Taiwan's Powered Two-Wheeler MakersEye Bigger Engines

After more than two decades of development' Taiwan's powered two-wheeler (PTW) industry is able to compete head on' in both quality and price' with the best products the world has to offer. Now' however' manufacturers in the line are diversifying out of their traditional niche of vehicles with engines no larger than 150cc and focusing on bigger models with better functions in order to escape the low-price competition that plagues smaller vehicles.

The development of bigger vehicles has been particularly marked during the past five years' with the diversification of manufacturers into all-terrain vehicles (ATVs). Industry sources that Taiwan is poised to take the No. 3 position among the world¡¦s ATV suppliers' after the United States and Japan' with over 30% of the global market.

One of the problems faced by Taiwan¡¦s manufacturers in the world market is the similarity of their products' which use many of the same basic components. With the exception of a few large producers who have the R&D muscle to develop new and innovative models' local suppliers have to compete on price; and this' of course' puts downward pressure on profits.



Cleaner Engine



Kwang Yang Motor Co. (KYMCO) is Taiwan¡¦s biggest PTW manufacturer' and also boasts the strongest R&D and design capability. The company recently added a series of new models' targeting the international market' to its product line. One of these is a high-end cruising scooter' the Xciting' which comes in 250cc and 500cc versions and features front and rear disc brakes' a new four-stroke' double overhead cam (DOHC) liquid-cooled engine and continuous variable transmission (CVT)' foldable side mirrors' large storage compartment (complete with light and cellphone recharging cable)' light-emitting diode (LED) taillight' aluminum-alloy wheels' and ergonomic seat design.

Another new Kwang Yang product is the Agility 50cc mini scooter with a new four-stroke environment-friendly engine that meets the most stringent emissions regulations. The new scooter¡¦s innovative design includes a separated rear seat that can be tilted into a backrest for the front seat' as well as large wheels (13- and 14-inch options). Another big-wheel model is the Peoples' with a choice of engines: 50cc' 125cc' and now 163cc (called 200cc by the company). The Peoples is already popular in Europe' and the new horsepower option is expected to make it more popular yet.

The firm also plans to put a 300cc ATV model' the Mxu' on the market in late May or early June this year' and a 500cc model¡Xtaiwan¡¦s largest¡Xin early 2006.

Another direction being taken by Kwang Yang¡¦s diversification drive is the development of health-care electric scooters' which it expects to become a big profit-maker in the future. It is one of the few PTW makers in Taiwan that has developed its own electric scooters (others merely assemble them)' giving it a sharp edge in product development.

Late last year the company announced a series of ambitious projects aimed at boosting it into a position of global leadership in the PTW industry. The goal is to enter the top 10 manufacturers within the next few years.

"As one of our initiatives'" reports Chen Fu-an' company spokesman and vice general manager of KYMCO¡¦s administrative division' "KYMCO has mapped out comprehensive and aggressive plans to develop into a major international provider of light power sources by offering integrated design' development' and manufacturing services." Over the next few years' he says' the company will introduce new PTW models incorporating bigger engines' more advanced technology' and state-of-the-art design. Health-care electric scooter production will be expanded' as well the production of KYMCO-brand ATVs. The company will also turn out small engines and related products' such as generators and lawnmowers.

The company is expanding its global production network to meet future needs. It currently operates three PTW plants in Taiwan' two facilities in mainland China (the Changzhou Kwang Yang Motor Co. and Hunan Kinlon Kwang Yang Motor Ltd.)' and one in Indonesia (PT. Kymco Lippo Motor Indonesia). Cooperative ties have been forged with four foreign suppliers of technical support and parts: S.C KYMCO in the Philippines' Hongkings Co. in Vietnam' Saba Pishtaz Motor Inc. Co. in Iran' and Autotechnica Colombiana S.A. in Colombia.

Since KYMCO has become a major brand in many markets' the company is also developing a global service network that is expected to boost its corporate brand image and increase global sales.



