chinamtb 08

With the current economic crisis easing slightly and the U.S dollar hitting a 2 year high against the Euro and the Indian Rupee dropping “we could expect to see a surge of interest in India as the new major manufacturing base” Says Indian analysts.

Over the last year, the rupee has lost a big 10.20 to the dollar. This is in complete contrast to the strength of the rupee that was witnessed for over five years, between mid-2002 and end of 2007. So far this year itself, the Indian currency has lost nearly 21% against the dollar. Market analysts claim that the pressure on the rupee will continue.

The Indian Bicycle Industry are hoping this drop could see manufacturers taking there operations to Indian and taking advantage of the current strength of the Dollar.

(Bike Europe.com) The question whether the global financial crisis will affect the Chinese economy is no longer doubted. The question is more on how and to what extend the Chinese bicycle industry will suffer.As the factory of the world, the Chinese can already see a sharp decline in demand for consumer products from abroad while the local market is more and more demanding higher quality products.

Bike industry affected

Next to all that, anonymous sources in China indicate that the Chinese central government is reorganizing the local industry. Following the environmental commotion caused by the Olympics the Chinese government stands at the basis of closing down polluting companies simply by denying them credit. Numerous suppliers of the bike industry (like painting facilities) have been affected by this measure.

On top of that bike industry is no longer considered as a priority industry by the central government and with that it has become more and more difficult for bike companies to get access to financial resources. As a result, Chinese bike companies are insisting on advanced payments by its foreign customers.

It is not only the bicycle industry that is confronted with economic set-backs. Last Saturday Premier Wen Jiabao said, “We must be aware that this year would be the worst in recent times for our economic development. The global downturn will continue to pressure the Chinese economy, which already faces a number of problems.

The (global economic) situation is worsening, and the negative impact of the volatile international market on the Chinese economy would become more obvious as the days go by.” China’s economy expanded by 11.9% in 2007, but the growth rate slowed to 9% in the third quarter of this year, prompting many experts to suggest that the government take prompt steps to bolster economic growth.

Expand domestic consumption

Last week, Liu Tienan, China’s Vice Minister of the National Development and Reform Commission, called for more government efforts to expand domestic consumption amid the global economic uncertainty while the fundamentals of China’s economy are sound. He also stated that China should step up efforts in industrial restructuring, innovation and changing its development mode.

Clear indications of less confidence in consumer spending are reported drop in value of contracts signed at the China Import and Export Fair in Guangzhou during the last two weeks. The overall volume has gone done by one third. It is reported that especially volumes in toys, furniture, hardware, tools, machinery, vehicles and spare parts declined.

At the Trek suppliers’ summit that took place today in Taichung, Trek CEO John Burke stated that 2008 is going to be record breaking year for Trek. The company is not suffering from the financial crisis what so ever and has booked a revenue of US$ 725 million up to the end of October. In 2000 Trek had an annual turn over of US$ 300 million. At the meeting with all the suppliers John Burke said that he has high hopes for the near future of his company as well as the bike business despite the financial crisis. He expects that once again like at earlier economic crisis the bike industry will prove to be rather immune for the economic troubles. Even in October Trek worldwide sales were up 7.2%.

Taiwan, December 6th-10th is the date for this years Rideon on product launch. Expect to see some amazing new products from Fox Suspension, Pedros, Crank Brothers, The Hayes group (which includes Sun Ringle and Manitiou), FSA, Magura, Mavic and others.

Although the show is this year (08) the product presentations won’t before 08-09 items but instead 2010!! So keep your fingers crossed for hover wheels from the brothers Crank, brakes controlled by your mind from Hayes and Magura and expect a fork with working adjustment from Manitiou (best not to expect much from these guys).

If you want more info on the show check the official web page here: Rideon 08

After years of unprecedented growth the export of bicycles from China is now leveling off. According to China’s national customs office 30.43 million bicycles were exported in the first half of 2008. Compared with the previous first six months this is a slight 1.8% drop in units.

