INTERMOT Cologne 2008 Sees Major Motorbike Brands Ride Together

The INTERMOT Cologne 2008, the trade show focused on "crotch rockets" and scooters held in Koln, Germany from October 7-12, made progress in all statistical aspects relative to the previous 2006 event. Clearly the German PTW show was important enough a business platform to warrant attendance from all the who's who in the field.

The show organizer Koelnmesse says that 1,068 exhibitors from 36 countries, of which 372 were German-based and 696 from overseas, were at the 2008 event. The largest contingent came from Germany, followed in descending order by Italy, Taiwan, mainland China, the United States, the U.K., Pakistan, the Netherlands and France.

Virtually all the high-profile brands, including BMW, Honda, Kawasaki, Suzuki and Yamaha were represented in Cologne, as were the major Italian manufacturers: Benelli, Ducati, Husqvarna, Malaguti, Moto Morini, MV Agusta, and the Piaggio labels Piaggio, Vespa, Aprilia, Moto Guzzi and Derbi. And it is debatable why the American legend Harley Davidson chose not to show its wares against the other big bike makers, although the reeling American economy likely has throttled the historical bike brand's global marketing plans.

As expected and taken for granted as likely the most-affordable way on two-wheels to escape from mundane reality, the INTERMOT Cologne drew more than professionals tradesperson of the over 200,000 visitors from 110 countries, with about a respectable 30% being on business, of which 35% came from outside Germany. INTERMOT Cologne is the most important business event for the German and international specialist trade, Koelnmesse says.

INTERMOT Cologne displayed a variety of bikes with stronger, safer, lighter, easier to handle, high-tech features; while the innovation centre and the outdoor test track showed alternative riding concepts and allowed visitors to try electric motorbikes. In addition, other product categories as accessories, clothing and parts were showcased.

Who's Who

Expectedly the market shares of bike labels varied proportionally with the floorage booked at the INTERMOT Cologne: Honda outdid Suzuki, Yamaha and Kawasaki to showcase its full-range of products and its new Honda V4 concept bike, with the latter two topping BMW's floor area, but not if one takes into account the German's newly acquired Husqvarna.

Given that only 30% of the visitors were tradesperson, the show organizer made sure that the content was amusing enough to keep people occupied. The 75,000-plus square meters of the outdoor venue boasted a variety of spectacular shows, races, and stunts, as well as interactive activities. Enthusiasts were allowed to test ride 200 brand-new models of bikes and scooters supplied by different brands, including endures to street bikes and cruisers, as well as scooters, all terrain vehicles (ATVs), and electric scooters.

The IVM (Motorcycle Industry Association) played a part to promote motorcycling and proper ridership: kids and teens without licenses were given first rides under the supervision of professionals.

The INTERMOT Cologne 2008 staged its first Cologne Custom Championships, where the winning bikes from the categories Chopper/Cruiser, Fighter, Sports Bike and Scooter were showcased. Christoph Madaus won with his Twin Trax and received not only a 5,000 euro prize but also qualified to compete in the Customizing World Championship in Sturgis, South Dakota.

Sizable Turnout From Taiwan

The third-largest exhibitor group came from Taiwan or 125 firms, but actually numbered over 140 when including those booths representing assembled-vehicle makers from the island that were registered by their agents or importers in Europe.

Judging from booth size and quality, Taiwan exhibitors at the INTERMOT Cologne seemed to be riding bikes of increasingly innovative, competitive presence in the global industry. Taiwan-based makers of complete-vehicles occupied booths equaling their second-class global counterparts; while their scooters and ATVs clearly were world-class competitors, especially in Europe.

A ray of promising news, despite the global financial debacle, came from many executives of Taiwan-based PTW makers, that customers who look to running stable, sustainable business have been returning with their orders, which had been given to mainland Chinese rivals for lower costs. Such strategic change has come at a price: many global distributors have learnt the hard way, likely having suffered losses from buying rocky quality PTWs from mainland Chinese suppliers who typically also offer no after-sales services. The moral of the wake-up call is that the powersports business cannot be handled like IT or sundries, with price being the bottom-line. A byproduct of such reassuring trend is that the major Taiwanese brands as KYMCO, SYM, TGB, Adly, PGO etc. are successfully building brand image via delivering quality, hence reinforcing customer loyalty more than ever.

Blessing in Disguise

Ironically skyrocketing gasoline prices since mid-2008 have been a blessing in disguise: the PTW sector in Taiwan saw sales climb over 60% in both the United States and Europe, with most makers on the island seeing clearly increasing, urgent orders.

A PTW is only as good as the sum of its parts, which certainly applies to the overall upgrading of the global competitiveness of the PTW sector in Taiwan, which owes its progress to the improving parts suppliers. Many world-class parts makers from Taiwan showcased goods at the INTERMOT Cologne, pushing an undercurrent of integrated strength that trails only that in Japan.

One sign of the world-caliber parts capacity held by Taiwan-based makers was, among the Taiwan exhibitor group, the exhibitor supplying gauges to Bimolta, a brand associated with ultra-expensive super sport bikes, with other suppliers from the island showing top-end forged aluminum wheels; high-precision parts to premium motorcycle brands in Europe; world-class tires; high-end, innovative riding accessories as carbon-fiber helmets; upscale riding gear etc.

Ideal PTW Base

Taiwan actually offers a spate of advantages as a base to develop the small PTW sector. The island has a sizable domestic market (about 800,000 to one million scooters per year) to achieve economy of scale, having attracted Yamaha and Suzuki to move all under-150cc scooter and ATV productions to the island; a well-established supply chain with division-of-labor that achieves total in-house production; sub-two-hour commute north-to-south via the high-speed rail for business meetings; relatively high-quality labor in Asia; versatile, comprehensive, and innovative suppliers of tuning parts and accessories; and especially in recent years, small-volume, large-variety production flexibility. Plus Taiwan boasts builders with burgeoning skills in developing powersports engines displacing under 1,000cc, with launched models driving motorcycles, scooters, ATVs, UTVs (utility vehicles, or side-by-side in North America), or even mini cars.

Flaws exist, as agreed among most industry experts and makers themselves in Taiwan, in that more effective integration among makers on the island, as well as more meeting of minds with European and American companies. George Lin, president of Taiwan Golden Bee (TGB), says that the relatively-smaller European and American brands need to be told to refocus marketing, with such suggestion based on the acknowledgement that potential foreign partners possess the most advanced designs and concepts, technologies, brand cachet, leader-of-the-pack products etc., many of which, ironically, are too expensive or overkill for average riders.

Most Taiwan PTW makers lag behind their European and American counterparts in terms of advanced technologies, which are often developed in the long-term, Lin stresses. But if the two sides can communicate to recognize, tap mutual advantages, European and American makers can achieve originally neglected edge to more effectively compete against domineering Japanese rivals; as well as for Taiwan suppliers to evade underselling by Asian and mainland Chinese makers, and compete for bigger market shares long held by Japanese brands.

"Such communication and cooperation between Taiwan and European, American companies is not a breeze, but neither as difficult as many presume," Lin says. "We anticipate more interactions among makers in different continents, more mutual understanding, and more chances ahead for us."