Taiwan's Auto Parts Industry to Cash In on High Season

Sep 13, 2017 Ι Industry News Ι Auto Parts and Accessories Ι By Alan Lu, CENS
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Mainly on seasonal booms, plus with other positive factors, including surging demand for new cars and replacement parts amid hurricane recovery in Texas and Florida in the U.S., Taiwan's auto parts suppliers are generally expected to chalk up significant revenue growths in the remainder of this year.

Among them, Bizlink, a leading global interconnect solution provider, has posted increasingly robust performance since carrying out M&A (mergers and acquisitions) with LEONI EA, a global supplier of wires, cables and wiring systems, earlier this year. Market observers pointed out that whether the company's current growth momentum will continue into next year will hinge largely on if Tesla can roll out its Model 3 as smoothly as expected.

Thanks to Chinese carmakers continuously launching new car models, as well as its new production lines and logistics centers continually becoming operational, Tong Yang, a Taiwan-based multinational auto parts manufacturer, scored August revenue of NT$2.046 billion for a 4.8 percent year-on-year growth as an all-time high for the month, and expects to finish the second half of this year with better performance compared to that for the first half.

Chian-Hsing Forging, which provides advanced automatic pressing technologies and combined forging services, raked in NT$250 million for revenue in August, sharply surging by 48.3 percent year on year, or 5.9 percent month on month, as a single-month high in history. Due to big orders received from Dongfeng Honda, an automobile manufacturing company headquartered in Wuhan, China, the Taiwanese company is expected to remain in fine shape in the third quarter and end the half of this year with encouraging performance.

After logging the highest single-month revenue of NT$570 million in August, Hota, a Taiwanese business partner for Tesla and a professional auto parts manufacturer, is also likely to break its record in Q3 revenue. Just like Bizlink, the firm's revenue growth for the remainder of this year will rest with Tesla's mass production of Model 3.

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