Hota Announces Targets for 2014
2014/01/15 | By Quincy Liang
David Shen, chairman of Hota Industrial Manufacturing Co., Ltd. recently told the Economic Daily News (EDN), the largest Chinese-language economic daily newspaper in Taiwan, that his company is the sole supplier of reduction (speed reducer) gearboxes to American premium electric-car maker Tesla. The two companies plan to expand their partnership in 2014.
Thanks to stable orders from established customers and increasing sales to new clients, Hota's auto-parts shipments are expected to increase by 20% in 2014. The strong demand is expected to continue for at least several years, Shen added.
Hota is the leading maker of automotive gears with major product categories covering transmission gearboxes, oil-pump gear sets, differentials, and torque converters. It is also the only local maker of auto transmission gearbox assemblies. The firm's major clients include all the top-three American auto brands GM, Ford and Chrysler, as well as German carmakers Volkswagen, BMW and Mercedes-Benz.
Hota also supplies speed-reduction gearboxes to Toyota, the world's biggest automaker.
During the recent interview by EDN, Shen claimed that his company's business focus in 2014 would be on improving its automotive transmission techniques and developing medical and equipment applications.
After years of efforts, Shen said, Hota and four other Taiwanese companies have jointly tapped into Tesla's supply chain. Another candidate is Changs Ascending Enterprise Co., Ltd. (CAEC), a maker of cathode materials for lithium-ion batteries, having sent product examples to Tesla for certification.
TeslaTesla is a fast-growing electric-car developer and maker that is aggressively trying to improve charging infrastructure and continuously pushing new models with longer range and more affordable prices. Shen believes that electric vehicles (EVs) have unlimited development potential thanks to their zero emission advantage.
According to Shen, Tesla followed Apple's lead in finding partners in Taiwan several years ago. The American EV maker has now established close cooperation ties with suppliers on the island. Shen said that he looks forward to seeing more qualified local companies connect with the supply chains of Tesla and other EV players.
| Taiwanese Suppliers to Tesla | |
| Company | Products |
| Hota
| Reduction gearboxes
|
| BizLink Technology, Inc.
| Electronic connectors
|
| TPK Holding Co., Ltd.
| Touch panels
|
| Chroma ATE Inc.
| Electrical machinery modules, EV-related testing equipment
|
| Fukuta Elec. & Mach. Co., Ltd.
| EV drive motors
|
| Sumeeko Industries Co., Ltd.
| Automotive fasteners, auto parts
|
Shen says that Hota supplies transmission systems to a range of automakers and tier-1 parts suppliers, including BorgWarner and Puntch. The company is committed to meeting clients' product development plans and supplying needed materials and parts with on-time delivery. Shen estimates that Hota will increase shipments by about 20% in 2014, higher than the 2013 rate, thanks to the debut of many new vehicle models by international brands in 2014.
New MarketsShen says that medical equipment is expected to be a major revenue-growth engine for Hota over the next few years.
"Hota has been intensively working with vehicular transmission systems for dozens of years, winning strong confirmation from international makers," Shen says. "As part of our transformation and diversification plan, Hota plans to utilize its existing technical capability and manufacturing equipment for the production of all terrain vehicles (ATVs) to venture into the medical equipment business. Some targeted product categories include medical beds, wheelchairs and electric scooters."
According to Shen, some of Hota's medical-equipment products are in the GMP certification processes. The firm expects to begin shipping medical equipment in the second half of 2014. Hota is also in talks on a contract-supply order for dual-functional (manual and electric powered) wheelchairs to a U.K. customer. Shen says that about 60% to 70% of the ATV-production equipment can be utilized to produce medical equipment items, putting Hota in an advantageous position in the new business segment.
Hota also aims to tap the machinery equipment market in 2014
Shen notes that his company is required by international automakers and tier-1s to adopt the highest precision, high-end equipment to assure the best product quality, stability and precision. Hota has therefore been purchasing top-end machinery equipment from big vendors in industrially advanced nations such as Germany and Japan, as well as building experience and know-how in related fields.
About six years ago, Shen says, Hota began adopting self-developed and -made equipment such as gear-shaving and gear-chamfering machines for special-purpose applications. The company began selling such equipment about four years ago. In the past few years, Hota has sold more than 300 machine sets. The new business has not only lowered the company's operation costs, but also boosted revenue and profitability. Shen says that his company's gear-related processing machines are only half the price of imported counterparts.
In early 2013, Hota began self-developing gear-hobbing machines. The company is now using the new models in trial production. The firm is scheduled to begin mass production of the new machines in mid-2014.