Bicycle Industry Crisis: Astro's Transformation Amid Inventory and Competitive Pressures

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The bicycle industry is facing significant challenges, with high inventory levels emerging as a core issue. Prior to 2022, rising demand and the pandemic prompted brands and suppliers to increase procurement, leading to supply chain backlogs. Although discount promotions have accelerated inventory clearance, brand profitability has suffered, increasing financial pressure. Some startups have been eliminated due to insufficient funding, while traditional brands are struggling to stay afloat. Certain brands have passed losses onto suppliers or defaulted on payments due to bankruptcy, further straining the supply chain, which may reach its breaking point by 2025.

Consumer preference for discounted prices has made it difficult for new products to maintain their pricing, and price wars have further eroded profit margins. Additionally, unstable trade policies and environmental demands are intensifying business pressures. While major brands are actively advancing ESG initiatives, smaller brands face difficulties in keeping up due to limited resources. Vietnam has become a key supply hub, but its production capacity is not yet fully realized. Meanwhile, the European supply chain faces challenges from costs and geopolitical issues, making short-term adjustments difficult. The industry stands at a critical juncture of challenge and transformation, requiring a balance between market demands and environmental goals to ensure long-term growth.

Despite these difficulties, Astro responded swiftly to shifting demand in the third quarter of 2022, actively assisting customers in adjusting finished goods and material management. This proactive approach enabled Astro to navigate an extremely challenging environment successfully. As a result, Astro has developed clear and concrete strategic directions for its future growth plans.

Rooted in Taiwan, Expanding in Vietnam,

and Establishing a Global Presence

1. Vietnam New Plant Expansion and Automation Upgrades

Despite the multiple challenges facing the bicycle industry, Astro remains optimistic about the future of the electric vehicle market. To prepare for market recovery, Astro is actively advancing the construction of its new Vietnam facility, spanning a total area of 42,000 square meters. The facility will feature state-of-the-art automated equipment integrated with MES/ERP/QCS systems, with mass production slated to begin in the second half of 2026. The production capacity for aluminum frames, carbon fiber frames, and painting will be expanded to meet anticipated market demands during a recovery.

2. Strengthening Supply Chain Management and Localization

As the first frame manufacturer to establish operations in Vietnam, Astro has been deeply rooted in the region for 24 years, continuously enhancing collaboration with local suppliers. In response to the growing demand for EUR1 trade agreements from European clients, Astro is actively cultivating a robust network of reliable local suppliers to strengthen supply chain resilience and boost localized production capabilities.

3. Commitment to Sustainable Development (345*220)

Sustainability has been a core focus for Astro since the planning of its Vietnam Kim Huy facility in 2016, where energy conservation and carbon reduction were prioritized in the design. Astro achieved ISO14064-1 certification in 2023 and adopted green aluminum across its operations in 2024. It also plans to obtain ISO14067 certification by 2025 and complete the installation of solar panels at its Taiwan facility. The Vietnam new plant, set to commence operations in 2026, will also be built with ESG principles at its foundation, incorporating energy-efficient equipment throughout. Beyond these milestones, Astro has outlined a series of future goals and actionable plans to ensure the effective implementation of its ESG initiatives. These efforts not only underscore Astro’s commitment to environmental sustainability but also highlight its leadership in corporate responsibility and alignment with global trends.

4. Enhancing Innovation and Design Capabilities at Taiwan Headquarters

Astro’s headquarters is dedicated to the research and development of new materials and technologies. With a team of over 80 professionals, it provides high-quality design and technical support for brand clients, continuously driving market innovation and setting industry trends.

5. Leveraging Group Resources to Strengthen Competitiveness

Since joining the Darfon Group in 2021, Astro has gained solid financial support and advanced management systems, enabling significant enhancements in technology and equipment investments. Additionally, the group’s global resources have provided Astro with a robust foundation, allowing it to excel in a competitive market.

Astro has established a clear blueprint for its production bases and talent resource planning in Taiwan and Vietnam, while actively evaluating the potential for establishing a production base in Europe.This move aims to shorten the supply chain and better meet customer needs.

Over the next three years, Astro will build on its robust automated production systems, stable supply chain management, and group resources to unveil a fresh and competitive presence in the market, delivering superior products and services.