Taiwanese Makers of AM-based Auto Parts Feel Bright About Global Market Despite Uncertainty

There are many reasons that cause the optimistic vibes among Taiwanese manufacturers of AM-based (aftermarket-based) auto parts despite uncertain outlook for global economy due chiefly to the Trump Administration’s reciprocal tariffs on almost all of the United States’ trade partners throughout the world.

The Trump Administration’s 25% tax levy on imported automobiles and certain automobile parts, Taiwan’s auto-parts insiders note, would push up the cost for new cars by at least 12.5%, or US$3,000 per vehicle, whether the cars are built Stateside or imported from overseas. Importers will face a 25% more cost while carmakers moving production lines to the U.S. soil to avoid the levies will tackle with the generally higher land, labor and infrastructure costs in America than in other countries.

Higher Cost Poses Potential Business to Aftermarket Parts

Higher costs would, in return, dampen American consumers’ willingness to trade in their current cars for new models, pushing the consumers towards choosing to maintain and repair their current vehicles as much as possible with AM parts. Taiwan’s industry insiders estimate the running automobiles in North America have served an average 12.6 years and over 110 million of the vehicles are needing maintenance and repairs.

By region breakdown, America remains the largest export market for Taiwan’s AM-based auto parts and accessories, accounting for 50.63% of the total Taiwan exports of NT$228.5 billion (US$7.6 billion at US$1:NT$30) in 2024 alone, according to data compiled by Taiwan Transportation Vehicle Manufacturers’ Association and the Ministry of Economic Affairs. Europe came next, with an estimated, 18.50% of the Taiwan exports; followed by Japan’s 5.28%; Mexico’s 3.70% and Australia’s 2.72%.

Also data from the two Taiwan organizations show that from 2022 to 2024, the Taiwan exports amounted to NT$253 billion (US$8.43 billion), NT$225.4 billion (US$7.5 billion), and NT$228.5

billion (US$7.6 billion), respectively. The two organizations point out that although the exports dropped in 2023 year on year, the 1.4% increase year on year in 2024 suggested the global market for AM parts was recovering and the Taiwanese manufacturers were still firmly holding unmatched positions in the global market.

Taiwanese Auto-Parts Makers Develop Global Presences to Maintain Competitiveness

To cope with the ever-changing international trade environments and supply chain adjustments, Taiwanese auto-parts makers have been actively building their global presences to maintain competitiveness. For instance, the Tong Yang Group, currently Taiwan’s No.1 body-parts maker, has operated production facilities in Texas for over 30 years; Hushan Autoparts Inc., a leading doorhandle maker, has opened factories in Vietnam and the United States; and radiator maker Cryomax Cooling System Corp. has set up production lines in Mexico. World Known Precision Industry Co., Ltd, currently Taiwan’s No. 1 maker of commercialvehicle parts, is constructing a production facility in America for US$4 million to meet American customers’ need after opening a warehouse.

Lamp player TYC Group, transmission-system maker Hota Group, fastener heavyweight Sumeeko

Industries Co., Ltd., and metal-parts maker Eurocharm Group are also working hard on their plans to open factories in America. Global strategies have helped the Taiwanese manufacturers dodge risks from tariffs, pare down logistics costs, and draw them closer to local customers.

Blizzards that stormed across North America last winter and including more AM-based parts in claim payout by property insurers have together brought Taiwanese makers of AM-based parts instant, hefty orders.

Tong Yang saw revenue score record high of NT$25 billion (US$833 million) in 2024, with aftertax net income soaring around 45% year on year. In the first quarter of this year alone, the company’s revenue of NT$7.29 billion (US$243 million) hit new high and marked an 18.8% increase year on year.

Hushan made NT$374 million (US$12.5 million) in pre-tax net income and NT$4.34 per share throughout 2024.

Gordon Auto Body Parts Co., Ltd. saw revenue rise 11.79% year on year in 2024 to NT$3.016 billion (US$100 million), with after-tax net income surging close to 70%.

Brake-system maker Yusin Holding Corp. saw annual revenue hit new high at NT$3.94 billion (US$131.4 million) in 2024, with after-tax net income rising over 12% year on year.

United Alloy Tech Co., a maker of alloy-forging parts, saw its annual revenue soar 32% to hit new high of NT$4.75 billion (US$158.4 million) throughout 2024.

2025 Likely to Be Another Harvest Year for Taiwan’s AM Parts Makers

Taiwan’s industry insiders estimate that after reaping the harvest in 2024, Taiwanese AM-parts makers are likely to see their sales grow further in 2025.

Taiwan’s AM-based parts industry has been widely known for its high product quality, high manufacturing flexibility, and amazing cost efficiency. Mostly operating at medium and small sizes, the Taiwanese manufacturers are very nimble and sensitive to market shifts. Thus, they can produce highly tailor-made, small-quantity products that cater to older cars in diversified specs, making them attractive to maintenance and repair market.

More ICT Technologies are Integrated into Taiwan’s AM Parts

In addition, the manufacturers have highly integrated their production with precision -manufacturing and electronics technologies. Taiwan is the home to world’s leading electronics, computing, telecommunications, and semiconductor manufacturers in particular. Against the backdrop, Taiwanese auto-parts makers have introduced sophisticated LED auto lamps; LCD-screen instrument panels; and Advanced Driver Assistance System (ADAS), which is a suite of technologies designed to aid drivers in various aspects of driving, including navigation.

Along with vehicles trending towards“intelligentization” and electrification, electronic devices, such as ADAS, Electronic Control Unit (ECU), and Intelligent Auto Headlights, will soon be built into cars in big way. According to S&P Global Mobility, the value of microchip contents in cars will reach approximately US$1,400 per vehicle in 2028, presenting Taiwanese auto-parts makers a lucrative business opportunity given Taiwan’s unmatched chip-making and innovative design capabilities.

Industry watchers project Taiwan to put out over NT$600 billion (US$20 billion) worth of automotive electronics throughout 2025, with the devices likely to account for some 50% of the cost of a car.

The Environmental, Social, and Governance (ESG) framework, which is used to assess a company's sustainability and ethical impact, is also inspiring Taiwanese AM-parts makers to proactively embark on development of sustainable materials and recyclable technologies to meet American and European environment criteria and upgrade their international competitiveness.

When it comes to the prospect of 2025, most of Taiwanese AM-parts makers are bright about their business in spite of the lingering inflation pressure and market fluctuation that are shadowing global economy. They point out that global demand for AM parts remains strong regardless of these uncertain factors.