Taiwan's Auto Production Value Estimated to Drop 2.47% in 2008

Taipei, Aug. 22, 2008 (CENS)--The production value of Taiwan's automotive industry is expected to reach NT$303.9 billion (US$9.96 billion at US$1: NT$30.5) this year, a 2.47% decrease from 2007, according to Industry & Technology Intelligence Services project executed by Industrial Economics & Knowledge Center (IEK-ITIS).

Statistics compiled by IEK-ITIS showed that local automotive production value in the second quarter was NT$70.74 billion (US$2.32 billion), including NT$28.75 billion (US$942.62 million) from assembled vehicles, down 20.59% from a year earlier.

Due to positive factors such as high gas and material prices, weak consumer confidence etc., IEK-ITIS forecasted that this year's assembled-vehicle production value in Taiwan would be about NT$129.82 billion (US$4.26 billion), down 8.28% from 2007. Among all product categories, the small passenger car (with engine displacement under 2,000cc) and light tuck (under 3.5-ton) are expected to suffer the most stiff decrease ratio of 24.66% and 33.26%, respectively. While the production value of big passenger car (over 2,000ccc), thanks to a relative-low comparison base, is expected to grow 57.61% this year.

Production value of auto parts in the second quarter was NT$41.99 billion (US$1.38 billion), down 2.13% from a year earlier, and in 2008 is forecasted to reach NT$174.08 billion (US$5.71 billion), up 2.37%. Engine and parts as categories enjoyed a 4.07% annual growth, with electrical parts growing 2.37%. Bus body parts declined the most at 24.23%.

IEK-ITIS pointed out that new-car sales in Taiwan continued to plunge in the second quarter due to highflying gas prices, which weakened domestic demand for original equipment (OE) auto parts. The exports of aftermarket (AM) replacement parts, especially to North America, however, performed well due to the slowdown and sub-prime financial crisis in the U.S. that compromised new-car purchases and lengthened ownership.

The AM auto-parts makers, who have already established quality image and sales channels, have seen fully-booked production lines, especially suppliers of stamped body parts, bumpers, auto lamps, ignition coils etc.

Taiwan's Automotive Production Value (2003-2008) Unit: NT$1 million
Year	2003	2004	2005	2006	2007	1Q 2008	2Q 2008	3Q 2008 (e)	2008(e)	2008/2007
Assembled Vehicle	191,794	214,296	225,315	154,177	141,535	31,295	28,750	35,292	129,816	-8.28%
Parts	149,069	177,515	184,878	166,182	170,042	40,119	41,987	44,664	174,080	2.37%
Total	340,863	391,811	410,193	320,359	311,577	71,414	70,737	79,956	303,896	-2.47%
Source: IEK-ITIS, August 2008.