Taiwan Auto Exports Gain Horsepower
Oct 06, 2003 Ι Industry In-Focus
Ι Auto Parts and Accessories Ι By Quincy, CENS
Most of Taiwan's major automakers saw clear growth in their exports of auto parts and complete cars in the first eight months, putting the industry on track to cross the US$1 billion mark in export value this year.
The four biggest exporters in Taiwan's automobile industry in the first half of the year were, in descending order, China Motor Corp. (partner of Mitsubishi of Japan), Yulon Motor Co. (Nissan of Japan), Kuozui Motors Ltd. (Toyota of Japan) and Ford Lio Ho Motor Co. (Ford of the U.S. and Mazda of Japan).
All four companies have increased their exports of auto parts to affiliated automakers in Southeast Asia. Many of these parts are used in models that have been re-designed by Taiwan automakers.
Some local carmakers have also begun exporting complete cars and commercial/recreational van models to neighboring nations under commission of their partners, further elevating their export values.
Revving Up in Asia
Buoyed by strong demand from its mainland Chinese subsidiary Southeast Motor Corp., China Motor recently reported that it reached its annual auto parts export goal of NT$8.5 billion (US$249.27 million at US$1:NT$34.1) in August. The company predicts that the figure could challenge NT$12 billion (US$351.9 million) this year and rise to over NT$20 billion (US$586.51 million) next year, as its mainland subsidiary will begin production of two new automobile models, including the Savrin wagon and Veryca mini commercial van, next year.
China Motor exported about US$276 million worth of auto parts and complete cars in the first half this year, up 115.23% from the same period last year.
Southeast is a 50:50 joint venture between China Motor and a Fujian Province-run automaker. The company produces several automobile models redesigned by the China Motor Asia Research & Technology Center (CARTEC) in Taiwan from original versions provided by Mitsubishi, including the most recent Lioncel sedan (Lancer in Taiwan), Delica and Freeca commercial vehicles (pickup and van models), and the Verica mini van (fully-developed by China Motor). Southeast has quickly become one of the top-10 commercial vehicle brands in mainland China.
Kuozui reported that it exported about US$87.77 million worth of auto parts to Toyota's overseas plants in the first half this year, up 46.32%. The company estimates that the annual figure will reach at least US$140 million, nearly doubling last year's US$80 million or so.
A senior Kuozui official attributes the increasing auto parts export value to the introduction of two new models, the Corolla Altis subcompact and Camry medium sedan, redesigned by Kuozui Development Center (KDC) in Taiwan. The new models have been selling well in several neighboring markets, including Thailand, the Philippines, Malaysia, Indonesia and Vietnam, as well as in Australia and the United States. Kuozui currently supplies exterior sheet-metal body parts and interior accessories to Toyota facilities in other countries.
In addition, Kuozui has begun shipping some auto parts for the Vios 1.3/1.5L sedan to the affiliated Tianjin Toyota Motor Co., a joint venture between Toyota and Tianjin Automobile Xiali Corp. in mainland China. It also expects to export parts for the Altis to the mainland affiliate at the end of the year.
Yulon, the flagship firm of the Yulon Group and China Motor's affiliate, exported over US$1231.32 million worth of auto parts and the Taiwan-made Serena recreational vans to Nissan's overseas plants in the Asia-Pacific region in the first half.
Han Cheng-pin, Yulon vice president, expects the export value to jump higher as his company will begin exporting parts for the Sentra CE sedan and X-Trail sport utility vehicle (SUV) models to mainland China and other Asian nations in the second half.
Industry sources say that though the value of Yulon's parts exports to Nissan's overseas car plants are not that substantial, the Taiwan company has succeeded in becoming an important contract supplier to many first-tier original equipment (OE) parts suppliers in Nissan's supply chain in Asia. Yulon's parts exports to those first-tier suppliers were threefold to fourfold that of its parts shipments to Nissan's overseas plants, the sources add.
Ford Lio Ho says that it exported about NT$700 million (US$20.53 million) worth of parts and complete cars last year. The figure is expected to reach about NT$1.3 billion (US$38.12 million) this year.
Ford Lio Ho claims that its affiliate Ford China will procure a total of 3,000 Taiwan-made automobiles, including Mondeo Metrostar sedans and Escape SUVs, this year. The company also won orders from affiliates in Vietnam, Malaysia and Thailand to supply sheet-metal body parts for the Taiwan-redesigned Tierra sedan.
