Taiwan's Transportation Vehicle & Parts Production Value Up in 2012
2013/05/16 | By Quincy LiangPenetration of e-scooters in Taiwan still low due to relatively weak performance
Seemingly defying the globally uncertain economy, Taiwan's production value of transportation vehicles and parts, including assembled automobiles, auto parts, powered two-wheelers (PTWs) and electric vehicles, including locally-produced Toyota Camry hybrids and electric scooters, which grew 1.4% quarter-on-quarter (QoQ) and 0.6% year-on-year (YoY) in the fourth quarter of 2012 to NT$109.67 billion (US$3.66 billion), according to the IEK Industrial Economics & Knowledge Center (IEK)-ITIS (Industry & Technology Intelligence Services) in Taiwan.
The IEK-ITIS explains that sales of new cars in Taiwan rose slightly QoQ due to automakers launching new models; while exports of Taiwan-made auto parts also enjoyed value increase due to the peak-season effects. Sales of new PTWs often drop QoO in the fourth quarter; while local production volume of EVs also saw QoQ decline.
Value of Transportation Vehicle Production in Taiwan | ||||||||||
| Q112 | Q212 | Q311 | Q412(e) | QoQ | YoY | Q113 | 2010 | 2011 | 2012(e) |
Assembled | NT$44.9 B. | NT$47.2 B. | NT$45.8 B. | NT$46.2 B. | 0.9% | -8.3% | NT | NT | NT | NT$184.0 B. |
Auto Parts | NT$48.9 B. | NT$47.1 B. | NT$49.4 B. | NT$52.8 B. | 6.9% | 8.4% | NT | NT | NT | NT$198.2 B. |
PTWs | NT$10.5 B. | NT$11.7 B. | NT$13.0 B. | NT$10.7 B. | -17.8% | 7.8% | NT | NT | NT | NT$45.9 B. |
EV | NT$2.1 B. | NT$3.4 B. | NT$3.3 B. | NT$2.1 B. | -35.4% | 1,195% | NT | NT
| NT
| NT$10.9 B. |
Total | NT$104.3 B. | NT$106.0 B. | NT$108.2 B. | NT$109.7 B. | 1.4% | 0.6% | NT | NT | NT | NT$428.2 B. |
Source: IEK-ITIS, Feb. 2013. | ||||||||||
Assembled Vehicles
The production value of assembled automobiles climbed 0.9% from the previous quarter but declined 8.3% year-on-year to NT$46.2 billion (US$1.54 billion), thanks to overall economic factors and rising fuel prices hampering purchase willingness. Though some major automakers increased assembled-vehicle exports through foreign technical partners' sales channels, such as Kuozui Motors Ltd. (Toyota), China Motor Corp. (Mitsubishi) and Yulon Motor Co. (Nissan), the overall production still dropped about 8.3% from the previous year.
Auto Parts
Thanks to peak-season factors, as well as smooth exports to major markets as China, North America, Europe, and Association of Southeast Asian Nations (ASEAN), many listed auto-parts makers scored record quarterly revenues in the fourth quarter of 2012. In the fourth quarter, Taiwan's auto-parts production totaled NT$52.77 billion (US$1.76 billion), up 6.9% QoQ and 8.44% YoY.
PTWs
Sales of new PTWs in Taiwan went down in the fourth quarter due to the winter off-season, though some makers utilized the period to produce mainly models for exports. PTW production during the period totaled NT$10.7 billion (US$356.7 million), down 17.8% QoQ, but up 7.8% YoY.
EVs
The locally produced Toyota Camry hybrids has been the most popular hybrid on the island since its demonstration, and more than 50% of Camry buyers opt for the dual-fuel model. In the fourth quarter, monthly shipments of Camry hybrids remained 650 to 700 units, with 10,396 Camry hybrids delivered in 2012. E-scooter production value in the fourth quarter is estimated to be NT$214 million (US$7.1 million).
Targeting China and Russia
The Yulon Group, the largest carmaker in Taiwan, has been aggressively producing and marketing its LUXGEN line in Taiwan and China. Commenting on the lower-than-expected sales volume in 2012, Yulon Group president Chen Kuo-rong said that the carmaker is targeting developing both the big markets in China and Russia.
Currently, monthly sales volume of LUXGENs in China (locally produced and sold by Dongfeng Yulon Motor Co., Ltd.) is about 1,000 units. However, Yulon's board has resolved to pour additional NT$960 million (US$32 million) to further develop sales channels and marketing. In addition, the group plans to achieve annual sales goal of 500,000 units in China by 2018, when it will have pushed eight to nine models, as well as simultaneously exploring new markets as Russia, the Middle East, and Vietnam.
