Green Wind Blows Into Taipei AMPA 2010

Taiwan's auto parts and electronics suppliers rush to unveil

Global climate change related to greenhouse gases has heightened attention to carbon emission reduction and fuel efficiency among carmakers worldwide. The push for electric vehicles (EVs) and “new energy” vehicles is the clearest manifestation of this trend, and also a key theme at the Taipei International Auto Parts & Accessories Show 2010 (Taipei AMPA).

Over the years, the Taiwan External Trade Development Council (TAITRA) has grown Taipei AMPA into one of the gold-standard events for the global auto parts and accessories industry. It is widely considered the best portal for international buyers to access original equipment (OE) and aftermarket (AM) parts suppliers with reputations for quality and service.

Market Turns Around

According to the AMPA show organizer, global auto sales fell 3.7% in 2008 to 70.53 million cars and plunged again by 13.5% in 2009 to 60.99 million units. Toyota Motor, the world's largest carmaker since outpacing U.S.'s Ford in 2008, saw car sales drop to 7.81 million units in 2009 from 8.97 million units a year earlier.

After those dark years of 2008 and 2009, however, the global auto industry seems to have regained its footing in 2010. An estimated 980,000 cars were sold in the U.S. in April, up 20% from the corresponding figure posted a year earlier. The full year figure is anticipated to reach around 11 million units, 1 million units more than in 2009, and consolidating the country's second-place position in the global car market, after China.

The fastest growing markets have been in emerging countries, like China and India, and big-name global carmakers are smartly focusing their guns on these areas to drive sales this year. In April, automotive sales in China and India rose 33.2% and 39.5% year-on-year, respectively, according to the China Association of Automobile Manufacturers (CAMM) and Society of Indian Automobile Manufacturers (SIAM). This has boosted insider confidence that the industry is on the mend, as well as alleviated worries that the euro crisis would stifle recovery of the European car market. CAMM projects annual sales in China's car market will surpass 15 million units this year helped by steady economic growth.

The downturn in auto market also affected upstream parts and accessories suppliers in Taiwan in 2009. Statistics compiled by the Taiwan Transportation Vehicle Manufacturers Association (TTVMA) show that Taiwanese auto part and accessory exports fell 8.4% to US$4.36 billion last year.

The picture this year has been brighter as stronger auto sales add momentum to revenue growth in the local parts industry. According to TTVMA, Taiwan auto parts exports recovered to US$1.22 billion at the end of this March (less than two weeks before the opening of Taipei AMPA 2010, running from April 12 to 15), 26% more than US$967.56 million posted a year earlier. The increasingly favorable market climate also contributed to success of this year's Taipei AMPA.

Full Exhibition Floors

Taipei AMPA was held at the Taipei World Trade Center's Nangang Exhibition Hall in association with the Taipei International Automotive Electronics Show (AutoTronics Taipei). The two shows attracted 1,050 exhibitors, up 5.73% from the 993 exhibitors last year, and occupied an exhibition area of over 46,000 square meters. A total of 2,711 booths were rented.

As leading venues for sourcing auto parts in greater China, the two shows attracted exhibitors from 13 foreign countries, including the U.S., the U.K., the Netherlands, Indonesia, South Korea, the Philippines, Thailand and India.

The four-day-long double show also attracted over 51,000 visitors, representing a 3% increase in the corresponding figure posted last year. About 5,400 visitors were foreign buyers or corporate decision-makers, with over 60% from Asia and 10% from Europe and the U.S. each. Also, the number of foreign visitors from emerging countries, like Russia, the Middle East, and Egypt, grew significantly this year, adding to the positive buying atmosphere at the shows. Onsite surveys indicated that about 80% of the polled buyers at the exhibition appreciated the diversity of the shows and found suitable suppliers for further development of business cooperation.

The show organizer also noted that a large number of exhibitors expressed optimism about the business outlook this year. Many said that the show helped them to renew links with customers and secure new orders.

Opening Remarks

AMPA 2010 opened on April 12 with a number of celebrities and government officials in attendance.

At the opening ceremony, TAITRA President Chao Yuen-chuan said that this year's show is noteworthy for its positive response to the growing trend of electric cars in the global automotive industry. The show featured a green-themed exhibition area, named "HEV/EV (hybrid vehicle/electric vehicle) Components and Parts Exhibition Zone," for the first time, in which 24 green exhibitors with a total of 47 booths debuted their respective achievements in high fuel efficiency and customized parts for electric and hybrid cars. The show, he said, "Showcases the technical strengths of Taiwan's R&D and manufacturing capability in lithium-iron batteries, motor modules and other key components for electric vehicles."

Chao also pointed out that TAITRA's effort to boost Taipei AMPA's profile as a world-caliber business platform with quality suppliers and buyers has worked. "Our buyer invitation program in coordination with our oversea representative offices has successfully encouraged senior executives from several major corporations to attend the show. As a result, executives are here from such firms as Peugeot Citroen Automobiles and Faurecia of France, Mitsubishi Auto Accessories & Products of Japan, Chrysler Asia Pacific Investment Co., Magna Automotive Technology & Service Co., General Motors of China, and many others."

