Taiwan's Dinli Metal Industrial Co. recently announced that it has phased out production of sub-250cc ATV models to focus on manufacturing models with powerplants larger than 300cc.
According to the China Economic News Service, Dinli chairman Lu Tai-yang said his company decided to withdraw from the under-250cc ATV business to escape price-cutting competition with local and Chinese rivals. The technical threshold of under-250cc ATV products is relatively low, Lu said, as are the profit margins.
Dinli started producing 250cc ATVs more than two years ago. Up to now, the company has shipped more than 21,000 250cc units.
Dinli was established in 1988 as an engine supplier for powered two-wheelers. The company began ATV manufacturing in 1996, and acquired the Cannondale brand two years ago for $20 million. The company recently developed a 300cc ATV model and plans to offer a 750cc unit next year.
Dinli recently inaugurated its second ATV plant in Taichung, central Taiwan. The new facility's monthly capacity is about 2,500 units, all of which will be exported to Dinli's markets in the U.S. and Europe.
Copyright 2006 Powersports Business