TAIPEI (TVBS News) — KYMCO (光陽) Chairman Ko Chun-pin (柯俊斌) issued a stark warning on Friday (July 4) that fluctuating tariffs with the U.S. could significantly impact orders for all-terrain vehicles (ATV) exported to America. Ko delivered his remarks at the Taiwan Motor Cycle Show (國際重型機車展), Taiwan's premier motorcycle exhibition, emphasizing the mounting uncertainty plaguing the second-half motorcycle market due to unresolved government tariff and commodity tax policies.
Ko participated in a joint interview session and urged the government to swiftly announce the results of ongoing tariff negotiations with the U.S. to alleviate mounting market and consumer concerns. The chairman emphasized that without clear policy direction, potential reductions in tariffs and commodity taxes could severely disrupt automotive and motorcycle distribution channels across Taiwan.
KYMCO strategically plans to target emerging markets across Africa, the Middle East, and Latin America, with Argentina commanding the leading market share by selling 3,000 to 4,000 motorcycles annually. Ko revealed that Taiwan's motorcycle registration reached 330,231 units in the first half of the year, representing a 5% decline from the same period in 2024. The outlook for the second half remains shrouded in uncertainty amid ongoing policy challenges.
Ko disclosed that KYMCO sells both its branded and original equipment manufacturer ATVs in the U.S. market, with Japanese clients previously ordering approximately 25,000 units annually, generating NT$4 billion (around US$138.7 million) in revenue. This year, orders may potentially halve due to unpredictable tariff policy variables affecting international trade. Taiwan currently imposes a 2.5% tariff plus a 10% reciprocal tariff on exported ATVs, with parts tariffs recently increased to 10%.
Ko added that KYMCO continues advancing its electric motorcycle development, serving over 60,000 consumers with two new models launched this year, while suspending new model development until year-end. The chairman emphasized that profitability critically depends on battery and after-sales service costs, with substantial investments in management platforms and battery swap systems exceeding NT$15 billion (around US$520.3 million) and NT$30 billion (around US$1.04 billion), respectively.
The interview represented Ko's first public media appearance since assuming the chairman position in mid-April, marking a significant milestone in his leadership tenure. ◼
(At time of reporting, US$1 equals approximately NT$28.838)