Merida looks to be on course to register 30% of its 2018 revenues with electric bike sales, reports the Taipei Times.
Analysts with insight into the Taiwanese bike manufacturing giant have pointed to a steady rise dating back to 2016, when electric bike revenues represented 10% of takings value, through last year when trade values doubled.
In units, Merida last year made 93,000 electric bikes, a healthy jump on 2016’s 57,000. The firm produces models spanning the commute, off road and leisure sectors.
Looking at this year’s figures, the local news site reports that Merida surpassed last year’s tally just seven months into the year, predicting that all production for the year could reach as high as 160,000.
Though not directly affected by the anti-dumping tariff battles being fought between China, the U.S and the EU, Merida is to remain cautious of the wider side effects to the global bike business and to competitive pressures on its margins in future.
Because of its lower exposure to these pressures, Merida is in a stronger position than its closest rival, Giant, whose manufacturing is currently being reshuffled to avoid the worst of any tariff impacts.
In its latest financials, Merida posted sales of NT$15.33 billion ($498.84 million) for the first seven months of the year, representing a 26.36% uptick in sales.
Net income was therefore similarly up, rising 22.98% to NT$550.13 million.
Gross margin fell by 0.51% to 12.04%, while accounts showed operating margin also declined down to 4.62%.