Ford Lio Ho claims that if mainland China's central government accelerates the inspection speed for its application to import Escape SUVs from Taiwan, its annual export value is expected to jump higher this year.
Caption: Yulon exports Taiwan-made Serena RVs to the Philippines.
Table:
Source: Taiwan Transportation Vehicle Manufacturers' Association(TTVMA)
The four biggest exporters in Taiwan's automobile industry in the first half of the year were, in descending order, China Motor Corp. (partner of Mitsubishi of Japan), Yulon Motor Co. (Nissan of Japan), Kuozui Motors Ltd. (Toyota of Japan) and Ford Lio Ho Motor Co. (Ford of the U.S. and Mazda of Japan).
All four companies have increased their exports of auto parts to affiliated automakers in Southeast Asia. Many of these parts are used in models that have been re-designed by Taiwan automakers.
Some local carmakers have also begun exporting complete cars and commercial/recreational van models to neighboring nations under commission of their partners, further elevating their export values.
Revving Up in Asia
Buoyed by strong demand from its mainland Chinese subsidiary Southeast Motor Corp., China Motor recently reported that it reached its annual auto parts export goal of NT$8.5 billion (US$249.27 million at US$1:NT$34.1) in August. The company predicts that the figure could challenge NT$12 billion (US$351.9 million) this year and rise to over NT$20 billion (US$586.51 million) next year, as its mainland subsidiary will begin production of two new automobile models, including the Savrin wagon and Veryca mini commercial van, next year.
China Motor exported about US$276 million worth of auto parts and complete cars in the first half this year, up 115.23% from the same period last year.
Yulon exports Taiwan-made Serena RVs to the Philippines.
Kuozui reported that it exported about US$87.77 million worth of auto parts to Toyota's overseas plants in the first half this year, up 46.32%. The company estimates that the annual figure will reach at least US$140 million, nearly doubling last year's US$80 million or so.
A senior Kuozui official attributes the increasing auto parts export value to the introduction of two new models, the Corolla Altis subcompact and Camry medium sedan, redesigned by Kuozui Development Center (KDC) in Taiwan. The new models have been selling well in several neighboring markets, including Thailand, the Philippines, Malaysia, Indonesia and Vietnam, as well as in Australia and the United States. Kuozui currently supplies exterior sheet-metal body parts and interior accessories to Toyota facilities in other countries.
In addition, Kuozui has begun shipping some auto parts for the Vios 1.3/1.5L sedan to the affiliated Tianjin Toyota Motor Co., a joint venture between Toyota and Tianjin Automobile Xiali Corp. in mainland China. It also expects to export parts for the Altis to the mainland affiliate at the end of the year.
Yulon, the flagship firm of the Yulon Group and China Motor's affiliate, exported over US$1231.32 million worth of auto parts and the Taiwan-made Serena recreational vans to Nissan's overseas plants in the Asia-Pacific region in the first half.
Han Cheng-pin, Yulon vice president, expects the export value to jump higher as his company will begin exporting parts for the Sentra CE sedan and X-Trail sport utility vehicle (SUV) models to mainland China and other Asian nations in the second half.
Industry sources say that though the value of Yulon's parts exports to Nissan's overseas car plants are not that substantial, the Taiwan company has succeeded in becoming an important contract supplier to many first-tier original equipment (OE) parts suppliers in Nissan's supply chain in Asia. Yulon's parts exports to those first-tier suppliers were threefold to fourfold that of its parts shipments to Nissan's overseas plants, the sources add.
Ford Lio Ho says that it exported about NT$700 million (US$20.53 million) worth of parts and complete cars last year. The figure is expected to reach about NT$1.3 billion (US$38.12 million) this year.
Ford Lio Ho claims that its affiliate Ford China will procure a total of 3,000 Taiwan-made automobiles, including Mondeo Metrostar sedans and Escape SUVs, this year. The company also won orders from affiliates in Vietnam, Malaysia and Thailand to supply sheet-metal body parts for the Taiwan-redesigned Tierra sedan.
Ford Lio Ho claims that if mainland China's central government accelerates the inspection speed for its application to import Escape SUVs from Taiwan, its annual export value is expected to jump higher this year.
Caption: Yulon exports Taiwan-made Serena RVs to the Philippines.
Table:
Unit: US$1 million | |||
| China Motor (Mitsubishi) | |||
| Yulon (Nissan) | |||
| Kuozui (Toyota) | |||
| Ford Lio Ho (Ford) | |||
| Total | |||
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