Peak AM auto parts season invites growth amid supply chain tangles

Tong Yang, a leading manufacturer of automotive aftermarket plastic parts and components, has entered its peak season in terms of revenue. In November 2021, the company reported its self-consolidated revenue was at NTD$1.669 billion, an increase of 4% over the same period last year and a 6% growth over the previous month.

In the first 11 months, the accumulated consolidated revenue of 16.684 billion yuan has increased by 6% compared with last year's same period. This year, OEMs had been continuously affected by the shortage of chips, high freight rates in the AM market, port congestion, and delayed shipments from customers.

Tong Yang's AM business had self-consolidated revenue of NTD$1.079 billion in November, an increase of 5% over the same period last year. In the first 11 months, the accumulated consolidated revenue was NTD11.732 billion, a cumulative increase of 4% over the same period last year.

As Taiwan's auto parts AM market is largely focused on the U.S., shipping congestion has made it difficult to do business with overseas clients. However, shipping woes are expected to continue to the end of 2022.

Port of LA Gene Seroka told the media that the supply chain disruption is unlikely to be resolved by the end of 2022 as there are too many containers backed up, as well as the COVID-19 pandemic and labor shortages on top of everything. In anticipation of consumer demand during the holiday season in the U.S., as well as China's Spring Festival next year, retailers and companies have sought to make orders ahead of time, furthering the shipping delay.