cens logo

Kung Long Garners Order for Start-stop Batteries from Honda

Jun 15, 2016 | By Steve Chuang

Kung Long has supplied its start-stop batteries to Honda for use in Honda’s PTWs sold in Vietnam (photo courtesy of UDN.com).Kung Long has supplied its start-stop batteries to Honda for use in Honda’s PTWs sold in Vietnam (photo courtesy of UDN.com).
The Taiwan-based Kung Long Batteries Industrial Co., Ltd., a specialized manufacturer of lead-acid batteries and listed in Taiwan bourse, has garnered the first time an order from Honda for start-stop batteries and already begun delivery, confirmed by Kung Long's general manager J.C. Lee right after the firm's investor conference held on June 13.

The order will certainly pump considerable growth momentum into Kung Long's performance for a couple of reasons.

Lee stated that lead-acid batteries applied in a start-stop system (also known as idling stop system as promoted by Honda) of a motorcycle or a scooter are subject to stricter performance standards than conventional models, and therefore generate over 50 percent higher margin. In other words, Lee stressed, the order will help his company to drive overall gross profit rate in the short term.

From another viewpoint, Kung Long, which now has a manufacturing base in Vietnam, is likely to better strengthen its presence in the Southeast Asian market through the said deal. According to Kung Long, the batteries ordered by Honda will be all shipped to the latter's motorcycle assembly plant in the country, where annual sales of powered two-wheelers (PTW) reach some 3 million units, with the Japanese firm commanding a dominant market share of around 70-80 percent.

Besides, Lee indicated, years of brisk economic growth of the country have seen local PTW riders increasingly prefer repair and maintenance services at authorized service stations, hence propelling market demand for OE (original equipment) parts and components and motivating PTW brands to actively expand their service networks across the country. Under the scenario, Lee believes overall shipments of lead-acid batteries by his company's Vietnam base in the local OE segment is expected to grow steadily in the years to come, especially when it has just tapped Honda's supply chain of start-stop batteries.

Noteworthy is that Kung Long has started up the ninth plant in the Vietnam manufacturing base recently, which is estimated to help boost the base's overall output by 20 percent when being in full swing. Plus, the company is scheduled to kick off new plant construction plans sometime in the next two years, to ensure its sustainable development in the emerging country.

At the said investor conference, Kung Long reported combined revenue of NT$6.943 billion (US$216.96 million) and net profits of NT$768 million (US$24 million), or NT$9.42 per share, for last year, the best performance the firm has ever scored in history.


Industry Reports

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


The US president Donald Trump
(photo courtesy of Agence France-Presse)

S. Korea most affected by U.S.-China trade spat: report

Dec 10, 2019

South Korea may have been hit the hardest among major economies by the protracted trade dispute between the United States and China due to its high dependence on exports to the countries, a report said Tuesday.The U.S. and China are the world's largest importers of South Korean products with shipments to China accounting for more than one-quarter of South Korea's overall exports last year, accord...


Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina </h2>

Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina

Dec 05, 2019

Donald Trump will reimpose tariffs on imports of steel and aluminium from Brazil and Argentina after accusing the countries of a “massive devaluation” of their currencies that hurt US farmers. The move — which was announced by Mr Trump on Twitter on Monday — sharply escalates trade tensions with the two struggling Latin American economies as they build closer ties with China.The announcement ...



Industry In-Focus

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


This is the exterior of LC Fuel Tank's new plant which are being constructed in Xiluo Township. (photo courtesy of LC Fuel Tank)

Inevitable Rise of EV Spurs Fuel Tank Maker into Classic Car Industries

LC Fuel Tank Targets EU's Classic Car Market

Sep 05, 2019

As a top professional fuel systems manufacturer in Taiwan, and a global player in the automotive aftermarket industry, the fact that car makers are investing more resources into the electric vehicle (EV) than conventional vehicles powered by engine around the world is a challenging situation that LC Fuel Tank Manufacture Co needs to deal with. There’s no fuel tank in EV, only batteries. Each y...

LC FUEL TANK MANUFACTURE CO.


Taiwan's First Hand Tools Research and Testing Center Opens in Taichung on May 31(photo taken by Sung Chien-sheng)

Taiwan's First Hand Tools Research and Testing Center Opens in Taichung

Jul 23, 2019

In response to upgrading Taiwan’s hand tools industry and localizing services to the industry chains, China Steel Corporation (CSC), Taiwan Hand Tool Manufacturers' Association (THTMA) , Metal Industries R&D Center (MIRDC), and Corporate Synergy Development Center (CSD) have jointly established the research and testing center for hand tools in Taichung Industrial Park at the opening ceremony on M...



Supplier News

Vacuum Carbon Fiber Aero kits-super is extremely light with high hardness and high quality。

TWL-CARBON Specializes in Carbon Fiber Components of High-End Sport Cars

Nov 29, 2019

■Lo Su-hua Founded in 2001, TWL started its career as auto parts and aftermarket accessories trading company while entering the field of OEM of carbon fiber auto parts in 2012. However, with many years of manufacturing experience, TWL found a problem that has existed so long in the carbon fiber auto parts industry–the prices in the carbon fiber auto parts’ material are hugely different and...

Twlcarbon CO. LTD.


Pneumatic tools Airboss invented attracted buyers attention in exhibitions (photo courtesy Airboss)

Airboss air tools co., ltd., the shortest pneumatic tools attracted attention

Nov 19, 2019

■Lo Su-hua Concentrated on R&D, after-service and production, the Taiwan-based Airboss Air Tool Co., Ltd., a world-caliber supplier of pneumatic tools, which specialized in manufacturing compacted, light-weight, user-friendly pneumatic tools, high safety. The products are made with magnesium alloy and many specialties as lightweight, high precision, high rigidity. They are not only eco-fri...

AIRBOSS AIR TOOL CO., LTD.


Hsin Yi Chang Industry Co., Ltd showcases their quality vehicle visors, which are designated products by global big names. (photo courtesy of Hsin Yi Chang)

Global Vehicle Visor Player Hsin Yi Chang Seeks to Woo New Clients

Nov 19, 2019

■Tseng Lung-nan Equipped with a top-down supply chain, Hsin Yi Chang Industry Co., Ltd. is a company that has over 38 years of experience in vehicle visors and various precise acrylic molding. The firm markets its brand under “HIC” in Taiwan and many countries worldwide. HIC has been rolling out new vehicle visors, compatible with over 2,000 car models and types. Hsin Yi Chang General Manag...

HSIN YI CHANG INDUSTRY 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

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition </h2>

Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition

Dec 02, 2019

As industry players approach the end of the year, Automechanika Shanghai 2019 participants look ahead at the latest products, services and technologies of the future. The show opens tomorrow until 6 December at the National Exhibition and Convention Center, (Shanghai). Being recognised as one of the most influential automotive trade fairs in the industry, it continues to act as a central hub for ...


59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products</h2>

59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products

Nov 12, 2019

Organised by the Hong Kong Trade Development Council (HKTDC), the 21st Hong Kong International Lighting Fair (Autumn Edition), the fourth Hong Kong International Outdoor and Tech Light Expo and the 14th Eco Expo Asia concluded with more than 59,000 buyers from 135 countries and regions visiting the three fairs. HKTDC Deputy Executive Director Benjamin Chau said: “Despite the recent public inc...