AAPEX 2023 Post-Show Report

Intro

On November 2, 2023, the three-day Automotive Aftermarket Products Expo (AAPEX) for this year concluded. Over the past three years, navigating the challenges posed by the pandemic and the subsequent partial recovery last year, this year's event stood out with an impressive assembly of approximately 2,500 exhibitors hailing from 48 different countries, occupying a staggering 5,200 booths. The first day of the exhibition saw a substantial influx of buyers, primarily from the Americas, filling the 1st and 2nd floors of the exhibition hall. It is evident that the overall enthusiasm for the exhibition has rebounded to pre-pandemic levels.

Chan Chih Yuan, the export trade promotion coordinator of the Importers & Exporters Association of Taipei (IEAT), highlighted that all fourteen members who exhibited at AAPEX 2023 unanimously recognized the exhibition's effectiveness and eagerly expressed their intent to participate in the show again next year. Additionally, TASDA also held the event in high regard this year and wholeheartedly expressed their willingness to recommend it to other members for the following year.

Sung Wen Pin, the coordinator of the Taiwan Transportation Vehicle Manufacturers Association (TTVMA), was responsible for assisting exhibitors at the AAPEX show before the pandemic hit. He observed that last year, due to the pandemic, there were fewer Chinese exhibitors in attendance. However, this year presented a stark contrast as they occupied the majority of the space on the first floor of the exhibition hall. It's evident that in the 2023 AAPEX, both the scale of exhibitors and the number of buyers have nearly returned to pre-epidemic levels. Nevertheless, it's inevitable that Taiwan and China suppliers will engage in close competition, focusing on quality and price.

Show Info

As one of the world's top three automotive aftermarket exhibitions, AAPEX serves as a significant platform for showcasing new products and cutting-edge technologies each year. The exhibits for this year encompass over 1,000 items, ranging from various auto parts, air-conditioning system components, and car audio to security fittings, electronic elements, storage batteries, safety belts, motor brake clutches, body parts, cooling system components, chassis parts, suspension systems, transmission system parts, steering system parts, and transmission components. Building on this momentum, the 2023 AAPEX introduces a new feature - the Electric Vehicle Experience - aimed at providing attendees with insights into the evolving vehicle fleet landscape and the potential aftermarket business opportunities it brings.

With a long-standing presence in the automotive aftermarket industry, Taiwan showcases its prominence at this year's show with more than 230 exhibitors, securing its position as the third-largest participating country, surpassed only by the U.S. and China. Collaborating with Economic Daily News/CENS, various industry associations, including the Importers & Exporters Association of Taipei (IEAT), Taiwan Transportation Vehicle Manufacturers Association (TTVMA), Changhua County Industrial Association (CHCIA), Taiwan Forging Association, KABA, Kaohsiung Automobile Dealers Association, and Taiwan Auto/Motorcycle Parts R&D Alliance, have come together to establish a vibrant Taiwan Pavilion. This collective effort consists of 92 manufacturers spanning 117 booths, more than doubling the exhibitor count from the previous year, making it the largest exhibition group representing Taiwan.

Market News

Within the multitude of countries that Taiwan manufacturers cater to, the United States stands out as the pivotal market, accounting for approximately 56% of Taiwan's industry export value. Among the diverse export items, body & stamping parts, auto lamps, tires, wheel rims, and mirrors emerge as the major contributors.

This predominance is underpinned by the fact that over 90% of cars in the U.S. are encompassed by insurance coverage, thereby leading to insurance companies bearing a significant proportion of maintenance expenses. In times past, customers typically gravitated towards original parts for maintenance, with a mere 14% opting for AM components. However, recent times have witnessed a paradigm shift. Insurance companies have initiated policies introducing more cost-effective AM parts which have to be certified by the Certified Automotive Parts Association (CAPA). A watershed moment occurred in December 2022 when State Farm, the largest insurer in the U.S., spearheaded the movement toward employing AM parts for maintenance, indicating the foreseeable and continued growth of Taiwan's auto parts manufacturing industry within the U.S. market.

Notable Exhibitors

In this year's edition, the Economic Daily News/CENS has meticulously curated a distinguished lineup of 103 high-caliber suppliers. Among these notable exhibitors stands out Cub Elecparts Inc. (J9942 - UDN), a leading expert in advanced driver-assistance systems (ADAS). Further enhancing the lineup is Jeesoon Terminals Co., Ltd. (J9950 - UDN), a prominent manufacturer and supplier specializing in terminals, along with Habashi Taiwan Trading Co., Ltd. (J9842 - UDN), a provider of stable, reliable, and safe auto lamps and spare parts.

Also featured is Scan Top Enterprise Co., Ltd. (A30021 - UDN), renowned for over three decades of expertise in the production of windshield wiper blades. Additionally, the assembly introduces Hwang Yu Automobile Parts Co., Ltd. (J9946 - UDN), a certified IATF 16949 and ISO 14001 company with over 50 years of experience in manufacturing high-quality aftermarket automotive steering, suspension, and brake components. The array of participants also includes HuShan Auto Parts Inc. (J10146 - UDN), recognized as the world's largest aftermarket door handle manufacturer, UN Fuel Tank Manufacture Co. (J10042 - UDN), the oldest fuel tank manufacturer in Taiwan, and CTG Tools International Co., Ltd. (J10047 - UDN), a specialty enterprise offering professional hand tools, air tools, power tools, and more.

Hsun Wang Industrial Co., Ltd.