Auto-electronics Maker Wins OE Orders
Tung Thih Electronic Co., Ltd. (TTE), a major OE automotive-electronic system and parts supplier to global automakers, recently announced having won many orders from global customers over the next three years, including Renault Group, Changan Ford, and Daimler Group etc.
From 2013, TTE will supply each of the new customers with 200,000 sets of parking sensors per year, helping to raise revenue by at least 30%.
Currently, TTE is Asia's largest and world's No. 3 supplier of parking sensors, operating one factory in Taiwan and two in China (Xiamen, Fujian Province and Kunshan, Jiangsu Province). On the new-generation "smart" mini-car models jointly developed by Renault and Daimler, TTE will supply the parking sensors. Industry sources said that TTE has successfully tapped into Daimler Group's supply chain, and is expected to win more orders from other global vehicle makers.
The company has also achieved major technical success, having developed the core sensing devices used in parking sensors, and contracted a German IC design company to develop its dedicated chips for vertical integration, which, according to TTE, can cut costs and boost profit margins by at least 20%, which sufficiently covers the rising labor costs in China.
Kuozui Becomes Major Overseas Production Base for Toyota
Kuozui Motors Ltd., a joint venture between Japanese automaker Toyota and Taiwan's Hotai Motor Co. Ltd., agent of Toyota and Lexus, became the first auto factory in Taiwan with annual production volume outstripping 170,000 units in 2012.
Kuozui exported about 67,000 locally assembled Toyota Altis sedans to the Middle East in 2012, up more than 30% from the previous year, compared to only about 7,000 units in 2009. Industry sources said that the increasing export by Kuozui implies the auto assembler's quality and cost level have achieved international standard.
The carmaker is expected to gradually expand production, and achieve an annual production goal of 200,000 units by 2014.
Three More e-Scooters Certified
In the fourth quarter of 2012, three new e-scooter models from three local makers were TES (Taiwan E-Scooter Standard) certified and qualified for subsidies of either NT$8,000 (small/light e-scooter) or NT$11,000 (light model) for each sold in Taiwan. As of the end of 2012, there were 24 e-scooter models from 10 companies (E-Ton Power Tech Co., Ltd., Kwang Yang Motor Co., Ltd. (KYMCO), China Motor Corp. (CMC), Sanyang Industry Co., Ltd. (SYM), EVT Technology Co., Ltd., Kentfa Advanced Technology Corp., DK City Corp., Yamaha Taiwan Motor Co., TCV Industrial Co., Ltd., and Green Diamond Power Inc.)
Though the domestic PTW market has maintained an annual volume of 600,000 to 800,000 units in Taiwan in recent years, the penetration of e-scooters has been disappointing, to which the industry attributes lackluster horsepower compared to internal combustion engine (ICE) counterparts, as well as very limited e-scooter models available.
IEK-ITIS points out that in conjunction with an increasing number of e-scooter makers jumping onto the bandwagon, consumers will have more choices and the overall market is expected to further expand. The increasingly fierce competition between players is also expected to accelerate technical and product advancement, which will help bolster the local e-scooter industry.
Prospects
According to the IEK-ITIS, in 2013 the domestic automobile market is forecast to shrink slightly due mainly to high fuel prices. But the gradually recovering global economy will more or less drive consumers' purchase willingness. The 2013 assembled-vehicle production value in Taiwan is forecast to be NT$187.2 billion (US$6.24 billion), up 1.7% from 2012.
Several positive factors are expected to drive Taiwan's auto-parts production value by 8.7% in 2013 to NT$215.5 billion (US$7.18 billion), including recovering global economy, increased new-car sales in Europe, the U.S. and Japan, more orders to Taiwanese supplier due to waning anti-Japan sentiment in China, and the Economic Cooperation Framework Agreement (ECFA) signed between China and Taiwan has cut duties on many mutually traded auto parts.
Some 630,000 to 650,000 new PTWs are expected to be sold in Taiwan in 2013, and PTW exports from the island expected to gradually recover in conjunction with the improving economy in Europe. In 2013, Taiwan's PTW production value is forecast to rise 11% to reach NT$51 billion (US$1.7 billion).
Hybrid cars are becoming more popular around the world, including in Taiwan, while an increasing number of companies are joining the industry. In 2013, EV (including e-scooter) production value on the island is forecast to rise 6% to reach NT$18.6 billion (US$620 million).