However, looking at the value of the export than the picture is completely different as it shows a two-digit 12% increase to a total of US$ 1.28 billion (€ 904 mn). Electric bicycles are not included in these figures.

During the first six months of 2008 China’s export of electric bicycles dropped 1.3% in units to 695,820 e-Bikes. However, like bicycles also the export of e-bikes upped big time in value. Even an over 57% plus was recorded by the national customs to a total export value of US$ 123.09 million (€ 86.9 mn).

By the way when looking at the total export in units and in value then the average export value of an China e-Bike stood at about € 125. For a complete e-bike including battery, hubmotor, torque sensor etc. such a price level raises question marks in particular on quality. But one has to take into account that China’s e-Bike export wasn’t focused on Europe alone with its high demand for quality products but includes all export countries.

Sram have recently released news that they are planning to move in to the wheel sector. It looks like they’ll have both road and mounatin bike wheels in development soon.

To successfully enter this new segment, SRAM recently appointed Bastien Donzé as SRAM Wheel Product Manager.

Bastien Donzé is no stranger to the wheel and bicycle industry, as he has spent the last eight years working for Mavic in France. He will be working closely with Road Category Manager Charles Becker.

If the wheels will be anything like the rest of the components Sram are putting out there, I think we’ll all be in for a treat! Truvativ Freeride and Downhill wheels anyone?

There are mini’s, and mini skirts, and mini bikes, but this is the coolest mini of all in my opinion! A mini Skidoo!

• 80cc air cooled engine with a top speed of 35km/h
• Gross weight of only 68kg
• 1.5 liter fuel tank
• 150mm ground clearance

Yes, its summer, but just be glad we told you now so you have enough time to save up for winter.

If you or your company is interested in importing the Mini Skidoo or any other gas/electric/person powered vehicle send us an email stating your needs to: andi@chinamtb.com.

Electric Go Kart:

This little electric powered kart can travel up to 30km on a single 5 hour charge and can reach speeds of up to 50km/h!! The whole unit weighs in at 65kg with batteries and can carry up to 110kg. The great thing about this kart is that you can have all the fun of a regular gas powered kart but without the mess (oil leaks, gas fumes) without the noise and with added safety for younger users.

Emoto:

Again weighing in at 65kg this little belt driven electric bike can easily carry riders up to 65km on a single 6 hour charge and can reach speeds of 35km/h.

If you or your company are interested in either of these products, or have a request for other bicycle/electric vehicles please feel free to contact me: andi@chinamtb.com. You can also visit the service page for more information about us.

Seems that RST have ran in to a few problems regarding their new award winning long travel fork. The Storm range of forks  have been doing the rounds for a few seasons and stick to RST’s basic but effective design plan ‘If its meant for freeride it will be strong but heavy, if its for XC it will be super light and durable enough for XC race’. It sounds like an obvious business idea, but more and more companies have put time and money in to dropping the weight of their big hit forks, but all this usually does is  increase the price and sometimes effect the performance and longevity (Manitou) of the fork. RST stick to a budget and build the best fork they can for that price bracket.

The Storm LUX was looking to be their big break back in to the major leagues. It boasts more than 150mm of travel on  a strong and stable chassis. Rebound and compression control, air springs and a remote travel adjust. Unfortunately the boys and girls over at Bionicle, a German company known for their travel adjust bikes and forks, didn’t take to kindly to RST’s design approach and claimed it breaches their patents. We at CMTB believe the only issue is that the RST uses a remote controlled system, and if they drop the handle bar lever could get away with it (is that what KOWA did?).

Let’s hope RST get this solved one way or another and get the LUX on to the production line, it could give the big boys a bit of a shock and run for their money.

The main topic  on everyones lips at this years Shanghai Bike Show, is the current lead time problems throughout the industry.

This years show has already attracted a huge number of buyers trying to find an alternative source for their products, due to supply problems.

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