Tong Yang Eyes Vast Potential in Chinese Automotive Aftermarket

Taipei, April 16, 2009 (CENS)--When passenger cars become more common in rural areas in mainland China, auto-parts makers will see rapid growth, according to Raymond Wu, president of the Tong Yang Group, one of the largest auto-parts conglomerates in Taiwan.

Interviewed by the Chinese-language daily Economic Daily News (EDN), Wu pointed out that China's program to subsidize home appliance and car purchases in rural areas to stimulate local demand and narrow the rural-urban living standards gap would generate long-term and deep influences. The first wave would lead to rising demand for light trucks and mini commercial vehicles, and then passenger cars in the second wave.

Tong Yang began developing its business deployments in mainland China in 1994 and to date has set up 16 production bases in China, turning out plastic parts and materials, sheet-metal body parts, coating materials, and air-condition evaporators. The group has set up partnerships with all the top-10 auto makers in China.

The president stressed that the official Chinese program to eagerly promote economic development in rural areas, backed by considerable investment and manpower, would achieve results very soon.

Tong Yang is eyeing the strong potential in the Chinese automotive aftermarket, Wu said, believing it would generate more business opportunities.

In 2008, Wu said, Tong Yang set up an aftermarket auto-parts production base in Nanjing, Jiangsu Province of China as the group's first step to tap the potential market in China. The group has prepared more than 100 sets of molds and dies for the Chinese market.