[Industry News]-Taiwan’s Auto Repair Tool Makers to Prove Themselves at 2013 TAIPEI AMPA

Taipei AMPA 2013

Suppliers can match Japanese quality but with more cost efficiency

Living up to Taiwan’s reputation of “Kingdom of Hand Tools,” local suppliers of auto repair tools and equipment are increasingly known for long-term dedication to R&D and branding. Such strategies, coupled with unwillingness to compromise competing against emerging rivals and realizing the danger of market erosion due to underselling, most Taiwanese suppliers are trying to move upmarket to take on and replace once-stronger counterparts especially from Japan and Europe.

Evidence of this trend has been easy to find at major international auto-parts shows, where Taiwanese repair-tool makers have been showing up in higher numbers than Japanese and European players, especially in the past few years.

Among Taiwanese companies big and small, the verdict is the same: Japanese counterparts are losing shares in the higher-level professional repair-tool market. Made-in-Japan auto tools are well-known for quality, durability, precision, and functionality, which Taiwanese players are matching but backed with more competitive prices.

The majority of Taiwanese auto repair tool and equipment companies will showcase innovative, functional products for professional markets and even-higher industrial applications at the upcoming 2013 Taipei AMPA. This steady rise in the industry value chain is the result of long-term investment in upgrading product quality and functionality to meet the most stringent requirements of production lines in various industries.

Core Advantages

Since the global meltdown in 2008 and resulting weaker consumer confidence, the global performance-tuning auto-parts market has sagged, which is exasperated by automakers trying to spice up product competitiveness with enhanced engine output and exterior styling. High fuel prices, unemployment in the USA and EU and uncertain prospects have all impacted yearning to spend on faster, fancier cars.

However, many Taiwanese tuning-parts suppliers have done well due to several reasons. A local supplier points out: “American, European, and Japanese customers have increasingly returned to us after experiencing unpleasantness and frustrations in doing business with Chinese companies. Taiwanese tuning-parts suppliers’ core advantages include being accountable for product quality and creditworthiness. With high product reliability, tactile sense, satisfactory service, and on-time delivery, we can retain competitiveness in the global high-end market despite the lull in the global market.”

In many cases, shipments of high-end Taiwan-made performance parts have grown rapidly over the past few years, implying that quality and functionality, not low prices, are top priorities in the performance-parts market. Such experience tells global buyers that the quality of Taiwan-made performance parts is unmatched by Chinese counterparts; in addition, local manufacturers constantly upgrade innovation capabilities and production techniques to maintain their lead.

EV Taiwan 2013

(Source:www.taipeiampa.com.tw)

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[Industry News]-Taiwan’s auto industry output forecast to grow 6.3% in Q2

Taipei AMPA 2013

The production value of Taiwan’s auto industry is expected to rebound in the second quarter, driven by the launch of new models and more promotional campaigns, according to a local research center.

The output of the local auto sector is likely to total NT$47.09 billion (US$1.57 billion) in the second quarter, up 6.3 percent from the previous three months, the Industrial Economics and Knowledge Research Center (IEK) forecast in a May 17 report.

The sector is expected to benefit from the launch of new vehicle models and extended promotions announced by automakers in the first quarter, which will boost consumer buying, the government-funded institute said.

In the January-March period of this year, the output of Taiwan’s auto industry declined 8.7 percent from a quarter earlier to NT$44.3 billion because of a reduced number of working days and delayed buying due to concerns over a falling yen, the research center said.

In fact, some local sales agents for Japanese automakers have canceled their plans to raise prices in reflection of the yen’s decline, while some auto vendors have cut prices in the local market by 3-6 percent since the beginning of March, according to the institute.

Taiwan Auto Industry

For the whole of 2013, the production value of the local auto industry is expected to total NT$189.27 billion, up 1.6 percent from 2012, the IEK said, lowering its forecast from 1.7 percent growth estimated in February.

In the auto parts segment, output for 2013 is likely to grow by an annual 6.5 percent to NT$209.29 billion, in reflection of recovering demand in the United States, Japan and Europe, the research center said.

Taiwan’s auto sales in April totaled 28,844 units, up 5 percent from March and 0.8 percent from a year earlier, according to government statistics.

In the first four months of this year, however, local auto sales declined 4.2 percent year-on-year to 119,131 units due to weak buying, the data showed.

(By Jeffrey Wu)
ENDITEM /pc

(Source:focustaiwan.tw)

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[Industry News]-Growth trends in import automobile and auto part markets in China in 2012

Poor conditions in the Chinese automobile market last year have gone as far as affecting imported automobiles and auto part sales in the country. Gasgoo.com (Chinese)-compiled statistics from the General Administration of Customs reveal that a total of 1.13 million automobiles and uncompleted knockdown kits were imported in 2012. The figure represents year-on-year growth of 9.1 percent, compared to 27.8 percent growth reported in 2011. Decreasing consumer demand and poor overall macroeconomic conditions have been attributed for the decline in growth.

 

 

Following an initial jump in sales, the Chinese import automobile market‘s performance declined in the final quarter of the year. Due to high consumer demand for imports in 2011, most manufacturers expected sales to grow even further the following year. They greatly increased the supply of imports, leading to sharp sales growth in the first two quarters of the year. Sales growth topped 35 percent in the second quarter. However, that margin contracted to just over 12 percent in the third quarter. Due to the increasingly poor state of the economy and shrinking demand, sales growth fell into the red in the fourth quarter.

Despite slower growth than in previous years, automobile import trade in 2012 was still valued at $47.49 billion. Automobiles were ranked by the State Administration of Customs as China’s eighth most valuable import commodity, up one place from 2011 and two from 2010.

