cens logo

Overview of Auto and PTW Segments in Taiwan and Abroad

Nov 18, 2013 | By Quincy Liang

New car sales in Taiwan increased 35.8% month-on-month (MoM) and 31.6% year-on-year (YoY) in September to 28,941 units, according to statistics compiled by the Ministry of Transportation and Communications (MOTC), with the rise having narrowed the first-three-quarter YoY sales-volume drop to less than 1%.

New-car sales in Taiwan soared about 32% YoY in September.New-car sales in Taiwan soared about 32% YoY in September.
In September, Hotai Motor Co. Ltd., distributor of Toyota and Lexus and the major dealer in Taiwan for more than 10 years, saw its market share fall to under-30%, the first time since the second quarter, due mainly to inventory clearance in the previous few months of its old-version Toyota Altis sedans. Another major carmaker China Motor Corp. (CMC), which locally assembles and sells Mitsubishi, yielded its No. 3 position to Yulon Nissan Motor Co., distributor of Nissan and Infiniti, in the month due to a lull before it announced the new Mitsubishi Colt Plus sub-compact sedan.

Thanks to smooth sales of its imported sport utility vehicle (SUV) Rogue and crossover Juke, Yulon Nissan jumped to the No. 2 by winning a 12% market share; while its sales are expected to rise after announcing the new Nissan Super Sentra medium sedan in October.

Sales of Honda Taiwan Motor Co. and Ford Lio Ho Motor Co. increased 98.3% and 106% YoY, respectively, giving the two automakers the highest YoY growth rates among all counterparts. Industry sources say that the high growth rates are attributable to lower comparison base last year and the new-car effect (Ford Lio Ho pushed the new Kuga SUV and Focus sedan).

In the first nine months, cumulative new-car sales dropped 0.7% YoY to about 273,000 units. In conjunction with most Japanese brands to push new models in October to attract delayed purchases, the industry is optimistic about an annual volume growth this year.

In response to the increased sales, reports the Automotive Research & Testing Center (ARTC), September this year was a transitional period between inventory clearance of old-version models and new-model announcements by most automakers. However, smooth sales of imported cars, which increased by more than 40% to over 9,600 units in September, greatly helped the overall market growth. During the period, Hotai sold 1,668 imported Toyotas, including 1,318 RAV4 SUVs; while German brands Mercedes-Benz (1,453) and BMW (1,312) also scored eye-catching sales.

The automotive center says that several heavyweight locally assembled models announced in the fourth quarter, including the Toyota All New Altis, Nissan Super Sentra, and Mitsubishi Colt Plus 3, will bring up new-car sales volume in the final quarter and even pull up the 2013 market to outstrip last year's.

New-PTW Sales Hit Year-high in Sept.

In September, sales of new PTWs increased 40% MoM and 6.3% YoY to 82,050 units, a record monthly high in 2013, ending the MoM drop in August and turning the overall PTW market back to a growing trend.

In the first nine months, some 525,709 new PTWs were licensed in Taiwan, up 8.25% YoY. Though new-PTW sales are expected to gradually decline in conjunction with cooling weather, industry sources said that the overall market has confirmed an annual growth this year.
Sales of new PTWs hit year-high record in September.Sales of new PTWs hit year-high record in September.
ARTC say that the clear PTW sales growth in September can be attributed to the strong sales of "yellow license plate" PTW models (between 251cc and 550cc) and the strong back-to-school purchases. The center explains that after the government lifted its ban on yellow-plate PTWs running on express ways, sales of 251cc-550cc scooters have been showing rapid growth. Several vendors have pushed models in this displacement range, including Kwang Yang Motor Co., Ltd. (KYMCO brand), Yamaha Motor Taiwan Co. (Yamaha), Aeon Motor Co., Ltd. (Aeon) and Sanyang Industry Co., Ltd. (SYM).

Statistics compiled by the MOTC showed that some 11, 200 PTWs bigger than 150cc were licensed in September, up more than 30% YoY and accounting for 13.7% of the overall new PTW sales. Increase in the segment was attributed to mainly yellow-plate scooters, and is expected to continue with the increasing number of yellow-plate PTWs sold.

Recovering New-car Sales in Europe
In September, demand for new cars in the EU (27) was up 5.4%, amounting to 1,159,066 units, from the record low volumes registered in September 2012 since ACEA (European Automobile Manufacturers' Association) recorded new registrations in the EU27 in 2003. The month counted on average one more working day across the EU this year, compared to the last, ARTC says. Except Austria (-6.6%), Germany (-1.2%), Italy (-2.9%) and Netherlands (-1.4%), the rest 13 nations in Western Europe saw YoY sales increase in the month.

Some 247,199 new cars were licensed in Germany in September (down 1.2% YoY), compared to 403,136 in the U.K. (up 12.1%) and 142,211 in France (up 3.4%).

From January to September, EU 27's new-car registrations declined by 3.9% YoY, with a total of 9,000,629 vehicles. The U.K. was the only significant market to record an increase (+10.8%). Downturn prevailed across other major markets, ranging from -1.6% in Spain to -6.0% in Germany, -8.3% in Italy and -8.5% in France, leading to an overall 3.9% contraction in the EU27, compared to the first nine months of 2012.

From January to August, new commercial vehicle registrations decreased by 5.5% YoY in the EU27. The UK was the only market to post growth (+6.7%), while Spain (-0.5%), France (-7.6%), Germany (-8.2%) and Italy (-18.5%) all saw their markets contract.

In the first nine months, EU27's new-car sales saw YoY increases only in April, July and September with growth rates of 1.9%, 4% and 5.3%. ARTC says that the high growth in EU27 is showing a recovering sign in the market, and a strong replacement demand is foreseeable if nations in the region overcome different negative economic factors.

EV Subsidies in China
Worsening air pollution in China has driven the Chinese central government to extend its subsidies to energy-efficient cars that expired on September 30. From October 1, each purchase of an energy-efficient car under 1,600cc is eligible for 3,000 renminbi (RMB, or Chinese yuan) in subsidies.

The Chinese central government promulgated a subsidizing program to energy-efficient cars in May 2012, budgeting 6 billion RMB to encourage purchases of under-1.6L energy-efficient cars, aiming to combat worsening air pollution in China, including dust storms that raise particulate matter up to 1,00, compared to the normal 2.5.

ARTC points out that the extended subsidizing program has driven sales of subsidy-qualified cars in China in September to push overall market growth. In the first nine months, new-car sales in China grew by 12.7% YoY to reach 15.88 million units.

Tesla Model S in Norway
Tesla Motor Inc., an American maker of premium electric cars, has drawn intense attention globally with the hot sales of its Model S, which in the U.S. sold even better than the German Mercedes-Benz, BMW, and Audi in the first half of 2013. In August Tesla announced plans to enter the Chinese market by setting up its first showroom in Beijing; while in September, the Model S has immediately become the best-selling EV in Norway.

A total of 616 units of Model S were sold in Norway in September, accounting for 5.1% of total new-car sales in the nation. Nissan leaf was the No. 5 best-selling cars in the nation in the first nine months, accounting for about 3% of the overall market. It's estimated that some 14,500 EVs are running in Norway now.

Industry sources say that the Norwegian government provides license fee exemption and the 25% value-added tax on EVs, equal to dozens of thousands U.S. dollars. In addition, EVs on the public-bus lanes evade traffic jams.

Norway's highest gasoline prices in Europe, about 15.26 Norwegian Krone (NOK) or US$2.6 each liter, also drives EV popularity.

ARTC says that currently EV sales rate in Norway is the highest globally. Until the end of September 2013, some 4,591 pure electric cars have been sold, accounting 3.4% of the overall new-car sales in the market, with the growth continuing. The nation's incentives to promote EV adoption, such as the tax exemption, special driving lanes etc., ARTC says, should be emulated by other nations.


