The year 2023 marked a significant downturn for Taiwan's bicycle industry, primarily due to overstocking by European and American clients during the COVID-19 pandemic. This led to a year-long effort to clear excess inventory. Taiwanese e-bike exports in 2023 plummeted to 686,500 units, representing a 33.74% decrease from 2022. Traditional bicycle exports also declined sharply from nearly 2 million units to 1.32 million, while related parts exports saw a 40% reduction.
Since 2019, the European market has experienced a notable shift, with traditional bicycle sales declining significantly while e-bike sales continuing to grow. In the U.S. market, data suggests that it was the first to face supply surpluses and downturns following the pandemic-driven demand surge. However, it is also expected to be the first market to recover from inventory pressures. Inventory levels in the U.S. decreased from a 12-month supply in December 2022 to 10.7 months in January 2023, approaching the normal level of around six months.
Facing simultaneous declines in bicycle, e-bike, and parts exports, Taiwan's bicycle industry is under significant pressure. To address these challenges, the Taiwan Bicycle Association (TBA) is actively promoting six transformative platforms. The TBA’s future goals include "transitioning to a new future," "creating a new ecosystem," "exploring new business opportunities," and "jointly achieving new sustainability." As market inventories eventually deplete, the critical question remains: Will the industry be ready when demand rebounds?
E-bikes have become a dominant product in the global market, accompanied by increasingly stringent regulations. On August 17, 2023, the European Union announced the new Batteries Regulation, which took effect on February 18, 2024. This comprehensive law covers the entire lifecycle of battery products, from procurement and manufacturing to use and recycling, with detailed specifications for each stage.
The regulation mandates that batteries be removable, recyclable, properly labeled, and subject to due diligence. Starting in 2026, electric vehicles, light transport vehicles, and rechargeable industrial batteries exported to Europe must bear compliant battery labels. By 2027, the introduction of the battery passport system, complete with QR codes, will require disclosure of the carbon footprint across all lifecycle stages of batteries.
As a key player in the global mid-to-high-end bicycle industry, Taiwan must proactively adapt to these evolving EU regulations. The Taiwan Bicycle Association (TBA), in collaboration with the Cycling & Health Tech Industry R&D Center (CHC), Industrial Technology Research Institute (ITRI), and relevant public sectors, is spearheading the development of a Light Means of Transport (LMT) battery passport platform. This initiative includes efforts to construct a 'public cloud' infrastructure, emphasizing its impartial stance and ensuring fairness for all stakeholders in the industry.
This initiative aims to unify industry consensus and encourage early participation. The platform will ensure comprehensive lifecycle records for LMT batteries, encompassing production carbon emissions, distribution management, maintenance, warranty, and recycling tracking. These efforts are geared towards meeting future international battery regulatory requirements.
Furthermore, the TBA and CHC are engaging with industry stakeholders to refine the operational and service models of the battery passport platform. Discussions focus on critical aspects such as platform architecture, data access protocols, cybersecurity measures, and long-term maintenance strategies. The goal is to develop a feasible mechanism that garners widespread industry support, positioning Taiwan's bicycle industry at the forefront of regulatory compliance and sustainable innovation.
While navigating these challenges, Taiwan's bicycle industry remains committed to sustainable growth and innovation. The sector is positioning itself strategically for future opportunities within evolving regulatory landscapes. As the industry actively responds to new regulations, Environmental, Social, and Governance (ESG) principles and sustainable development continue to be its paramount missions and challenges.
The global bicycle industry acknowledges a fundamental truth: We have only one Earth, no Plan B, and no Planet B. This reality underscores our collective responsibility to join hands in protecting our irreplaceable planet. By embracing this fact, we commit to ensuring a sustainable future not just for our industry, but for the world at large.
