cens logo

OE Auto Parts Maker Hota Eyes Record Revenue of NT$5.1 B. in 2015

Feb 17, 2015 | By CENS

Hota2015.0215/Industry News, TTG April 2015/1 Caption

OE Auto Parts Maker Hota Eyes Record Revenue of NT$5.1 B. in 2015
Hota Industrial Mfg. Co., Ltd., a Taiwan-based original equipment (OE) supplier of transmission parts to international vehicle manufacturers, recently announced being very confident to see obvious revenue growth in 2015, thanks mainly to increasing order volume from Tesla Motors Inc., American maker of premium electric cars, and expanding shipments of new products to major customer BorgWarner, a major supplier of  powertrain solutions.

news-photoDavid Shen, chairman of Hota, is very optimistic about corporate operations in 2015 due to increasing orders from major customers. (photo from UDN)

David Shen, Hota's chairman, has promised  employees that if Hota achieves its 2015 operation goals, he will raise the year-end bonus to reward earnest efforts. Hota registered consolidated revenue of NT$4.24 billion (US$141.3 million) in 2014, up 13.6 percent from the previous year, a new record high in company history. Institutional investors predict the firm's 2014 net earnings to outstrip NT$700 million (US$23.3 million), while earnings per share (EPS) to exceed NT$3 (US$0.1). Hota has announced to raise salary by 5 percent to 7 percent.

Other Taiwanese auto-parts makers who reported record high revenues in 2014 include Tong Yang Industrial Co., Ltd., reportedly the world's largest maker of aftermarket (AM) plastic body-parts and OE body-parts supplier to international vehicle makers, and TYC Brothers Industrial Co., Ltd., major auto-lamp maker. Both Tong Yang and TYC have mapped out plans to raise salary to be announced February.

A senior Hota executive said increasing new-car sales volume worldwide this year is expected to further buoy Hota's shipments, especially to major customers such as American automakers and international tier-1s. On the other hand, Tesla, also reportedly the world's largest upscale electric-car maker, is scheduled to launch two new models this year, he added, including the four-wheel-drive Tesla S 4WD in the first half, and the electric sport utility vehicle (SUV) Tesla X in the second. As each 4WD vehicle needs two sets of reduction gears, industry insiders said Hota's shipments to the American EV maker is expected to double last year's.

Hota's largest single customer, BorgWarner, is the original equipment (OE) supplier of torque converters and transmission parts to the Big Three automakers in the U.S. In 2015, Hota will start  shipments of new parts to the global tier-1, to whom the shipment value will increase an estimated 25 percent.

In China, Hota's major customers include the Punch's (a global tier-1) Nanjing factory. This year, some 25 million new cars are expected to be sold in China, creating huge demand for continuous variable transmission (CVT) gearboxes made by Punch in China. Hota said its shipments to the customer are expected to at least remain the same level as last year's.

With many big orders booked, Hota is forecast by  institutional investors to report consolidated revenue of about NT$5.1 billion (US$170 million) in 2015, for estimated earnings and EPS of NT$870 million (US$29 million) and NT$3.7 (US$0.12), respectively.

Tong Yang & TYC
To fill robust and rush orders from global customers, especially from replacement-parts distributors in eastern stateside due to the recent blizzard conditions that have ratcheted up collisions in the region, at least two major auto-parts makers have announced overtime work to accelerate shipments.

Both Tong Yang Industrial Co., Ltd., reportedly the world's largest maker of aftermarket (AM) plastic body-parts and an OE supplier to international automakers, and TYC Brothers Industrial Co., Ltd., a major auto-lamp maker in Taiwan, have decided to shorten downtime for production lines during the coming Chinese New Year holidays to fill orders.

Institutional investors forecast that such flooding orders and depreciating NT-dollar against U.S. greenback are expected to help major auto-parts makers hit record-high revenues in January and February.

Michael Chen, Hota's president, said robust orders are forcing the company to shorten the 6-day break to only two; while Tong Yang and TYC also said that they will ask production-line workers to shorten holidays to keep up with rush orders.

Industry sources said that the fourth quarter and first quarter are traditional peak seasons for AM replacement parts, with the record-setting snowfall in northeastern North America this year also helping to drive parts demand. As result, Tong Yang and TYC both registered record high monthly revenues in December 2014, and their January revenues are expected to continue hitting new highs.

Reportedly commanding a share of over 80 percent in the North American market of collision parts (typically bumpers, engine hood, door panels, fenders, radiators, head and tail lamps, side mirrors etc.), Taiwan has been the largest supply base of such products to the world's biggest collision-parts market for many years.


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...