Taipei, Jan. 8, 2008 (CENS)--Sales of new cars in Taiwan continued to plunge for the second consecutive year in 2007, to just 326,777 units, down 11% from previous year and a 20-year low, according to statistics compiled by the Ministry of Transportation and Communications (MOTC).
Most local automakers, however, are optimistic about the 2008 market and estimated an about 10% growth. Several leaders in local automotive industry, including Kenneth Yen, CEO of the Yulon Group, the largest automobile-manufacturing conglomerate in Taiwan comprising four locally made car brands including Nissan, GM, Mitsubishi, and Chrysler, deemed that the conditions after the President election in March would decide the market development.
Domestic new-car sales volume was 516,000 units in 2005 and suffered an around 40% decrease in the past two years. Except for Honda Taiwan Motor Co., a 100%-owned local subsidiary of Honda Japan, enjoyed a 30% growth, all the top-eight local automakers suffered sales decreases.
In 2007, only Hotai Motor Co. Ltd., the agent of locally made Toyota and imported Lexus cars registered new-cars sales outstripping 100,000 units, over two times that of the No. 2 China Motor Corp. (Mitsubishi). Hotai won a market share of 32.1% in 2007, further consolidating its leading position in domestic market.
Some local automakers and imported-car agents withdrew from the business in 2007 due to the shrinking market, including Formosa Automobile Corp. (which locally produced few models authorized from Daewoo of South Korea and sold imported Skoda models) and local agent of imported Citroen products from France.
Amid the M-shape consumption mode, however, sales of imported luxury brands such as Mercedes-Benz, BMW, Lexus etc. climbed in 2007 with a reverse momentum against the overall plunging market.
Quoting a example happed in South Korea several years ago, some optimistic automakers said that new-car sales in the neighboring nation suddenly plunged to only about 800,000 units from an average of 1.5 million units when South Korea was seriously affected by the Asian financial storm, but soon recovered to a one million level. So they predicted that the local automobile market would begin rebounding in 2008.
Hotai forecasted a 360,000 overall sales in Taiwan in 2008, making it the most optimistic local player, most others estimated the annual volume between 340,000 and 350,000 units. Some initial signs might more or less explained automakers` optimism, including smooth sales of some new locally made models such as Nissan Livina, Hyundai Santa Fe, and Toyota Altis.
New Car Sales in Taiwan (2007) |
December | 2007 |
Make (Manufacturer) | Volume | Share | YoY | Make (Manufacturer) | Volume | Share | YoY |
Toyota (Hotai) | 10,157 | 37.1% | -7.7% | Toyota (Hotai) | 104,843 | 32.1% | -2.4% |
Nissan (Yulon Nissan) | 3,077 | 11.2% | -16.0% | Mitsubishi (CMC) | 46,765 | 14.3% | -16.3% |
Mitsubishi (CMC) | 2,685 | 9.8% | -2.3% | Nissan (Yulon Nissan) | 35,791 | 11.0% | -10.8% |
Honda (Honda Taiwan) | 2,671 | 9.7% | 8.3% | Honda (Honda Taiwan) | 28,356 | 8.7% | 29.1% |
Ford (Ford Lio Ho) | 1,945 | 7.1% | 15.3% | Ford (Ford Lio Ho) | 24,898 | 7.6% | -17.6% |
Mazda (Mazda Taiwan) | 1,142 | 4.2% | -15.1% | Mazda (Mazda Taiwan) | 17,464 | 5.3% | -27.7% |
Suzuki (Prince Motor) | 969 | 3.5% | -34.8% | Suzuki (Prince Motor) | 14,431 | 4.4% | -20.6% |
Hyundai (Sanyang Industries) | 673 | 2.5% | -49.4% | Hyundai (Sanyang Industries) | 9,366 | 2.9% | -43.6% |
Others (including trucks, buses) | 4,092 | 14.9% | -- | Others (including trucks, buses) | 44,872 | 13.7% | -- |
Overall | 27,411 | 100% | -11.0% | Overall | 326,777 | 100% | -10.8% |
Source: MOTC. |
(by Quincy Liang)