Confirming the importance of growing concerns about carbon reduction, Arthur Chiao, chairman of Taiwan Electrical and Electronic Manufacturers' Association (TEEMA), said that carbon oxide emission generated from transportation has increased to account for about 15% of the world total. This trend underscores that Taiwan's auto parts and electronics suppliers are right to focus on the development of green products with high fuel efficiency and low emissions.

Commending Taiwanese auto parts suppliers' contribution to the island's export-dependent economy, Bureau of Foreign Trade's Director General Huang Chih-peng noted the auto parts and accessories sector accounted for a 4.17% share of Taiwan's total manufacturing output in 2009. He attributed this accomplishment to industry efforts in supply chain integration and value adding.

As to EVs and parts, Huang stated that the government will stimulate development and use of EVs in Taiwan by providing tax reductions and subsidies. These policies aim to push domestic EV sales past 60,000 units in 2015. "Taiwan has an edge in developing lithium batteries, motors, ICs and system integration technologies, putting the island in a strong position in the global supply chain for electric cars."

Complete Product Range

Visitors had plenty to see at AMPA 2010 and AutoTronics Taipei, which jointly presented a full range of auto parts and electronics, including auto lamps, car body and frame parts, engine parts, fine-tuning parts, transmission parts, chassis parts, brake parts, tires and wheels, auto seats and interior accessories, forgings and die casts, mirrors, GPS devices, audio and video entertainment devices, and auto sensors. Auto repair tools, maintenance equipment and IT (information technology)-based products and systems, Taiwan's forte, for auto parts suppliers were also available at the 2-in-1 show.

Over 20 companies introduced new products at five presentation events during the event period. The new products included Big Time Auto Parts' BT420 DRL & Positioning Light, Chu Hung's e-Barrier, ABEO Technology's Auto Dimming Rear View Mirror, Chung Jiing Enterprise's HD-818 Manual Extract & Discharge Pump/18L, Defend Group's DEFEND MATIC Electromechanical Anti-thief System, Giantlight Traffic's High Power LED 90mm Fog Lamp, and Giantec Technologies' High-strength, Light-weight Thermoset Carbon Fiber CMC.

As usual, auto lamps were the biggest hit with visitors at the show. There are several bellwether companies in the local sector, such as TYC Brother Industrial Co., Ltd., Depo Auto Parts Ind. Co., Ltd., Eagle Eyes Traffic Ind. Co., Ltd., Sonar Auto Parts Co., Ltd., Just Auto Accessories Co., Ltd., and Giantlight Traffic Supplies Instrument Co., Ltd. All attracted strong turnouts to their exhibits at the shows.

LED Auto Lamps Remain Hot

LED auto lamps have been a particular stand out success of Taiwan in the green auto parts industry. These energy-saving lamps are well suited for use in electric cars, which need to conserve every volt possible. Depo, a local producer of LED lamps, unveiled its newest LED auto head lamps at the show.

Depo sales manager Michael Hu noted that the newest LED auto head lamp represents a milestone in the EV lamp segment. It was used on Taiwan's first plug-in electric car made by Yulon Group, and it also is suitable for use on the Lancer and Toyota and Honda EVs. "The LED auto head lamp underlines Depo's technical breakthroughs in thermal dissipation and luminosity," Hu mentioned. "The lamp also consumes less power than competing models, which we believe will bring about positive growth momentum in our business in the coming five years."

Depo is one of Taiwan's top-20 auto parts exporters and the largest auto lamp maker on the island, Hu said. Despite a weak global auto market, the company reported a 2.5% sales growth in 2009. "We have noticed a strong turnaround in sales since the third quarter of last year," he indicated. "This could be attributed partly to our solid brand recognition in the world, and partly to the decision to invest US$100 million in output expansion last year."

Different Customer Behavior

Asked what major changes he has seen in buyers' activities and preferences at this AMPA after the global downturn, Hu answered that buyers from emerging countries, like Kenya and Syria, are coming back to build links with Taiwanese suppliers rather than with Chinese ones. "In pursuit of the optimal balance between quality and costs, they prefer to buy Taiwan-made auto lamps for reliable quality," he said.

Hu added that buyers also have become more careful in their purchasing and also more willing to team up with Depo to learn from it. "It is just like a business tie forming between Depo and our clients," Hu said. "Both sides will have unique objectives to achieve. It means we are not only in a customer-supplier relationship, but also in a partnership. I think this phenomenon will become an industry trend in the coming few years, especially in view of the increasingly high market concentration."

More Advocates of LED Lamps

One of Taiwan's top three auto lamp suppliers, TYC Brothers also highlighted LED headlamps at the show, according to Dannis Tsai, the firm's general manager of Europe & East Asia Regions.

After years of developing LED auto lamps, TYC Brothers sees a bright outlook for this segment, according to Tsai. It is working on a series of LED headlamps with low and high beams and which are compliant with E-Mark standards for light patterns. Known as a top-caliber original design manufacturer (ODM) in the line, the firm said it can provide such products with customized designs. "LED applications in auto lamps will become the mainstream in the line in the next decade, as concerns about environmental protection have accelerated demand for electric cars," Tsai said. "The requirement of daytime running lamps in Europe is another motivating factor."

