cens logo

Taiwan's 2014 New-car Sales Hit 9-year High of 423,829 Units

Jan 26, 2015 | By CENS

Driven by strong sales in most months, new-car sales in Taiwan totaled 423,829 units in 2014, up 12% from a year earlier (378,456 units sold) to set a 9-year volume high since 2005 (around 500,000 units sold).

Most auto vendors and distributors are optimistic about continuing rise in demand in 2015, with Hotai Motor Co. Ltd., the local agent of Toyotas and major vendor in Taiwan, said its new-car sales in January, 2015, are expected to outstrip 50,000 units, increasing more than 10% from about 44,000 a year earlier.

In 2014, Hotai led with a market share of 32.9% (33.6% in 2013) by selling 139,240 new cars to retain its No. 1 position for the 13th consecutive year, with six models being top-10 best-sellers on the island.

Yulon Nissan Motor Co., the Nissan agent, trailed in the second spot to take the highest ranking in the domestic market for the first time in the past 10 years by replacing affiliate China Motor Corp. (CMC), the local assembler and agent of Mitsubishi. Yulon Nissan sold 47,741 new cars, the highest annual volume for the company since 2008 to win a market share of 10%.

Imports RiseA noticeable trend in the 2014 Taiwanese automobile market was a 32% market share won by imported cars (136,000 units sold), the highest in 13 years, with Mercedes-Benz, BMW, Lexus, Volkswagen (VW), Audi, and Volvo hitting record sales volumes on the island to enjoy obvious sales growths in the local new-car market.

news-photoMercedes-Benz again led import brands in Taiwan in 2014 by selling more than 19,000 units. (photo from Mercedes-Benz Taiwan).
Another phenomenon was the absence of the high-low-month effect. In the past, most buyers typically purchase new cars in the first half (for higher resale value), but, in 2014, strong demand endured from January to year-end. Hotai said even December saw buoyant sales, with 13,798 new cars licensed in the month or about 2,000 units more than expected, likely due to most buyers wishing to received new cars as soon as possible rather than delay to early 2015.

Huang Ming-hsian, Hotai's assistant vice president, said the year-end purchase willingness was driven by the 10-year replacement cycle, longer new-year holidays, and slipping fuel prices.

Up 7.2% YoYSome 41,799 new cars were licensed in Taiwan in December 2014, a 7.2% year-on-year (YoY) increase, according to statistics compiled by the Ministry of Transportation and Communications (MOTC).

New-car sales in Taiwan last year outstripped the original forecasts made by the top-two automobile conglomerates on the island, Hotai and Yulon, which predicted that the year-end total would be 415,000 to 420,000 units. Post-election and plummeting fuel price effects drove demand for performance cars, multi-purpose vans (MPVs), sport utility vehicles (SUVs), and full-sized passenger cars. Leveraging the depreciating Japanese yen, some local Japanese-car vendors provided incentives to further stimulate purchase willingness.

Many industry experts forecast that strong demand will continue into 2015 to set another new-car sales record (or 10-year high).
news-photoThe LUXGEN U6 crossover launched in 2014 helped the Taiwanese brand enjoy 104.3% YoY sales increase in 2014, the highest among counterparts. (photo from LUXGEN)
Trends in 2014In 2014, different crossover models with multi-functionality and lighter-smaller SUVs with mild cross-country function became a new market mainstream in Taiwan. As such Yulon's own LUXGEN found many buyers for its newly launched U6 crossover and achieved record annual sales volume since the brand's establishment more than three years ago. Other models in the expanding product segment included Toyota RAV4 (best-seller in segment), Honda CR-V, Mitsubishi Outlander, Hyundai iX35, Ford Kuga etc.

More specifically, according to MOTC's statistics, sales of SUVs in December, 2014, increased 27% YoY and 75% month-on-month (MoM), the highest growth rates among all segments. The segment expansion implies, according to industry experts, that local consumers no longer consider fuel efficiency as top priority due to  falling fuel prices, instead opt for more spacious and higher-performance cars.

Japan-vs-Europe in 2015Competition between Japanese and European car vendors in Taiwan will intensify in 2015, industry sources say, and the battle is just heating up.

The cheaper Japanese yen has helped strengthen cost competitiveness of Japanese models,  imported and locally assembled, with Japanese-car vendors to work harder to import more products to the island to diversify product lineup and expand a customer base.

Mazda Taiwan, for example, used to locally produce the popular Mazda 3 sub-compact sedan for local sales, but has turned to directly import the re-styled Mazda 3 from Japan to have immediately won 1,200 firm orders (outstripping the local subsidiary's annual quota for the model). That, industry sources say, shows the coming of a new trend where local Japanese-car vendors will introduce and sell more imports.

In addition, CMC (agent of Mistubishi), Hotai (Toyota and Lexus), Yulon Nissan (Nissan and Infiniti) have been aggressively strengthening import lineups, targeting to win shares from European counterparts that have long dominated the import-car market in Taiwan.

Euro-car Sales in 2014The top-two import brands in Taiwan, Mercedes-Benz and BMW, sold about 19,300 and 16,900 cars on the island in 2014, leading many brands with locally-assembled models; while VW also sold about 13,400 units last year.

