The steady development of mass transit systems in Taiwan has caused a reduction in domestic sales of motorcycles since 1995. In 2008, sales dropped to just 860,000 units. In response to the shrinking domestic market, the motorcycle industry has started to look to foreign markets for growth. A large number of manufacturers have invested in production facilities in China and Southeast Asia. Motorcycle exports in 2008 did decline 4% over the previous year but exports still made up over 35% of total market.  

With regard to motorcycle exports by country, the top three countries by export amount were Japan, Italy and the United States. Top ranked Japan received US$81,543,000 or 33.83% of total exports. Exports to Italy amounted to less than half that of Japan or US$35,233,000. The U.S. followed close behind with exports of US$30,692,000. Looking at the growth statistics for this period, the U.S. led the pack with 78.06% growth. Canada had the second highest growth, 49.52%. Macao trailed behind in third place with 47.88% growth. Exports to France and England declined the most, dropping over 60%. Exports to Korea and Spain also declined over 50%. From these statistics, it is clear that local motorcycle manufacturers need to invest more time and effort on these markets.

As for the competitive status between nations, the R&D capabilities of Taiwan’s motorcycle industry have proven to be superior to China and India. However, Taiwan’s marketing and post-sales service capabilities are not equal to Japan. Eyeing the future, if Taiwan wants to become a leading player in global markets, Taiwan not only needs to refine their R&D and design capabilities, but also needs to upgrade two key areas, overseas marketing and post-sales service, to effectively raise competitiveness.