With the U.S. economic recovery still uncertain, car enthusiasts in the world's largest market for auto performance-tuning parts and accessories have been shying away from expensive top-end products. Buyers in Europe and Japan, on the contrary, have been much more willing to shell out the cash needed to make their cars more powerful and sporty. Russia, too, is emerging as a significant market for performance-upgrading products.

According to Bruce Liu, president of Camco Auto Sangyo Co., Ltd., one of the biggest and most experienced traders of tuning parts and accessories in Taiwan, auto tuning parts and accessories suppliers in Taiwan have been consolidating their foothold in the international market in recent years, despite increasing competition from mainland China.

In the past few years, Liu says, more and more foreign buyers have turned to Taiwanese suppliers or Taiwan-headquartered companies with production facilities in mainland China for tuning parts and accessories. Mainland makers, in contrast, are rapidly losing ground as what Liu calls their relatively shoddy wares fail to meet the high quality, design and performance expectations of the car-enthusiast market.

According to Liu, Taiwan is well positioned to succeed in the tuning parts market due to the strong development capability, high product quality, and small-batch, large-variety production mode of local producers. This market also presents an opportunity for domestic auto parts makers to grow and sidestep the fearsome competition from mainland producers in the lower-end parts aftermarket.

Still, Liu worries that an overconcentration of suppliers in the same market segment will continue to drag prices lower--a problem, he says, that is worsening as more newcomers are attracted to the growing segment in Taiwan. He urges suppliers to stop competing just on price and to focus instead on strengthening their R&D capability, market information, and product offerings.

Putting this advice into action, Liu's company has been pouring more and more investment capital into mold/die development and tapping new product niches, such as high-end intake systems (including air filters and manifolds) for light trucks in the strong U.S. market.

No. 1 Performance Meter

Product innovation is also king at Auto Gauge (Taiwan) Co. Ltd., which claims to be the first and foremost maker and exporter of performance meters in Taiwan.

To further consolidate its market-leading spot, Auto Gauge plans to introduce a series of cutting-edge meters from the middle part of this year.

The first product due out is the world's first six-in-one performance meter. Joining optoelectronic and electrical components, this device measures oil pressure, water-temperature, and oil temperature with digital displays. It also has an electronic booster, LED voltage warning light, and rotation per minute (RPM) meter with shifting light that shines during gear-shifting, all neatly fitted into an eye-catching five-inch round meter housing.

In addition to its six-in-one functions, the meter also uses advanced light-guide techniques and reflectors to balance the illumination of the logos, needles, and gradations. The surface glass of the high-tech meter has a convex lens to enlarge the displayed data.

Auto Gauge's second product to soon be unveiled is a series of 10 two-inch-diameter high-contrast meters. Models in the series feature patented light-guide technology that uses three LEDs, newly designed printed circuit board (PCB) and integrated circuit (IC) chips, and computer-designed reflector panels to achieve optimal display results. When the power is off, the meters are totally dark and blind, and when the power is on the indicator needles and digits are clearly displayed.

Auto Gauge claims that its high-contrast technology resolves the problem of shadowing from rear-projection lighting sources and achieves unmatched lighting-balance on the gauge surfaces. The firm has also applied this technology to a series of two-inch seven-color performance meters. The color of all the gradations, needles and logos on the gauge can be manually or automatically alternated.

Auto Gauge also plans to soon demonstrate the world's first full series of performance meters for diesel-engine automobile models. According to company president Polo Chou, the firm has a comprehensive range of technical capabilities in electronic, optoelectronic and electrical machinery integration, enabling it to produce any kind of meter for a wide range of industries.

In addition to its technological edge, Auto Gauge can deliver existing models one to two weeks from receipt of order with the help of a computerized inventory system, says Chou. Other advantages of the company are its competitive pricing, achieved by large-volume production (the company ships about 100,000 gauges per month) and top-notch quality--the result of cutting-edge manufacturing capability and a stringent quality-control program.

Auto Gauge is also one of the most experienced gauge makers in Taiwan. The company provides a wide range of quality gauge products for yachts, generators, heavy-duty machines and various kinds of vehicle. The company has been transferring its focus to automobile gauges in recent years. Auto Gauge exports all of its gauge products to major markets, including Japan, the U.S., Europe and Australia. Currently, tuning gauges account for about 60% of the company's revenue, while yacht and aftermarket auto/machinery products each contribute 20%. About 70% of the company's products are sold under the Auto Gauge brand, while the rest are on original design manufacturing (ODM) terms.

Titanium Exhaust Systems

Another company that stresses constant product innovation is Dynamik Exhaust Industry Co., Ltd., which late last year introduced pure titanium exhaust systems and this year plans to build on the new line as well as step into production of high-level, heat-press carbon-fiber tuning parts and accessories.

Jerry Huang, president of the Dynamik, claims that his company is one of only a few makers of pure titanium exhaust systems in the world and the only one in Taiwan. Dynamik will soon demonstrate its new titanium cat (catalytic converter)-back (including middle- and rear-section) exhaust systems for the BMW E46 M3 and sport car and Mini Cooper S mini car models as well as full converter systems, including headers, for the new Nissan 350Z sport car. The company has also developed a series of pure titanium exhaust canisters with blue-burned tips.

Huang claims that his company's titanium exhaust systems are 40% lighter than stainless steel exhaust systems and provide a power gain of eight to 15 horsepower with their dyno-proof airflow design. Huang points out that very few exhaust systems on the market today can achieve such power gains. By integrating Dynamik's stainless steel exhaust manifold and pure-titanium cat-back systems, