PTW makers adopt varied strategies to counter strict emission...

PTW makers adopt varied strategies to counter strict emission
regulation in Taiwan.
07 October 2003
Taiwan Economic News
(c) 2003 China Economic News Service

Powered two wheeler (PTW) makers in Taiwan are adopting different
strategies to make their products pass the fourth-stage emission
regulation set by the government.

According to the PTW makers, the fourth-stage emission regulation,
reportedly the strictest such rules in the world, will be put into
forth in January next year. The stricter-than-ever regulation is
expected to make all the two-stroke 50cc PTWs currently sold in the
domestic market fail to pass relevant rules and face a crisis of
production suspension.

Though some makers, including Kwang Yang Motor Co., Ltd. (with the
KYMCO brand) and Sanyang Industry Co., Ltd. (SYM) once launched four-
stroke 50cc scooter models to test the market, yet their efforts were
deterred by the customers' complaints about the relatively low
horsepower output of such engines.

Facing the new challenge, Kwang Yang recently announced that it would
adopt the most advanced Kwang Yang direct injection (KDI) fuel-
injection technology jointly developed with an internationally famous
partner, Orbital Engine Corp. of Australia, on some new 50cc and
100cc scooter models scheduled to be launched early next year. Kwang
Yang claimed that the new KDI technology, developed after seven years
of cooperation with Orbital, can pass both Taiwan's fourth-stage
emission regulation in 2004 and Europe's third-stage one scheduled
for 2006.

According to Kwang Yang, the KDI technology adopts an eight-bit
engine management system (EMS) chipset to compute the best fuel
injection time point for utmost fuel-burning effect. Such technology
can greatly advance a PTW engine's fuel efficiency and reduce the
emission volume.

Kwang Yang admitted, however, that the new technology would incur an
additional production cost of NT$6,000 to NT$9,000 (US$178 to US$266
at US$1: NT$33.8) on each new PTW model produced. The Taiwan PTW
maker said that it would first apply the new technology onto a 100cc
model and then, a 50cc.

Yamaha Motor Taiwan Co. (Yamaha) said that production of all its two-
stroke 50cc scooter models would be halted by the end of the year and
the Taiwan subsidiary plans to adopt a new engine cooling technology
developed by its Japanese parent on future's 50cc four-stroke
engines. Yamaha Taiwan claimed that the advanced engine water-cooling
technology can effectively elevate a PTW engine's heat-dissipation
capability to upgrade horsepower output. The company added that a new
four-stroke, water-cooling 50cc scooter model would be unveiled in
the domestic market in February next year at the earliest.

Yamaha Taiwan stressed, however, that the retail price of the water-
cooling 50cc scooter might surpass NT$40,000 (US$1,198), which is
already very close to that of a general 100cc model, so it would
carefully determine the best timing for launching the new light
scooter model in the market.

Tailing Motor Co. Ltd. (in partnership with Suzuki Motor Co. of
Japan), however, said that it plans to introduce Suzuki's popular
mini scooter model, the Choi Nori, for local production. The Choi
Nori is a new 49cc four-stroke mini scooter model featuring simple
technology and cheaper components. Tailing said that the retail price
for the Choi Nori in Japan is only NT$20,000 (US$592)-less, which is
about 40% cheaper than any of its competitors. Tailing expects to
introduce the mini scooter model to the island and attract all the
potential buyers of light scooters, electric bicycles and scooters.

Tailing said that the prices of some four-stroke entry-level 100cc
scooter models have been compressed to a very low level to attract
most of the 50cc buyers.

((QL)).