Major Auto-Parts Makers in Taiwan Optimistic Toward 2012

Taipei, Feb. 14, 2012 (CENS)--Several listed auto-parts makers in Taiwan recently expressed optimism toward 2012 for both the aftermarket (AM) and original equipment (OE) segments.

Tong Yang Industrial Co., Ltd., the world's largest maker of aftermarket (AM) plastic body-parts and OE parts supplier to many automakers in Taiwan, China and other nations, posted revenue of NT$885 million (US$29.5 million) in January, down 16% year-on-year (YoY) and down 24.7% month-on-month (MoM). Right Way Industrial Co., Ltd., a major maker of engine pistons, had revenue of NT$84 million (US$2.8 million), an 8.7% YoY increase but an 11.6% MoM decline. Hota's Jnauary revenue hit NT$272 million (US$9.1 million), up 36.1% YoY and up 11.0% MoM.

Tong Yang attributed its revenue decrease in January to less workdays in the month due to the Chinese New Year holiday, but stressed that the bad winter weather in Europe and the U.S. is expected to raise demand for AM parts.

According to the China Association of Automobile Manufacturers (CAAM), new-car sales in China are expected to increase to outstrip 20 million units this year, up more than 8% from 2011, to fuel demand for OE parts and benefit Tong Yang's operation in China.

In 2012, Crispin Wu, Tong Yang president, says the maker aims to further raise its share in major markets as well as explore new markets. Tong Yang has been aggressively cutting production costs, raising yield rate, installing new automated production lines, and expanding capacity for three years, and reaping returns.

Hota Industrial Manufacturing Co., Ltd., an OE transmission parts supplier to American and German automakers and tier-one parts brands, says that its production lines are filled until at least the end of February, with order visibility through to June.

Hota says that it has been gradually increasing shipments to Punch of Belgium's factory in Nanjing, China, with some 143,000 sets of transmission gearboxes to be shipped to the customer this year. In addition, demand from North America is also increasing. The maker says it is expected to achieve record revenue for the first quarter.

David Shen, Hota's chairman, says the company enjoyed a 13% revenue growth in 2011 and the growth is expected to be even higher this year.