Taiwanese Auto-Parts Makers Actively Expand Overseas Markets
2008/01/14 | By Quincy LiangTaipei, Jan. 14, 2008 (CENS)--Some major auto-parts makers in Taiwan are actively expanding operations into overseas markets to counter their decreasing sales on the island due to shrinking domestic new-car sales.
Jui Li Enterprise Co. Ltd., which sells sheet-metal body parts to both original equipment (OE) and aftermarket (AM) customers, plans to upgrade its investment in mainland China in 2008 by setting up a new stamping plant and a joint venture with Hainan Mazda in Kaifeng of Henan Province to supply parts to Hainan Mazda's scheduled auto plant with an annual capacity of 300,000 mini cars. Jui Li said that the new sheet-metal parts plant in Kaifeng is scheduled to begin mass production in the third quarter of 2008.
New-car sales in Taiwan have plunged for two straight years to less than 330,000 units in 2007, a new low in 20 years. This made all OE auto-parts suppliers on the island suffer sharp sales decreases, and there are still no clear signs showing a market turnaround in 2008.
Jui Li claimed that it would aggressively develop its business in mainland China in 2008 by more closely tying up with Hainan Mazda. The Taiwan-based auto-parts maker would pour NT$100 million (US$3.08 million at US$1: NT$32.5) through its mainland China-based subsidiary to set up the scheduled stamping plant in Kaifeng, which will have a monthly capacity of 5,000 car/sets.
In addition, Jui Li's new tooling plant in Wuhan, Hubei Province would become operational by the end of 2008.
Ta Yih Industrial Co., the largest OE auto-lamp supplier in Taiwan with an 80% share of domestic market, said that its OE-lamp sales account for over 80% of its overall revenue and if new-car sales in Taiwan continue to fall in 2008 the firm would be forced to upgrade contract-production volume for Japanese customers.
Since November 2007, Ta Yih has started designing auto-lamps for a Japanese car model and will continue to supply different original equipment supplied (OES) auto lamps for several older Japanese car models.