cens logo

Volvo to Invest US$100 M. in Taiwan for Sales Expansion

Jul 27, 2015 | By Quincy Liang

Volvo Car Taiwan Ltd., the first wholly-owned local subsidiary of the foreign carmaker Volvo Car Corporation (VCC) of Sweden, recently announced to kick off another investment project on the island to introduce more new models and renovate all its sales points throughout Taiwan starting this year, with the targeted investment to be about US$100 million, the largest since the global financial meltdown.

L.J. Chen, president of Volvo Car Taiwan, introduces the new Volvo XC90 LSUV in Taiwan as he announces Volvo's US$100 million investment project to expand local sales. (photo from UDN) L.J. Chen, president of Volvo Car Taiwan, introduces the new Volvo XC90 LSUV in Taiwan as he announces Volvo's US$100 million investment project to expand local sales. (photo from UDN)

Volvo Car Taiwan was set up in 2002, and in 2008 the Swedish headquarters decided to pour about US$33.3 million into overall showroom renovation on the island, a project that was sidelined till 2010 by the global financial tsunami from late 2008 to 2009.

According to Volvo Car Taiwan's plans, the subsidiary is scheduled to increase its showrooms in Taiwan from 18 to 22 or 24 over three years. To meet the required Volvo Retail Experience (VRE) criteria, to set up a new showroom in Taiwan costs between NT$200 million to NT$300 million (US$6.67 million to US$10 million), while renovation of an existing dealer takes about NT$50 million to NT$100 million (US$1.67 million to US$3.33 million).

In addition to dealership construction and renovation, Volvo Car Taiwan also plans to restart recruitment of new distributors, so as to find more good distributors to build up stronger sales force against other imported luxury car brands. Starting 2016, the local subsidiary said the brand-new Volvo S90 luxury sedan and V90 luxury sport utility vehicle (LSUV) will be introduced to local consumers, and the two models are expected to further raise the local sales volume.

L.J. Chen, Volvo Car Taiwan's president, pointed out the newly introduced Volvo XC90 LSUV will be a significant addition for Volvo Car Taiwan to win higher share in the booming domestic SUV segment, while his company has been preparing the local sales of the new model.

Chen said that Volvo Car Taiwan aims to sell 5,500 new cars on the island this year, crossing an important volume threshold to motivate local distributors to jointly invest in future business development. As of the first half this year, Volvo has won an 8.8 percent share in the local luxury-car segment, and the local subsidiary targets a 10 percent share buoyed by expanding sales.

A local Volvo distributor said that Volvo's new investment plan in Taiwan indicates profitable operations, as well as a clear sign of, after Chinese automaker Geely Automobile Holdings Ltd.'s takeover of the Swedish nameplate, the company's new strategies to develop sales worldwide.

Industry sources noted that after Volvo was acquired by Geely in 2010, the brand's operation in Taiwan seemed to have taken a backseat in the past few years. But the new investment project represents Geely's restructuring plan for Volvo has achieved a scheduled goal, with the next stage being to aggressively develop the brand's sales in different markets.

Volvo is not the first international luxury-car brand to have invested in Taiwan to further grow sales. Earlier the wholly-owned local subsidiaries of German brands Mercedes-Benz and Audi had also poured sizable sums in expansion to have reaped fruitful rewards in recent years. Although BMW has not set up a fully-owned local subsidiary, the German nameplate has been pressuring its local distributor Pan German Motors Ltd. to steadily expand; while Hotai Motor Co. Ltd., the Lexus agent in Taiwan, is also expected to carry out investment projects to join the luxury-car sales battle on the island.

The import-car segment in Taiwan has been rapidly expanding in the past two to three years, and imports have achieved record high market share for some time. Driven by the 10-year replacement peak in the local automobile market, the uptrend in prices of locally assembled cars, and introduction of price-friendly, entry-level models by international luxury brands in Taiwan, local consumers have more reasons to change new-car purchase habits by considering imported makes and models.

Imported cars used to account for sub-20 percent market share over the years in Taiwan, but such figure has risen to more than 45 percent, or even 50 percent in the past two years. Such market share shifts between imports and locally-assembled cars are to intensify as many local agents of international brands have terminated some locally-made models by direct import, especially mid-sized sedans.


Industry In-Focus

South Korea March Output Surges as China Factory Shutdowns</h2>

South Korea March Output Surges as China Factory Shutdowns

Apr 30, 2020

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: Deglobalization is a Must</h2>

Minister of Economy: Deglobalization is a Must

Apr 29, 2020

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...


Three Models of Taiwanese Businessmen Entering the Mainland Electric Vehicle Supply Three models of Taiwanese businessmen entering the mainland electric vehicle supply Chain</h2>

Three Models of Taiwanese Businessmen Entering the Mainland Electric Vehicle Supply Three models of Taiwanese businessmen entering the mainland electric vehicle supply Chain

Feb 04, 2020

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 ...



Industry Reports

Bosch Sees global Production Down 20% in 2020</h2>

Bosch Sees global Production Down 20% in 2020

Apr 30, 2020

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...


South Korea March Output Surges as China Factory Shutdowns</h2>

South Korea March Output Surges as China Factory Shutdowns

Apr 30, 2020

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: Deglobalization is a Must</h2>

Minister of Economy: Deglobalization is a Must

Apr 29, 2020

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...



Supplier News

Ching Mars Corporation</h2><p class='subtitle'>Strobe lights, light bars and sirens, LED light bars, signal lights, warning lights and traffic batons</p>

Ching Mars Corporation

Strobe lights, light bars and sirens, LED light bars, signal lights, warning lights and traffic batons

Apr 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....

CHING MARS CORPORATION


YihFeng Industrial Co., Ltd.</h2><p class='subtitle'>Aluminum forging, die casting, CNC machining, auto parts, sporting good parts, etc.</p>

YihFeng Industrial Co., Ltd.

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...

YIH FENG INDUSTRIAL CO., LTD.


Yang San Enterprise Co., Ltd</h2><p class='subtitle'>power window switches, fuel tank sensors, vehicle speed sensor</p>

Yang San Enterprise Co., Ltd

power window switches, fuel tank sensors, vehicle speed sensor

Apr 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 SAN 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

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

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...


Ushering in Metalworking Intelligence,  Unlocking Unprecedented Opportunities</h2>

Ushering in Metalworking Intelligence, Unlocking Unprecedented Opportunities

Apr 06, 2020

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...


ITES 2020: COVID-19 Manufacturing Exhibition Crisis Response</h2>

ITES 2020: COVID-19 Manufacturing Exhibition Crisis Response

Feb 25, 2020

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...