TAIPEI (Taiwan News) — Scooter maker Kymco said Friday that unclear tariffs with the US could disrupt orders for its ATVs, adding to a shaky two-wheeler market in the second half of the year.
Kymco Chair Ko Chun-pin (柯俊斌) described Taiwan’s scooter market as weak, with registrations down 5% in the first half to 332,000 units, saying many consumers are holding off purchases in anticipation of potential tariffs or tax cuts, per CNA.
“Tariffs definitely have a major impact,” Ko said, noting that uncertainty has disrupted buyer confidence. He pointed to Kymco’s US ATV business, which sells branded and OEM models, as a prime example of risk.
In previous years, Japanese clients ordered around 25,000 OEM units annually, worth about NT$4 billion (US$138.23 million), but tariff fears could cut that demand in half, per Liberty Times. Currently, Taiwan-made ATVs face a 2.5% US tariff plus a 10% “reciprocal” tariff, with parts tariffs rising to 10%, Ko explained, putting significant pressure on pricing and profits.
Ko said the recent appreciation of the Taiwan dollar has had only a minor impact on OEM exports since exchange rates are adjusted quarterly. However, shipments under Kymco’s own brand are more exposed, though the euro-based European market remains relatively stable.
On electric scooters, Ko confirmed that Kymco launched two new models this year and will focus on hitting its sales targets without further launches before year-end. Despite having over 60,000 electric scooter customers, he acknowledged that profitability is challenged by battery costs and after-sales support.
Ko urged the government to finalize tariff negotiations with the US as soon as possible to reassure markets and consumers, warning that abrupt tariff or tax cuts could further shake up distribution channels.
