Motor Trader 2023

Peter Chu From the Publisher T he total sales volume for scooters in Taiwan in 2022 is estimated to fall under 800,000 scooters, hitting a record low in nearly seven years. The sluggish buying sentiment is due to various severe challenges such as the surging costs of raw materials, the end of subsidies to replace old scooters with new ones, and the shortage of chipsets. Nonetheless, the most fundamental reason is the economic distress that affects public willingness to buy. Research Center for Taiwan Economic Development announced the Consumer Confidence Index (CCI) for December, 2022 as 59.12, hitting the lowest point in 13 years. The continuous lift of interest rates by the U.S. severely affects family finance, cutting down unnecessary consumption expenditure and afflicting the exports of all countries. Under the global economic downturn, the market outlook of scooters for 2023 is generally pessimistic. According to the statistics released by the Ministry of Finance, the exports from Taiwan in November declined by 26%, compared with the same period last year. It is estimated that the overall economic condition will start to recover after the FED cuts the interest rate. In spite of the 2023 economy being projected to be recessive, only the careful observation of industry movement can grasp the business opportunities of the market. All countries are targeting 2050 net zero goals. As COVID-19 changes the habits of commute, the rising awareness of environmental protection and the subsidy policy have urged the EU to demand more for electric bicycles. The Ministry of Economic Affairs pointed out that the electric bicycle of Taiwan topped the first place in the market share of the EU in the first nine months of 2022, accounting for 53.1%. For this reason, the market potential of an electric vehicles will continue to be on a roll. Many scooter makers are aiming at the general trends to access the markets of electric scooters and electric bicycles. In Taiwan, after the Government takes control of micro-electric scooters, KYMCO and CMC eMOVING are muscling through the market for micro-electric scooters, which accounts for 10% of the domestic scooter market share. Gogoro will partner with local enterprises in the Philippines to introduce the battery exchange system and smart e-scooter into the Philippines market. The development of the electric scooter industry is already unstoppable and the growth is promising. 2023 The premier motorcycle & parts buyer’s guide 10