With better brand image and rising cost competitiveness thanks to the depreciating euro, sales of European imports have been increasing in recent years. However, industry insiders say, many European brands have not reduced prices even though the euro-U.S. dollar exchange rates have dropped to recent-year lows, attributing such a phenomenon to relatively-low price sensitivity of luxury-car buyers.

New-car Sales by Top-10 Vendors in Taiwan (2014)
Vendor/Brand
Dec. 2014 Volume
Share
YoY
Jan.-Dec.
2014

Hotai Motor / Toyota
13,798
33.0%
5.0%
139,241

Yulon Nissan / Nissan
4,164
10.0%
-4.4%
47,741

Honda Taiwan / Honda
3,539
8.5%
14.3%
24,599

CMC / Mitsubishi
3,483
8.3%
2.3%
43,538

Ford Lio Ho Co. / Ford
2,661
6.4%
6.1%
24,703

Pan German / BMW
2,136
5.1%
8.5%
16,930

M-B Taiwan / Mercedes-Benz
1,796
4.3%
6.2%
19,309

Sanyang / Hyundai
1,726
4.1%
64.2%
15,906

Taikoo / VW
1,375
3.3%
31.7%
13,472

Luxgen Motor / LUXGEN
1,101
2.6%
104.3%
16,687

Overall Market
41,799
100.0%
7.2%
423,829

Source: MOTC.


Industry In-Focus

Taiwan's Metal Forming Machinery Industry Outlook in 2019 </h2>

Taiwan's Metal Forming Machinery Industry Outlook in 2019

Feb 15, 2019

Taiwan Association of Machinery Industry Metal Forming Machinery Committee Chairman and Forwell Precision Machinery Company President Hsiao Wen-long touched base on Taiwan’s metal forming machinery industry scene at the 2019 Taipei Int'l Machine Tool Show pre-show press conference. The 2019 Taipei Int'l Machine Tool Show (TIMTOS) is slated to kick off on March 4 to March 9 at Taipei World Trad...


Milling Head Parts Producer Kaen Gong Yang Offers Only the Best</h2>

Milling Head Parts Producer Kaen Gong Yang Offers Only the Best

Feb 15, 2019

Kaen Gong Yang Machinery Co., Ltd., founded in 2018, is a subsidiary under milling head heavyweight Gong Yang Machinery Co., Ltd., professionally manufacturing CNC series milling heads, universal milling heads, extension heads, 90° milling heads, angular milling heads, coupling heads and vertical and horizontal heads, as well as customizable options. Among those products are the firm’s “automa...

KAEN GONG YANG MACHINERY CO., LTD


Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?</h2>

Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?

Jan 29, 2019

Taiwan’s hand tools industry has always enjoyed a positive global reputation, thanks to industry members’ strive to improve and refine their products in face of an increasingly, competitive industry. In 2018, the island’s hand tool production kicked off to a slow start, as it was coming back from 2017’s fourth quarter boom season; the first quarter produced NTD$16.1 billion, a slight 2.7% decr...



Industry Reports

Taiwan's Metal Forming Machinery Industry Outlook in 2019 </h2>

Taiwan's Metal Forming Machinery Industry Outlook in 2019

Feb 15, 2019

Taiwan Association of Machinery Industry Metal Forming Machinery Committee Chairman and Forwell Precision Machinery Company President Hsiao Wen-long touched base on Taiwan’s metal forming machinery industry scene at the 2019 Taipei Int'l Machine Tool Show pre-show press conference. The 2019 Taipei Int'l Machine Tool Show (TIMTOS) is slated to kick off on March 4 to March 9 at Taipei World Trad...


Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?</h2>

Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?

Jan 29, 2019

Taiwan’s hand tools industry has always enjoyed a positive global reputation, thanks to industry members’ strive to improve and refine their products in face of an increasingly, competitive industry. In 2018, the island’s hand tool production kicked off to a slow start, as it was coming back from 2017’s fourth quarter boom season; the first quarter produced NTD$16.1 billion, a slight 2.7% decr...


Electric Cars Under Taiwanese Supply Chains Expect to See Huge Demand</h2>

Electric Cars Under Taiwanese Supply Chains Expect to See Huge Demand

Jan 16, 2019

Electric cars are expected to enter a fast-growth period this year – media reports indicated that traditional automotive heavyweight Hota Industrial Mfg has seen a huge increase of orders from one of its major clients, Tesla Inc. Reports indicate that Tesla is likely to become Hota’s biggest client this year should the rumors turn out true. Also, Ford’s electric cars is currently in its mass p...



Supplier News

Milling Head Parts Producer Kaen Gong Yang Offers Only the Best</h2>

Milling Head Parts Producer Kaen Gong Yang Offers Only the Best

Feb 15, 2019

Kaen Gong Yang Machinery Co., Ltd., founded in 2018, is a subsidiary under milling head heavyweight Gong Yang Machinery Co., Ltd., professionally manufacturing CNC series milling heads, universal milling heads, extension heads, 90° milling heads, angular milling heads, coupling heads and vertical and horizontal heads, as well as customizable options. Among those products are the firm’s “automa...

KAEN GONG YANG MACHINERY CO., LTD


Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...