As the notebook industry is seeing declining shipments, Taiwan-based battery maker Simplo Technology is now eyeing the automobile, motorcycle and bicycle industries.
Simplo already has technologies to make batteries for electric automobiles, and has been eyeing the car market in China. But China has not yet established regulations for electric cars.
Simplo has achieved strong results in the electric motorcycle and bicycle industries. Simplo is currently the third-largest electric bicycle battery supplier in the world and may enter the China market towards the end of 2013 or in early 2014.
China is the largest bicycle market in the world and Simplo chairman Raymond Sung expects this China market segment to strongly boost the company's profits, as related battery products have better gross margins than those for notebook batteries.
Simplo expects its revenues from the electric vehicle segment to reach NT$1 billion (US$33.74 million) in 2013 and grow significantly in 2014.
Since Taiwan has several first-tier bicycle brand vendors such as Giant and Merida, and there are many OEMs taking orders from international first-tier bicycle vendors, Taiwan-based battery makers, including Simplo, have been aggressively trying to form or strengthen partnerships with these makers and vendors, hoping to diversify their product lines, some market watcher noted.
Taiwan ships about 4-5 million bicycles each year.