Industry In-Focus

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


China's Strong Auto Market to Buoy Taiwan's Related Industries</h2>

China's Strong Auto Market to Buoy Taiwan's Related Industries

Oct 19, 2020

Taiwan's auto parts market has seen positive impacts as the Chinese automotive market continues to grow in its sixth consecutive month. Hotai Motors and Yulon Nissan Motor are the two significant firms enjoying the leverage. The island's related industries are benefiting from the strong performance of China's automotive market. Industry members say as long as competitive Taiwanese firms mainta...


Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions</h2>

Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions

Oct 19, 2020

Industry experts expect to see challenging times ahead for production in the foundry sector, forecasting that the current situation will not let up in the short-term and warns of unbalanced supply-demand next year. During the pre-pandemic era, IC design firms say clients usually made urgent orders to avoid having to manage inventory. Yet, considering limited foundry production volume, clients ...



Industry Reports

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


(File cabinets, photo courtesy of Chyn Fuh Enterprise Co., Ltd.)

Taiwan's Furniture Industry Amid the COVID-19 Pandemic

Oct 16, 2020

The COVID-19 pandemic has deeply affected global and Taiwan's political and economic landscapes. Unlike some industries, the furniture sector did not escape unscathed, facing a squeeze from management and costs. While Taiwan continues to implement a stable, successful outbreak response, the industry has also misjudged the economic downturn duration. The furniture industry has yet to fully recover...


2020 Energy Vision Summit for Green Energy to Kick off in Nov.</h2>

2020 Energy Vision Summit for Green Energy to Kick off in Nov.

Oct 14, 2020

The Taiwanese government has pledged to lead the effort in further developing the sustainable green economy, which is among the sectors highlighted in the Tsai administration's "5+2 Innovative Industries Initiative." Economic Daily News is hosting the "2020 Energy Vision Summit - Green Energy 2.0" on November 11. As one of the government's core policies, improving the island's energy self-suff...



Supplier News

(Electric Vehicle-Photo courtesy of CENS)

Microtest: Precise, Reliable, and Always Improving

Oct 16, 2020

Eyes Stake in 5G Industry with Impedance Analyzer 6632 With greater demand for electronics and manufacturers' need for more precise and diverse applications than before, testing equipment that ensures the reliability, safety, and quality of parts are in hot demand. Founded in 1993, Microtest Corp. is a professional maker and developer of high precision and automatic testing and measurement ins...


(Photo courtesy of Ho Shuan Enterprise Co., Ltd.)

Ho Shuan is Your Choice for Educational Furniture and More

Oct 16, 2020

Insisting that its customers are always a top priority, Ho Shuan Enterprise Co., Ltd.'s R&D team provides the best educational furniture and peripherals, computer tables, and desks to meet all customer requirements. Established in 1986, Ho Shuan has experienced recent sluggish local market performance, but eventually rebounded and came back better than ever. Despite difficulties, the firm neve...

HO SHUAN ENTERPRISE CO., LTD.


(S16-M01 Short Swivel-Handle Cabinet, photo courtesy of Chyn Fuh Enterprise)

Chyn Fuh: A Quality OA Metal Furniture Maker

Oct 16, 2020

Chyn Fuh Enterprise, founded in 1993, entered the market with the sole aim of offering other OA metal furniture options for customers. Since its inception, Chyn Fuh has focused on designing and producing OA metal furniture, providing various office use products, including file cabinets, storage cabinets, office desks, and different assistive metal products. Chyn Fuh partook in many government ...

CHYN FUH ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Gearing up for Post-COVID Recovery, THS Coming Soon in October</h2>

Gearing up for Post-COVID Recovery, THS Coming Soon in October

Oct 07, 2020

As the only hardware and hand tools trade show taking place this year globally, the three-day Taiwan Hardware Show (THS) will soon kick off on 13th October at the Taichung International Exhibition Center. Positive industry outlook for the post COVID-19 era has led to over 370 companies signing up as exhibitors, in a bid to gear up for a long-awaited economic recovery and plan the next strategic m...


Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...