cens logo

Major Taiwanese Auto-parts Exporters Eye Better Operations in H2

Jul 16, 2015 | By Quincy Liang

Several negative factors have impacted Taiwan's auto-parts exports to the United States, the largest market for the items, in the first half, but some positive ones have emerged and are expected to energize local auto-parts makers to improve sales starting in the second half.

Major Taiwanese auto-parts exporters anticipate better second-half operations after negative factors wane.   Major Taiwanese auto-parts exporters anticipate better second-half operations after negative factors wane.

One important factor expected to help major auto-parts exporters in Taiwan is the NT-dollar's recent trend to appreciate against the greenback, which is expected to offset currency-exchange losses in the first half.

Another one, according to industry insiders, is the completion of inventory adjustments by auto-parts importers in North America, who have raised order-placements that will inject growth momentum in Taiwanese suppliers.

With Greece still mired in debt crisis, the NT- dollar has been appreciating against the greenback, the sources said, and if there is no longer significant currency-exchange fluctuation in the short term, most local auto-parts exporters are optimistic about operational results in the second half.

Crispin Wu, president of Taiwan's largest auto-parts maker Tong Yang Industrial Co., also recognized as the world's largest maker of aftermarket (AM) plastic body-parts, the inventory at some western ports in the U.S. and NT-dollar's sharp appreciation in the first half together impacted Taiwan's auto-parts exports to the U.S., whose deleterious effects have gradually waned. Thanks to strong sales of new cars in both the U.S. and China, Tong Yang is expected to win more orders and enjoy sales growth in the second half.

The president further explained that continued increase in new car sales in the U.S. over the past two years will likely lead to increasing demand for AM replacement parts. Tong Yang is scheduled to inaugurate a brand new electro-plating line for AM items with annual production capacity of some 3.12 million large items, Wu added, which is expected to effectively solve the company's supply shortage, as well as further upgrade profit margins.

Wu Jun-ji, chairman of TYC Brothers Industrial Co., Ltd., a leading auto-lamp maker and exporter, recently expressed after his company's shareholders meeting his optimism towards this year's operations, which is expected to be better than last years', as new-car sales in North America have been encouraging, while that in China are expected to top some 25 million units this year. TYC's operation focus this year, the chairman added, is to continue adding the number of lamp models certified to major international standards such as CAPA, TUV etc. and accelerate new-product development.

Exports currently account for 95 percent of TYC's overall revenue, Wu said, and the NT-dollar-to-greenback exchange rate is a key factor affecting operational results. In the first four months this year, he said, TYC reported currency-exchange loss of about NT$100 million (US$3.3 million), but the appreciating NT-dollar is expected to offset the loss in for the remainder of this year.

Ta Yih Industrial Co., the largest original equipment (OE) auto-lamp supplier in Taiwan (to both domestic and foreign customers) and TYC's parent company, are also eyeing lucrative results this year, without too many worries about negative factors. Ta Yih recently claimed that it has won more new orders from big customers such as American automaker Chrysler, Japanese technical partner Koito, and local automaker Luxgen (own-brand of Taiwan's Yulong Group). In addition, sales of its Chinese subsidiary Fuzhou Ta Yih have been increasing rapidly, thanks to increasing orders from customers in China like South East (Fujian) Motor Co., Ltd. (SEM), Koito's Chinese operation, Geely Automobile Holdings Ltd., Dongfeng etc.

Ta Yih forecasts that new-car sales in Taiwan are expected to be stable, while those in major overseas markets like North America are expected to continue increasing this year, both of which are expected to inject growth momentum in Ta Yih's operations in the second half.


Industry In-Focus

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


China's Strong Auto Market to Buoy Taiwan's Related Industries</h2>

China's Strong Auto Market to Buoy Taiwan's Related Industries

Oct 19, 2020

Taiwan's auto parts market has seen positive impacts as the Chinese automotive market continues to grow in its sixth consecutive month. Hotai Motors and Yulon Nissan Motor are the two significant firms enjoying the leverage. The island's related industries are benefiting from the strong performance of China's automotive market. Industry members say as long as competitive Taiwanese firms mainta...


Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions</h2>

Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions

Oct 19, 2020

Industry experts expect to see challenging times ahead for production in the foundry sector, forecasting that the current situation will not let up in the short-term and warns of unbalanced supply-demand next year. During the pre-pandemic era, IC design firms say clients usually made urgent orders to avoid having to manage inventory. Yet, considering limited foundry production volume, clients ...



Industry Reports

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


(File cabinets, photo courtesy of Chyn Fuh Enterprise Co., Ltd.)

Taiwan's Furniture Industry Amid the COVID-19 Pandemic

Oct 16, 2020

The COVID-19 pandemic has deeply affected global and Taiwan's political and economic landscapes. Unlike some industries, the furniture sector did not escape unscathed, facing a squeeze from management and costs. While Taiwan continues to implement a stable, successful outbreak response, the industry has also misjudged the economic downturn duration. The furniture industry has yet to fully recover...


2020 Energy Vision Summit for Green Energy to Kick off in Nov.</h2>

2020 Energy Vision Summit for Green Energy to Kick off in Nov.

Oct 14, 2020

The Taiwanese government has pledged to lead the effort in further developing the sustainable green economy, which is among the sectors highlighted in the Tsai administration's "5+2 Innovative Industries Initiative." Economic Daily News is hosting the "2020 Energy Vision Summit - Green Energy 2.0" on November 11. As one of the government's core policies, improving the island's energy self-suff...



Supplier News

(Electric Vehicle-Photo courtesy of CENS)

Microtest: Precise, Reliable, and Always Improving

Oct 16, 2020

Eyes Stake in 5G Industry with Impedance Analyzer 6632 With greater demand for electronics and manufacturers' need for more precise and diverse applications than before, testing equipment that ensures the reliability, safety, and quality of parts are in hot demand. Founded in 1993, Microtest Corp. is a professional maker and developer of high precision and automatic testing and measurement ins...


(Photo courtesy of Ho Shuan Enterprise Co., Ltd.)

Ho Shuan is Your Choice for Educational Furniture and More

Oct 16, 2020

Insisting that its customers are always a top priority, Ho Shuan Enterprise Co., Ltd.'s R&D team provides the best educational furniture and peripherals, computer tables, and desks to meet all customer requirements. Established in 1986, Ho Shuan has experienced recent sluggish local market performance, but eventually rebounded and came back better than ever. Despite difficulties, the firm neve...

HO SHUAN ENTERPRISE CO., LTD.


(S16-M01 Short Swivel-Handle Cabinet, photo courtesy of Chyn Fuh Enterprise)

Chyn Fuh: A Quality OA Metal Furniture Maker

Oct 16, 2020

Chyn Fuh Enterprise, founded in 1993, entered the market with the sole aim of offering other OA metal furniture options for customers. Since its inception, Chyn Fuh has focused on designing and producing OA metal furniture, providing various office use products, including file cabinets, storage cabinets, office desks, and different assistive metal products. Chyn Fuh partook in many government ...

CHYN FUH ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■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...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

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...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

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...



Exhibition Highlights

Gearing up for Post-COVID Recovery, THS Coming Soon in October</h2>

Gearing up for Post-COVID Recovery, THS Coming Soon in October

Oct 07, 2020

As the only hardware and hand tools trade show taking place this year globally, the three-day Taiwan Hardware Show (THS) will soon kick off on 13th October at the Taichung International Exhibition Center. Positive industry outlook for the post COVID-19 era has led to over 370 companies signing up as exhibitors, in a bid to gear up for a long-awaited economic recovery and plan the next strategic m...


Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...