TYC Brothers exports its products to over 100 different countries, Tsai said, adding that the company saw sales drop less than 3% last year. "We have focused more on developing LED auto lamps from this year to be technologically competitive with our rivals," she said. "We also are optimistic about huge business potential of the Chinese market, especially since the signing of the Economic Cooperation Framework Agreement between Taiwan and China will open the door wider for Taiwanese auto lamp makers."

Winner of the 2010 AMPA Innovation Award, Just Auto's LED Daytime Running Lamp for Toyota Yaris cars was also one of the biggest eye-catchers at the show. The lamp uses 0.07W LED bulbs as the light source and consumes just 6W per hour, 90% less than the 55W models widely used. All of the components used by the DRL fully conform to the EU's RoHS and REACH regulations.

Just Auto's award-winning product was joined by a dozen LED lamp types, including LED bus door lamps, LED brake lamps, and LED interior lamps, at the company's exhibits this year. Marco Lin, founder of the company, which is a TS16949-certificated auto lamp supplier, noted that development of LED lamps is key to the company's sustainable development. "We are progressing significantly in LED optoelectronic technologies to give us an edge in exploring new markets, such as China, this year."

Green Power

A number of other exhibitors also unveiled green solutions consistent with Taipei AMPA's theme of "Moving Green, Driving Eco."

One of the must-see exhibitors was Lifetech Energy Inc., which displayed a couple of lithium batteries and packs with high stability and power performance. The 330V/15Ah 4.59KWh Mega Pack lured visitors with its built-in battery management system (BMS) that automatically detects the condition of each battery cell and provides users with precise information about the total system voltage and temperature. Adopting iron phosphate as the cathode material, the battery pack is suitable for power various types of electric vehicles and vessels.

The company also launched its Solar & Wind Energy Bank, which features monthly electricity storage capability of up to 30KWH generated from solar panels or wind turbines. The energy bank is fully computerized and has a user-friendly operating system that continuously shows voltages, carbon emission and related data for system stability. A built-in UPS system further protects the device from AC power failure.

Won Ten Technology Co., Ltd. unveiled its "efuel" family of green solutions. The product line includes Oxy-hydrogen stoves and power generators, carbon cleaning systems for motorcycles and automobiles and dual-fuel systems. One of the biggest eye-catchers demonstrated at the company's booth was the EP130B Carbon Cleaning System for Motorcycles, which was one of winners of the Taiwan Excellence Award. The system uses the company's innovative processing technology for hydrogen and oxide molecules, allowing the device to accelerate combustion of carbon accumulated in cylinders, enhance engine efficiency and cut carbon emissions. The processing technology, protected by international patents, is 100% friendly to the environment and generates no pollution.

As Taiwan's leading R&D institution of automobile technologies, the Taiwan Automotive Research Consortium (TARC) unveiled its newest research results at AMPA's Taiwan Automotive Research Consortium Pavilion this year. The consortium's Pancake Motor, developed for use in electric bicycles, is just one inch thick, or just 30% of the thickness of traditional hub motors. The motor has an axial flux permanent magnet motors and can be mounted on the side of the tire without spoke disassembly. The cost-efficient motor is expected to enhance Taiwan's presence in the global supply chain for electric bicycles.

TARC also demonstrated an ACC Anti-Collision Radar for Road Vehicles, Night Vision System, Driver Surveillance System, Electric Power Steering, Automatic Parking Guidance System, etc., and improvements in traditional auto parts, like development of lightweight structure for LEV frames.

Supporting Events

The Taipei International Automotive Electronics Forum, held annually by TAITRA during the show, focused this year on two major issues, key parts and components and marketing strategies for exploring markets for new-energy and electric vehicles. Senior executives from Mitsubishi Motors, General Motors, Shanghai Automotives and BMW, as well as Sam Natapoff, senior advisor to the Governor of New York State for International Commerce, were invited to give lectures related to the aforementioned issues.

The Move Forward Electric Vehicles Technology Forum and the 6th Asian Electronic Forum were also held during the show. The two events discussed business opportunities and technical development in the global supply chain of electric vehicles, with talks by industry professionals and insiders, giving attendees new perspectives on the future of the booming EV market.

Taiwan's newest achievements in the auto parts sector were highlighted at the show's "Online Green Power Products Showcases." There also were thematic areas for exhibiting fuel efficient, low carbon emission, lightweight and high performance products.

One-on-one procurement meetings were also arranged for the 60-plus professional and big-name buyers from 25 countries. These events helped local suppliers tap new business with foreign buyers.

CENS also had its bigger ever booth at the show this year. The go-to source for information on Taiwan's auto industry, CENS has been working hard to raise the profile of Taiwan's high quality auto parts suppliers among international buyers. CENS handed out its Taiwan Transportation Equipment Guide, the best-known publication of this kind in Taiwan, at the show, further demonstrating its leading position as a business matchmaker.

The next Taipei AMPA is slated to be held at the same venue on April 12 to 15, 2011. The show organizers promise to build on the show's success this year with even more emphasis on green products.