Taipei, Dec. 1, 2011 (CENS)--The Taiwan-headquartered auto-parts conglomerate Tong Yang's operation in China is expected to grow more than the overall new-car sales growth in China (about 10%) in 2012, according to Crispin Wu, new president of Tong Yang.
Wu said that in 2013 Tong Yang's operation in China will undergo a new wave of high growth, driven by the merger between Tong Yang Industrial Co., Ltd. and former affiliate Taiwan Kai Yih Industrial Co., Ltd., resulting in ample investment in capacity expansion and production-line adjustment.
Established in 1952, Tong Yang is the largest auto-parts manufacturer in Taiwan supplying automotive plastic, sheet metal and cooling products, plastic motorcycle products, and molds and paints.
Wu stressed that the greatest sales growth in aftermarket (AM) auto parts will come from emerging markets, especially from China. So Tong yang has chosen one of its Chinese subsidiaries in Nanjing to kick off AM-parts manufacturing.
In the first 10 months of 2011, Wu said, sales of new cars in China grew only 5% from the same period of the previous year, compared to Tong Yang's 6.4% year-on-year (YoY) growth in its Chinese operation. Believing that new-car sales in China will recover to above-10% growth in 2012, Wu said that Tong Yang's revenue growth next year will still be relatively higher.
Poor economic performance in Europe and the U.S. have impacted AM parts sales in such regions, but high growth in China is expected to offset the damage, said Wu.
Taking over Tong Yang as president from his elder brother Raymond on October 1, Wu announced the "1560" goal immediately—to achieve NT$60 billion (US$2 billion) in revenue by 2015 (compared to NT$32.4 billion or US$1.08 billion in 2010). Without upsetting events after the second quarter of 2012, Wu said, Tong Yang still can achieve such ambitious goal despite the tepid global economy.
