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Taipei AMPA 2009 Officially Recognized as Professional Platform

2009/10/05 | By Steve Shen

While the recession continues to batter the American and global automakers as never before since WWII, the latest Taipei AMPA boasts figures that seem hopeful. Held in conjunction with AutoTronics Taipei 2009 from April 14 to 17 under the same roof of the TWTC (Taipei World Trade Center) Nangang Exhibition Hall, Taipei AMPA attracted around one thousand exhibitors, who, including 100 from 15 countries as the U.S., Japan, Germany, Italy, India, the Philippines, South Korea, China and Thailand, occupied over 2,600 booths, according to TAITRA (Taiwan External Trade Development Council), the show organizer.

TAITRA CEO Chao Yuen-chuan
TAITRA CEO Chao Yuen-chuan
Lin Sheng-chung, vice minister of Ministry of Economic Affairs.
Lin Sheng-chung, vice minister of Ministry of Economic Affairs.
TAITRA claims that the visitor number totaled around 52,000 in four days, with overseas buyers coming from Japan, the U.S. Malaysia, Korea, Europe, Kenya, Australia, China, Hong Kong, etc., increasing by 22% from the 2008 edition to account for 10% of the total number. So the show continues to feature global presence as well as rising visitor volume.

Such encouraging numbers contrast against the auto parts sector in Taiwan: in 2008 Taiwanese makers produced NT$183.9 billion (about US$551 million, at US$1: NT$33.4) of auto parts, regressing 9.86% from NT$203.6 billion (US$610 million) posted a year earlier, according to the TTVMA (Taiwan Transportation Vehicle Manufacturers' Association).

Rising Export

But the export value of auto parts out of Taiwan in 2008 came to NT$152.6 billion (US$457 million) in the same year, for an increase of 3.4% from NT$147.9 billion (US$443 million) from 2007, which is remarkable considering many American and Japanese carmakers have been shutting down plants.

Taipei AMPA saw a 22% increase in foreign buyer number to 5,200.
Taipei AMPA saw a 22% increase in foreign buyer number to 5,200.
The four-day Taipei AMPA also included over 500 one-on-one meetings between domestic suppliers and foreign buyers, which included heavyweights as Audi, BMW, Federal Mogul, Agrale, Delphi, Meydan Otomotiv, Shaikh Abdul Khaliq & Sons, Polcar and so on, helping to generate an estimated US$44 million in business, according to the show organizer. Plus, a large procurement conference held by the Kenyan delegation also created new business potential.

Taipei AMPA 2009 and AutoTronics Taipei 2009 were held under the same roof of Nangang Exhibition Hall.
Taipei AMPA 2009 and AutoTronics Taipei 2009 were held under the same roof of Nangang Exhibition Hall.
Officially Recognized

During the opening ceremonies on April 14, 2009 and amid the VIPs and throngs of international media, Chao Yuen-chuan, CEO of TAITRA, said that the showing by Taiwanese auto parts makers has made the Taipei AMPA a well recognized exhibition, one certified by the UFI (Union des Foires Internationales or The Global Association of the Exhibition Industry) as the most professional platform for procurement of AM (aftermarket) auto pars and accessories in Asia.

Such official recognition has put the Taipei AMPA on top of the global sourcing agenda. "Major companies, such as BMW, Dlephi, Sanyo, Peugeot Citroen, Audi, Honda China and Mahindra & Manhindra are sending their executives to Taipei AMPA," Chao stated; "While auto businesses in Hong Kong, Korea, Malaysia, Egypt and Nigeria have also organized buyer delegations to visit the show."

Besides, Chao also pointed out that the global downturn has benefited the AM segment, for the financially mired Big Three automakers have forced nearly 1,000 downstream OEM parts dealers to the edge of shutdown, hence diverting buyers to AM suppliers. "This is going to bring lots of business opportunities for the AM auto parts industry in Taiwan."

Lin Sheng-chung, vice minister of Ministry of Economic Affairs, also cited at the show opening the achievements by Taiwanese auto parts and accessories suppliers in the global market, indicating that their efforts have contributed considerably to the island's economy over the past years.

Taiwanese makers saw their exports of auto parts and accessories grow annually by 3.18% to NT$195.66 billion (US$586 million) in 2008, according to Lin. "This proves that, despite an unfavorable environment, Taiwanese companies were able to overcome adversity and succeed in a niche market, which is no small feat."

TYC and Depo Brother both claimed sizable demand increase in AM segment as business driver this year.
TYC and Depo Brother both claimed sizable demand increase in AM segment as business driver this year.
Full Product Range

The 2009 Taipei AMPA's range of exhibits proved the event had lived up to its reputation for featuring huge product assortment, which included auto lamps, car body and frame parts, engine parts, fine-tuning parts, transmission parts, chassis parts, brake parts, tires and wheels, auto seats and interior accessories, auto repair tools, auto electronics and IT (information technology)-based maintenance and business management solutions.