Under the leadership of Chairman Li Yu Hsin and General Manager Hsiao Li Sha, Hsun Wang Industrial Co., Ltd., located on the 2nd floor of the exhibition hall, is presenting their range of products including the quick change ratchet crimper, fixed ratchet crimper, crimping tools, and related accessories. Hsiao emphasized that Hsun Wang stands as the sole manufacturer of crimping tools capable of supplying a comprehensive range of products for automobiles, aerospace, agriculture, ships, machinery, and various other industries.

Hsiao further highlighted that, owing to the stringent safety demands, Hsun Wang has been actively engaged in designing and collaborating with German companies to pioneer new, state-of-the-art crimping tools while staunchly maintaining their commitment to "Made in Taiwan." Additionally, their products can be fitted with 100 types of replaceable crimp tools, positioning the company at the forefront of the industry in terms of functionality, convenience, and safety.

Guan Yu Industrial Co., Ltd.

With a specialization in forging, Guan Yu Industrial Co., Ltd. is showcasing a variety of products, including automobile gears, motorcycle gears, and slide blocks, during this exhibition. The Chairman's assistant, Chen Hung Kai, explained that Guan Yu has embraced the precision forging process to improve manufacturing precision in terms of shape, dimensional tolerances, and surface machining. This innovative technique is applicable to objects weighing between 150 grams and 15 kilograms, eliminating the need for further machining operations and resulting in cost savings and reduced processing costs.

During the 2023 edition of AAPEX, Guan Yu noted a significantly high number of inquiries from buyers visiting their booth, surpassing the company's initial expectations. This positive response has prompted Guan Yu's enthusiasm to participate in the exhibition again next year.

Singform Enterprise Co., Ltd.

Singform Enterprise Co., Ltd. stands as a prominent Tier 1 manufacturer globally, specializing in car floor mats and commercial floor mats (OEM/ODM). North America has consistently been a crucial market for Singform, with the company actively participating in the AAPEX show for 26 years.

General Manager Chen Shih Wu mentioned that in light of the trade tensions between China and the U.S. in recent years, Singform has adjusted its business and marketing strategies. To better connect with the market and comprehend demands, the company established a factory in Detroit, USA. Presently, their products have undergone upgrades, utilizing recyclable materials to meet non-toxic and environmental standards. These enhancements have enabled successful entries into major car manufacturers such as GM, Ford, Chrysler, and others.

Furthermore, Singform's carbon fiber composite material, utilized in their high-quality automobile pedal pads, offers wear resistance, easy maintenance, lightweight characteristics, and a stylish appearance. These products are suitable for a wide range of car models and can be customized to meet specific customer requirements. The remarkable blend of these features captivated the attention of numerous buyers who visited the exhibition, sparking considerable interest and engaging inquiries with the company.

Donzee Enterprise Ltd.

Founded in 2003, Donzee Enterprise Ltd. is an ISO 9001:2015 certified manufacturer based in Taiwan, specializing in the research and development of cleaning and fragrance products.

While introducing the product, Sales Manager Chen Ting Chen highlighted that the company has adopted a lemon oil formula. This formula effectively loosens grease, which is then wiped away using a non-woven cloth as a carrier, employing the concept of "exchanging oil for oil" to clean stains without causing harm to the skin.

Additionally, Donzee presented their water-soluble polishing paste, demonstrated on-site, capable of treating various metal surfaces, offering great convenience for cleaning wheel rims, exhaust pipes, and other similar components.

Numerous American buyers have shown keen interest in the products, resulting in a positive response for Donzee. Currently, the company is assessing participation in next year's National Hardware Show (NHS) as part of its strategy to bolster its presence and expansion in the North American market.

CENS Showcases Industry Expertise and Publications at AAPEX 2023

CENS maintains a booth (J9756 - UDN) at the venue, facilitating the distribution of AAPEX 2023 Show Express and professional trade magazines, including the latest edition of the Taiwan Transportation Equipment Guide (TTG) and Taiwan Hand Tools along with a portable USB version. These publications not only provide insights into industry trends and highlights from prominent exhibitions but also feature well-recognized Taiwanese suppliers and their high-quality products. Additionally, real-time business matchmaking services are available during the exhibition, enabling professional buyers to connect with suitable Taiwanese suppliers, even those not physically present at the fair. These thoughtful services have garnered high praise from the attending buyers.

Buyer Analysis

According to the information collected on-site by CENS, the largest number of buyers came from the U.S., followed by Central and South America, including Mexico, Ecuador, Chile, Colombia, Puerto Rico, and Guatemala, as well as buyers from Canada, Spain, Sweden, Turkey, Germany, New Zealand, India, Thailand, and mainland China. From the analysis of buyers' sources, AAPEX has once again confirmed its position as the largest and most professional auto parts trade show in the Americas.

The Nationalities of Buyers:

1. North America: 53.79%

2. Central and South America: 28.16%

3. Europe (except Eastern Europe): 5.42%

Top 5 Buyer Profiles by Business Type:

1. Importer: 28.71%

2. Distributor: 22.01%

3. Wholesaler: 15.79%

4. Dealer: 12.92%

5. Manufacturer: 12.44%

Buyer Profile by Product Demand:

1. Auto parts: 23.4%

2. Bus, Truck, Heavy-duty Parts & Accessories: 17.3%

3. Vehicle repair/maintenance tools & equipment: 11.9%

4. Tool storage & accessories: 11.5%

5. Head lamps: 7.5%