A total of 34,478 new cars were sold in Taiwan during May, down 6.1 percent year-on-year (YoY) and a minor 0.5 percent month-on-month (MoM) drop, according to statistics compiled by the Ministry of Transportation and Communications (MOTC). Industry experts attribute such drops to May being the month when taxes are filed and paid, hence leaving consumers busy with the annual task and the perception of having less disposable cash to result in sales declines of most locally assembled cars (except Honda Taiwan and Mitsubishi), despite luxury imports still showing clear volume growths.
Fierce competition remained unabated among the import segment, especially between the two German brands of Mercedes-Benz and BMW. By launching an increasing number of models in Taiwan, the marque known for its kidney-shaped grill achieved sales volume nearing the long-term leader with the coveted tri-star badge in recent months. In May, 1,742 Mercedes were licensed, compared to 1,715 BMWs.
Sagging Purchase Willingness
Veteran automotive market observers point to sagging willingness to buy new cars over the past few months in Taiwan compared to that in 2014, despite all local auto vendors dealers have been investing more and more resources into marketing campaigns. The observers, however, do not offer reasons for such downturn in willingness. It is certainly possible that the recently reported slowdown in Taiwan's exports and signal of downturn in economic activity play a role.
To maintain or try to elevate market-share performance, some auto vendors might try to increase sales volumes by pre-licensing some new cars to resell them as "new secondhand models" at discount to consumers. However, market observers say that such measure, quite common among vendors, might result in a malicious cycle especially during market downturns, not to mention sacrificing profit margins, percentage of which can be as important as sales volume. For example, selling one car for a profit of US$1,000 makes more sense than selling three at per-unit profit of US$50 or total profit of US$150.
To evade possible malicious cycle, Hotai Motor Co. Ltd., Taiwan's agent of Toyota and Lexus and the No. 1 auto vendor 14 years in a row by sales volume, despite having carried out a sales competition between distributors, decided to return to normal operations without over pressuring distributors. Hotai's major rivals, in the wake of relaxed sales campaigns by Hotai, also eased off high-pressure tactics that aimed to raise sales. As a result, industry insiders say the sales volumes of locally-assembled makes and models dropped.
|Top-10 Vendors' Sales in Taiwan (May 2015)|
|| May Volume
| Hotai Motor / Toyota
| Yulon Nissan / Nissan
| CMC / Mitsubishi
| Honda Taiwan / Honda
| Ford Lio Ho Co. / Ford
| M-B Taiwan / Mercedes-Benz
| Mazda Taiwan / Mazda
| Sanyang / Hyundai
| Luxgen Motor / LUXGEN
| Overall Market
| Source: MOTC
|Sales of Imported Cars in Taiwan (May, 2015)|
|| May Volume
|| Market Share
| Overall Imported
| Source: MOTC, U-Car
South Korea’s March factory output jumped by the most in 11 years as demand for display panels and cars received an unexpected boost from lengthy shutdowns in competing Chinese factories amid the coronavirus pandemic. Industrial output surged by a seasonally adjusted 4.6% in March from a month earlier, government data showed on Wednesday, marking the biggest expansion since a 7.3% jump in Febr...
Minister of Economy Shen Rongjin pointed out yesterday (28) that from the US-China trade war to the spread of the new crown pneumonia epidemic, the "de-globalization" of manufacturing is now a key issue for companies. In addition to the use of Industry 4.0 Internet of Things remote control machines , And also readjust the global stronghold. He also said that companies including information and c...
China is the world's largest producer and seller of electric vehicles. In 2020, electric vehicle sales will look at 2 million units, driving the rapid growth of industries such as batteries, connected cars, autonomous driving and charging equipment. Although the Chinese electric vehicle market is dominated by domestic production and domestic sales, due to the current lack of technology and R & D ...
Robert Bosch said it expects automotive production to fall by at least 20 percent this year, as the coronavirus pandemic slams the brakes on factory production lines and saps demand. "We are bracing ourselves for a global recession that will also have a considerable impact on our own performance in 2020," Bosch CFO Stefan Asenkerschbaumer said in a statement on Wednesday. "Given the many im...
Strobe lights, light bars and sirens, LED light bars, signal lights, warning lights and traffic batonsApr 08, 2020
Established in 1985, China Mars Corporation is a specialized maker of various strobe and warning lights for use in vehicles, with nearly 30 years of expertise to be well recognized by professionals all over the world Decades of focus on R&D and customer satisfaction has seen company build a solid ground in the global supply chain of auto strobe lights and served capably as a world-caliber OEM....
Aluminum forging, die casting, CNC machining, auto parts, sporting good parts, etc.Apr 08, 2020
Founded in 1973, YihFeng Industrial Co., Ltd is a professional company specializing in aluminum forging, die-casting and computer numeric control (CNC) machining. The firm takes pride of its complete product lineup covering a large variety of auto parts, motorcycle parts, bicycle parts, 3C (computer, communication, and consumer electronics) parts, sporting-goods parts, among others. With ov...
power window switches, fuel tank sensors, vehicle speed sensorApr 08, 2020
Yang San Enterprise Co., Ltd. specializes in the development and production of various automotive switches, focusing on automotive power window switches. In response to buyers’ requirements and changes in the market, the firm has actively developed new products for automotive sensors and controllers, including fan control modules, speed sensors, fuel level sensors, etc. Products are suitable for ...
■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...
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...
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...
Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...
The digitization of metalworking industry is being accelerated by the advent of emerging and disruptive technologies which are to be the next era of global growth and innovation. At METALEX Vietnam 2020, industrialists will learn how they can enhance productivity and product value and how their factories could be transformed through metalworking intelligence by capturing, tracking, measuring, int...
Since increasingly severe COVID-19 epidemic spread out in past 30 days, China economy has been dampened. Greater global connectivity and supply chain dependency on China and reliance on Chinese consumption currently, without a doubt, COVID-19 triggers a greater economic fragility. Emergent Production Adjustment As the fight against the novel coronavirus outbreak intensifies, Chinese local a...