and mountain bikes, and then re-export to Europe, which is the biggest market.
"If the Taiwanese invest in India, they could take advantage of lower anti-dumping duty on Indian exports to Europe as compared to the high duty imposed on Chinese exports."
Europe imposes a 48.5 per cent anti-dumping duty on goods imported from China. The tariff is 34.5 per cent on bikes from Vietnam. India also has a tariff structure in place but the duty is lower, at 10.5 per cent. Production costs and labour are also cheaper in India.
Comments
“bicycle manufacturing”
Posted by: San Jose Enterprise - Sep 17, 11:10am
I suggest you also look at the Philippines. It is a most favored nation with all its export to the USA.
There is no bicycle being manufactured there.