Some 300,000 New Cars to be Sold in Taiwan This Year
2010/08/20 | By Quincy LiangTaipei, Aug. 20, 2010 (CENS)--An increasing number of local automakers are expressing optimism toward this year's new-car sales in Taiwan, which are forecast to outstrip 300,000 vehicles.
The recently released report from the Industry & Technology Intelligence Services (ITIS) also estimates that the annual automotive production value in Taiwan is expected to grow 17.2% this year to reach US$9.54 million.
The research program, however, said that sales of new cars in the third quarter are expected to decline 20.5% quarter-on-quarter (QoQ) due to seasonality.
Insiders pointed out that more than 30 auto-parts are fast-tracked gainers in the cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA), whose duties will be cut to zero within two years, setting up a very advantageous position for local exporters of such products.
With car ownership in China to surpass 100 million vehicles in three years, the demand for aftermarket (AM) auto parts looks strong, so the reduced duties will further upgrade competitiveness of Taiwan-made auto parts in China, especially when Taiwan is one of the most important suppliers of AM auto parts there.
In addition, the demand for lithium-ion batteries for electric vehicles (EVs) is expected to continue expanding in China, while the cut tariff on the item is expected to greatly increase the shipments from the island to the huge market.
ITIS statistics showed that Taiwan's overall automotive production value in the second quarter was US$2.52 billion, up 2.87% QoQ and 29.7% YoY. In the third quarter, a traditional off season on the island, the production value of assembled vehicles is estimated to decline 20.5% QoQ to US$90.8 million, while that of auto parts decrease 6.3% QoQ to US$1.3 billion.