Great Motive-ation



Another Taiwanese manufacturer that has developed overseas PTW and ATV markets is Motive Power Industry Co.' which has been selling products under its PGO brand for about 40 years.
Motive Power' which was spun off from a local automaker' engaged in technical cooperation with Piaggio of Italy from 1972 to 1982 for the production of scooters. The Taiwanese manufacturer has since grown into technological independence' and is devoted to the strengthening of its product development and manufacturing capabilities. It is one of the top-five suppliers in the domestic market and is a major exporter of PTWs' ATVs' and buggies.

Among the new products to hit the market this year are a 250cc high-end dune buggy in the first half of the year and a 250cc sport scooter in the second half. The company has also kicked off a big-displacement PTW engine development project in cooperation with a foreign company' the aim being to develop a series of engines with displacements of 250cc and larger for PTWs' buggies' and ATVs.

Motive Power¡¦s marketing manger' Fanny Chen' says that this project is designed to lengthen the company¡¦s lead over its low-price competitors and to escape head-to-head competition with major international brands in the heavy-duty segment of the market.

The marketing manager notes that Motive Power began pushing buggy products in the middle of last year' and that the response from European customers¡Xespecially in France--was enthusiastic.

Last year the company shipped 47'000 vehicles to Europe' the U.S.' and Southeast Asia' along with 20'000 sets of engines' parts' and components to its Malaysian partner Motosikal Dan Enjin Nasional Sdn. Bhd. (Modenas). Vehicle exports are expected to top 52'000 this year' Chen says' and shipments to Modenas will also grow.

Motive Power also plans to add a 250cc version to its 125cc and 150cc G-Max scooters. In addition to the bigger engine' the new option will also feature a car-like six-linkage middle-position cushion assembly' front and rear disc brakes' 13-inch aluminum wheels' and sporty styling. It will also employ the company¡¦s EVO-Turbo exhaust system' which' Chen claims' with dual pipes tuned to the pressure wave of the exhaust so as to reduce the pressure at the exhaust port during the "exhaust valve open" (EVO) period. This improves discharge efficiency and boosts torque.

The 125cc G-Max is already highly popular' winning the Macao Grand Prix 125cc scooter race and the "It¡¦s Very Well Made in Taiwan" award from the Taiwan government.

Chen says that her company enjoys the advantages of "a strong and comprehensive development capability' production flexibility' an d customer-oriented product-development strategy." She adds that Motive Power current employs 55 experienced R&D specialists (out of a total staff of 250) with expertise in a variety of fields from styling and parts development to engine development and testing.

The R&D team helps with the development of vehicle models as well as at least one PTW engine per year. It has worked hard on the development of an electronic fuel-injection (EFI) scooter engine' and succeeded in introducing a 125cc model two years ago¡Xone of the few Taiwanese companies to have such a product.



All-Terrain Vehicles Too



The relatively young New Force Motor Co.' established only in 2001' concentrates on the design and production of ATVs. In this effort it enjoys the support of two affiliates' one that specializes in computerized numerical control (CNC) precision processing (focusing on high-precision auto/PTW electronic parts and the other in cold-forging of automobile and PTW parts (turning out precision transmission gears and parts as well as nuts and bolts).

The company¡¦s chairman' Hsieh Ming-sheng' says that New Force went into ATV production after the group accumulated a solid foothold in both CNC processing and cold forging' and noticed soaring demand for ATVs in the U.S. market. It now has 46 workers who design and assemble the vehicles.

"Both the quality and price of our ATV parts are very competitive because we have a lot of experience in supplying those parts to other ATV makers'" Hsieh notes. The company has introduced ATV models with 150cc' 180cc' 200cc' and 250cc engines; it now concentrates on the development of larger engines' which requires a long-term commitment and constant technological upgrading.

The chairman points out features' other than large engines' that add to the competitiveness of his products: auto-grade double-A suspension which makes offroad riding easier' added safety and comfort' and a reverse gear that is claimed to allow New Force products to go backward much more smoothly than other ATVs.

The company exported about 7'000 ATVs to buyers in Europe' the U.S. and Asia last year; and' with talks going on with a large Italian contract customer' the quantity is expected to experience a large jump soon. "We¡¦re fully prepared to receive big contract orders from major international customers'" Hsieh stresses' "and we offer a comprehensive model line' competitive prices' and high quality." (April 2005) ¡@