A Taiwan-based bicycle company witnessed a 45% decline in pre-tax profits in 2023, but it is still “optimistic” about the long run and sees e-bikes as a major way to “broaden global cycling population”
With sales down 16% and pre-tax profit nearly halving, Giant has released its financial report for 2023 and warned that the bike sector has continued to be negatively impacted by sluggish demand and the continuous “challenge” of surplus inventory. Although there should still be hope for the “long-term development of the cycling industry,” the bike brand that unveiled the “lightest, most efficient” version of its flagship road race bike, the TCR, last week predicted that the cycling industry will continue to face challenges from a difficult economic climate, weak demand, and excess inventory.
The demand for entry-level and mid-level items was particularly low in Europe and North America. Giant said that, in contrast, the Chinese market “saw huge growth in bicycle sales,” but this was insufficient to offset the decline in sales elsewhere.
Sales at Giant declined 16.4% to NT$76.95 billion, and net profit before taxes decreased to NT$4.8 billion (45.1%). The profit amount after taxes decreased by 41.8% to NT$3.4 billion.
Giant is eager to emphasize the benefits of e-bikes despite their drawbacks, stating that they remain the “main growth driver in the cycling market.”
Sales of e-bikes accounted for nearly one-third (30%) of total sales in 2023, and the manufacturer sees potential to “broaden the global cycling population” in this market.
“E-Bikes not only align with the current green energy trend but through product diversification, new innovative products developments and offerings would cater more towards consumers’ lifestyle and broaden global cycling population,” Giant said.