Auto lamps were the stars of the show, with a couple of local leaders, such as TYC Brother Industrial Co., Ltd., Depo Auto Parts Ind. Co., Ltd., Eagle Eyes Traffic Ind. Co., Ltd., Sonar Auto Parts Co., Ltd., Just Auto Accessories Co., Ltd., Giantlight Traffic Supplies Instrument Co., Ltd., debuting hot sellers.

Auto lamps were the stars for visitors.
Auto lamps were the stars for visitors.
Becoming Mainstream

Depo displayed a series of DRL (daytime running lights) and LED auto lamps. Michael Hu, sales manager, noted that lamps with a strong green appeal have become mainstream in market, which, requiring more advanced technologies to produce, will help Taiwanese makers to keep ahead in the market. Besides, he added, the Taiwanese auto lamp sector is internationally famous for high integration of supply chains, from molds, electronic components, fixtures to finished auto lamps, with such integration enabling the sector to offer foreign buyers with one-stop shopping services.

Despite the global economic depression, Hu indicated that Depo, as the leading auto lamp supplier and a top-20 global brand in Taiwan, hasn't neglected business and capacity expansion, already having invested millions of US dollars in building an R&D center for development of auto headlamps and fog lamps and setting up new production lines. "Demand is sure to exist and grow in the AM sector," he said. "We are very optimistic about the market prospect."

Carlos Ting, vice president of sales at TYC Brother, one of the top-three auto lamp makers in Taiwan, also pointed out that LED headlamps featuring good optics and large frame sizes were the major displays at Taipei AMPA this year. "In addition to the AM sector, TYC brother has also carved out niches in the ODM (original design manufacturer) market," he said. "Contract orders for auto lamps for trucks and heavy-duty vehicles from Europe and North America will prop up our business operations this year."

Audi Look-alikes

"Audi-look-alike" might be the buzzword among Taiwanese auto lamp makers in the tuning parts segment this year at Taipei AMPA, with Sonar launching a series of auto headlamps featuring stylish and streamlined exteriors similar to Audi headlamps. Milton Yang, president of Sonar, mentioned that Audi is an influential trendsetter in auto styling, whose design concepts often prove truly popular with consumers.

Other innovations were displayed by Eagle Eyes, Just Auto and Giantlight. Eagle Eyes's Honda Accord 08-09 4D Headlamp has a bright black frame, and incorporates an ION projector, CCFL and amber reflectors. Developed to be recyclable and reusable, the product was officially recognized as a green car application and component at the show.

Giantlight launched its GL-1313-HW series 7-inch headlamp with white LED DRL, which complies with ECE R87 standards for achieving 900cds luminous efficiency with only 4-5 LEDs and features improved thermal dissipation and UV-resistant finishes. The product is a winner of the AMPA Innovation Awards 2009.

Just Auto, a seasoned maker of LED auxiliary lamps, unveiled its LED Side Marker Lamp for trucks, which is innovatively designed with a downward light to illuminate the ground to help drivers maintain proper distance when trailing other cars. The downward light, with six white or yellow LEDs, is E11-approved and patented in Japan, Taiwan, China, Germany and the U.S. This lamp was highly praised for safety-oriented innovation at the show.

Award Winners

The AMPA Innovation Award made it easier for foreign buyers to spot creative products and suppliers in various categories at the show.

Just Auto`s LED Side Marker Lamp and HCB`s chairman Hwang Chern-bin.
Just Auto`s LED Side Marker Lamp and HCB`s chairman Hwang Chern-bin.
One 2009 AMPA Innovation Award was given to the Limited Slip Differential launched by Hong Tien Co., Ltd., a specialized maker of tuning parts for racing cars. The differential has a magnesium-aluminum alloy housing and is forged at mid-temperature range of between 500 to 600 Celsius for excellent durability. C.Y. Li, president of the firm, indicated that forging is key to the functionality of the product, which is 66% lighter than traditional differentials, making it ideal for racers and electric cars, for which lightweight is important.

Another exhibitor engaged in light-reduction engineering is Taiwan Automotive Research Consortium (TARC), which unveiled its Lighteweight Rear Suspension for Automobile Chassis at the show. Using almost entirely high-strength steel with tensile strength of 590MPa and above, TARC engineers applied hyrdoforming technology to produce the structure to completely eliminate using stamped parts and forging arms commonly seen in conventional rear suspensions, effectively cutting weight by 15%.

Gianfranco Desiderio, R&D engineer of Auto Consulting Sa.s. Di Cofano A. & C. of Italy and Marcelino L. Galido, marketing services manager of Laguna Carparts Mfg. Inc. of the Philippines.
Gianfranco Desiderio, R&D engineer of Auto Consulting Sa.s. Di Cofano A. & C. of Italy and Marcelino L. Galido, marketing services manager of Laguna Carparts Mfg. Inc. of the Philippines.
Also, the R&D institute showcased a number of lightweight auto parts, including aluminum composite disks, aluminum knuckles, thin-walled heat-resistance exhaust manifolds and magnesium wheels, which are all 10-30% lighter than their competing products. These lightweight parts play important roles in this era of energy-conservation and may help drive Taiwan's auto parts industry further ahead.

