All Taiwan-listed Auto Makers and Vendors Post Revenue Growths in H1, 2014

Several factors have been fueling new car sales in Taiwan in the past few months, resulting in  promising operational results for the Taiwan-listed auto vendors on the island in June and the first half (H1) of the year.

Such factors, say industry sources, include launchings of new models by local automakers and importers since late 2013;  stronger-than-expected 10-year replacement demand that is overdue; and sales campaigns by auto distributors to win higher bonus from automakers that drove up auto vendors' revenues, with such strong demand likely to continue over the next few months.

Yulon Nissan Motor Co., a joint venture between Taiwan's Yulon Group and Japanese automaker Nissan to sell Nissans in Taiwan, reported June revenue of NT$3.19 billion (US$106.3 million), up 38.4% year-on-year (YoY), with revenue for H1 of NT$18.27 billion (US$609 million), up 26.5% YoY.

Driven by strong sales of its newly launched, own-branded Luxgen U6 crossover and increased auto production orders, Yulon Motor Co., the group's flagship firm and contract assembler for Yulon Nissan, had consolidated revenue of NT$10.13 billion (US$337.6 million) in June, up 46.56% YoY, and January-June revenue of NT$54.36 billion (US$1.81 billion), a 29% YoY growth.

Also an affiliate of the Yulon Group, China Motor Corp., assembler of Mitsubishis in Taiwan, hit the year's second-highest monthly revenue of NT$3.41 billion (US$113.7 million) in June, up 13.% YoY, and January-June revenue of NT$19.97 billion (US$665.7 million), to which the company attributes to smooth sales of the new Mitsubishi Colt Plus and Lancer.

With sales of about 13,300 new cars, Hotai Motor Co. Ltd., the Toyota agent in Taiwan, reported revenue of NT$13.43 billion (US$447.6 million) in June, up 8.9% YoY, with cumulative H1 revenue of NT$79.47 billion (US$2.65 billion).

Sanyang Industry Co., Ltd., Taiwan's  assembler of Hyundais, registered June revenue of NT$3.59 billion (US$119.6 million), up 28% YoY, with cumulative H1 revenue of NT$18.47 billion (US$615.8 million), a 9.9% YoY increase, driven by hot sales of the Santa Fe SUV.

Hotai registered Q1 earnings per share (EPS) of NT$4.11 (US$0.14), making it the most profitable auto vendor among the listed counterparts, followed by Yulon Nissan's NT$3.99 (US$0.13). However Yulon Nissan says that it aims to become the most profitable in Q2 with considerable ROI from Chinese affiliate Dongfeng Nissan and increasing new-car sales in Taiwan.

Industry sources say that July is the last month for auto distributors' sales competition, during which overall new-car sales are likely to reach about 45,000 units, the highest monthly volume this year.

Revenue of Auto Makers & Vendors (Jan.-June 2014)
Company	June Consolidated Revenue	YoY	Jan.-June Consolidated Revenue	YoY
Yulon Motor	NT$10.13 billion	46.6%	NT$54.36 billion	29.0%
China Motor	NT$3.41 billion	13.0%	NT$19.97 billion	7.3%
Sanyang	NT$3.59 billion	28.1%	NT$18.47 billion	9.9%
Hotai	NT$13.43 billion	8.9%	NT$79.47 billion	9.4%
Yulon Nissan	NT$3.19 billion	38.4%	NT$18.27 billion	26.5%
Source: Market Observation Post System (MOPS) and TSE