Merida Industry Co., Ltd. said at a recent online investor conference that the bicycle market is showing signs of recovery.

In the first half of the year, sales in Europe increased 14% year on year, with channel inventories gradually returning to normal. Mainland China also performed better than expected, with sales volume up 12.5% and revenue increasing 6%. Growth was particularly evident in entry- to mid-level models, while entry-level bikes and mountain bikes also recorded growth.

Europe accounted for 54% of Merida Group’s total sales, followed by Mainland China at 21%, the Americas at 18%, and other markets at 7%.

At Merida’s Taiwan plant, road bikes and eMTBs accounted for a combined 58% of shipments. E-City bikes also recovered, with their share rising from 11% last year to 17%.

The group’s consolidated gross margin recovered to 18% in Q2, supported by a higher proportion of new-model sales, reduced discounting of older inventory, and more stable foreign exchange movements.

European subsidiaries reported a 14% increase in H1 sales, while profit reached NT$167 million, up 49% year on year.

Merida has also implemented a zero-fee recruitment policy for migrant workers. PwC completed a human rights due diligence report for its Taiwan plant in January, while the plant obtained WRAP certification in July.

In July, Merida held its global new model launch in Germany, with nearly 500 display and test-ride bikes prepared for dealers. The company has also expanded customization from framesets to complete bikes in Taiwan and plans to gradually introduce the service in European markets.

Regarding the revised U.S. Section 301 tariffs, effective July 24, 2026, Merida said Taiwan benefits from a 10% MFN rate without stacking. Compared with major competing manufacturing countries such as Vietnam, Taiwan-made bicycles have a tariff advantage of 2.5 to 12.5 percentage points, depending on the model.

Photo: Merida