Headlining the auto repair tool segment at the show was the Universal Adjustable Camshaft Pulley Holding Tool, developed by Hwang Cherng Bing Specialty Tools Inc. (HBC), a top-notch auto repair tool maker in Taiwan. Patented for its multi-functionality, the tool is designed with an adjustable wrench and grooved pins that make it versatile, suitable for all kinds of engines. Over 20,000 units have already been sold in the U.S. and Europe, with major German brands as Klann and Muller among the buyers.

Going Global

After years of effort, TAITRA is seeing the Taipei AMPA increasingly become more global in terms of foreign-exhibitor representation.

This year two national pavilions for Thai and Filipino exhibitors were set up, as well as dedicated zones for Chinese and Korean suppliers. In total, there were 14 exhibitors from Thailand, 12 from the Philippines, 10 from Korea and around 40 from China.

Hong Tien’s Limited Slip Differential and Lightweight Rear Suspension Structure for Automobile Chassis .
Hong Tien’s Limited Slip Differential and Lightweight Rear Suspension Structure for Automobile Chassis .
Chris Chang, manager of the Overseas Business Team at BullsOne, a Korea-based supplier displaying wide-ranging engine care products, waxes, cleaners, sterilizing deodorizers, air refreshers and car accessories, said that her company has attended Taipei AMPA for 10 times, mainly because the show is a very professional business platform for BullsOne to explore overseas markets. She indicated that over the past decade, the number of Korean exhibitors has been rising, adding "We are very glad to see the show organizer concentrate on us, for this will help to build recognition for Korean suppliers at such a professional trade fair."

Marcelino L. Galido, marketing services manager at Laguna Carparts Mfg. Inc., a Filipino maker of metal stamped and plastic injected auto parts, also highly praised AMPA for being globalized, saying "We are grouped by the MVPMAP (Motor Vehicle Parts Manufacturers Association) to exhibit in a national pavilion for the first time. We come here to look for bigger business opportunities." According to Galido, the 12 Filipino exhibitors showed different auto parts, in a joint effort to zero in on the OEM and AM sectors.

Jeijo Seulanto, sourcing representative of Startax of Finland.
Jeijo Seulanto, sourcing representative of Startax of Finland.
Jeijo Seulanto, sourcing representative of Startax of Finland.
Jeijo Seulanto, sourcing representative of Startax of Finland.
Jacek Radom, president of Hipol LLC of Poland.
Jacek Radom, president of Hipol LLC of Poland.
Less Red-tape

Among the 40-plus Chinese exhibitors at the show was Guangzhou Kanmingsi Auto Parts Industry Co., Ltd., which has been producing pistons and related parts for years. Jocelyn Lin, manager of the company, said that exhibiting at the Taipei AMPA presents less red-tape for Chinese suppliers trying to find access into the global market than at fairs back home. "Foreign buyers have to hold invitations from Chinese companies when visiting local exhibitors. Such regulation stands in the way of overseas business expansion," she stressed.

Standing out as the only Italian exhibitor at the show, Auto Consulting Sa.s. Di Cofano A. & C. and Gianfranco Desiderio, R&D engineer, said that they came looking for a qualified distributor for their EOBD (European On-Board Diagnostics) software and related performance kits in Greater China. "Flying took more than 20 hours; it's very costly and exhausting. However Taipei AMPA is well known as one of the best professional trade fairs for auto parts in Asia, we think it is worth our efforts."

Candid Comments

With the Taipei AMPA boasting 22% growth in the number of overseas buyers this year, one only needs to listen to some of the comments made to discover why.

Michat Mieczkowski, sourcing manager of FOTA S.A. of Poland, visited the show twice this year, looking for suspension parts and, above all, "what is the newest." Coming to the Taipei AMPA has allowed his company to find three competent Taiwanese suppliers, with whom he has quickly built close cooperation over the past two years. "However, we found only three qualified Chinese partners at the Shanghai Show, which is 20-times larger than the AMPA," he said. "Taiwanese makers are more sensitive to quality. This is why I am here again and will visit the next Taipei AMPA."

Believing quality outweighs price, Jacek Radom, president of Hipol LLC of Poland, a supplier of engines parts for Japanese cars, said that this was his fourth visit to the Taipei AMPA. Emphasizing that Japanese cars command around 20% share of the Polish car market, Radom said: "AMPA is the best auto parts fair in Far East, because we can find the best quality at the show. We insist on using the best products in Japanese cars in our country."

Key Merits

Ahmed Ucucu, general manager of Al Marifah Dubai branch, stressed that he is especially impressed by Taiwanese makers' strong commitment to quality, loyalty and honesty over the past three years, dealing with them on truck body parts and mechanical parts.

Jeijo Seulanto, sourcing representative of Startax of Finland, a supplier of auto electronics, praised Taiwanese makers for being reliable businesspeople. "I think they really know how to do business with European buyers, because they guarantee reliable quality and are stronger in IT technology than Chinese makers," he said, a remark based on having worked over 20 years with Taiwanese suppliers.