Looking at 2012’s auto part market specifically, the 3.9 percent year-on-year growth rate for the value of auto part imports was noticeably less than the 11.7 percent rate for that of auto part exports. The difference between the two has grown from 4.7 percent in 2011 to 7.8 percent this year. Worth pointing out is that two years ago, the growth rate for imported auto parts was actually slightly higher than the one for auto part exports.

(Source:Gasgoo.com)

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[Industry News]-Taiwan’s auto manufacturing industry drives ahead

Taiwan Trade Shows

Taiwan may be experiencing sluggish new automobile sales—like much of the world—but that does not mean its vehicle manufacturing industry is suffering a similar slowdown. In fact, local automakers are chalking up solid export numbers amid testing economic conditions at home and abroad as ROC government policymaking efforts aimed at stimulating the sector pay dividends.

One overseas firm interested in capitalizing on this healthy state of affairs is Wolfsburg-headquartered Volkswagen AG. According to the company’s local agent Taikoo Motors Ltd., the giant German outfit is considering setting up an assembly plant in Taiwan. And if the government greenlights the investment proposal and provides requested resources, the first Taiwan-made Passats and Sharans will begin driving off the line by 2015.

During a visit to Taiwan last month, Su Weiming, president of Volkswagen’s Greater China and Southeast Asian operations, met with Vice President Wu Den-yih, Minister without Portfolio Yang Chiu-hsing, Deputy Economics Minister Duh Tyzz-jiun and Industrial Development Bureau Director-General Shen Jong-chin.

Su pitched Volkswagen’s investment proposal and said the company would need preferential tariff treatment and assistance to acquire land. The first stage of the proposed investment, which would be in southern Taiwan, involves setting up a 165,000-square-meter facility for the assembly of 50,000 cars per year. A further 330,000 square meters is required to implement a three-year expansion plan.

Taiwan Volkswagen sales for 2011 saw the company finish seventh with 3.7 percent of the market. While the assembly plant proposal is expected to lift this number to 15 percent, trailing only Japan’s Toyota Motor Corp., the bulk of new vehicles will be earmarked for markets throughout Asia.

Volkswagen’s interest in Taiwan reflects rosy data released by government-backed think tank Industrial Economics and Knowledge Center. In the second quarter of 2012, Taiwan’s auto or transportation vehicle industry production value, including assembled vehicles, autoparts, powered two-wheelers and electric vehicles, grew 3.2 percent quarter on quarter and 11.7 percent year on year to NT$107.63 billion (US$3.62 billion).

The value of vehicles produced in Taiwan during this period, comprising mid-sized and compact passenger cars, large passenger cars, light trucks and heavy-duty trucks and buses, increased 10 percent quarter on quarter and 24 percent year on year to NT$49.3 billion. In addition, 18,000 locally assembled cars were exported, mainly through local automakers’ foreign technical partners in Japan, up 13 percent quarter on quarter.

But Volkswagen is not the only foreign firm to recognize the value of making vehicles in Taiwan. U.S.-based PACCAR Inc., which designs and manufactures light-, medium- and heavy-duty trucks under the DAF, Kenworth, Leyland and Peterbilt brands, signed an assembly agreement with Taipei City-headquartered Formosa Automobile Sales Corp. in 2005 to turn out DAF CF85 trucks at the latter’s facility in Dadu, Taichung.

FASC has produced, marketed and sold DAF trucks in Taiwan since 2006. On average, the company puts together 10 CF units per week using completely knocked down, or CKD, packages shipped from the Netherlands. Since purchasing the plant in 1999, FASC has upgraded the facility several times and installed an NT$50 million assembly line in late 2005, enabling it to turn out more than 50 trucks and cabins per month.

In December 2011, FASC produced its 1,000th Taiwan-made CF truck. Reaching this milestone augured well for the commencement of work in November last year on assembling two versions of the popular DAF LF series distribution truck. The 12-ton LF45 and 17-ton LF55—built using semi knocked down, or SKD, packages shipped from Leyland in the U.K.—are expected to be top sellers and should see the company roll out 200 units in 2013.

Although the PACCAR-FASC deal has worked out well for both parties, the long-term viability of the partnership has been bolstered by government policies aimed at improving Taipei-Beijing relations. The Cross-Straits Economic Cooperation Framework Agreement (ECFA), concluded in June 2010, helped put FASC in the driver’s seat by opening up the burgeoning mainland Chinese heavy transport market for Taiwan-made trucks.

The landmark pact, which enabled both sides to turn a new page in bilateral ties, is an essential step forward in Taiwan’s economic development. To date, the ECFA has paid handsome dividends in terms of inbound investment and employment opportunities, while further integrating the country into regional and global economies.

According to the latest government statistics, Taiwan attracted US$5.56 billion in foreign investment for 2012, up 12.18 percent year on year. And the manufacturing industry employed 2.66 million workers in December 2012, up 0.72 percent year on year.

Auto Parts

Taiwan’s business climate is increasingly attractive because the pact has eliminated tariffs on more than 500 kinds of exports from Taiwan to mainland China. The ECFA lowered customs duties on 72 types of Taiwan-made goods to zero at the beginning of 2011, with tariffs on an additional 437 commodities reduced at the start of last year. Tariff savings on exports across the strait total US$551 million to October 2012, ensuring Taiwan-based firms enjoy a competitive edge in that market.

This bevy of ECFA-generated benefits is attracting more overseas firms such as Volkswagen and PACCAR to Taiwan’s auto manufacturing industry. The country’s can-do approach to international business ventures, cross-strait transportation links, formidable manufacturing clout, leading-edge R&D capabilities, progressive intellectual property rights protection and strong rule of law are also playing their part, ensuring Taiwan’s transformation into a world-class manufacturing hub.

(Source:www.taiwantoday.tw)

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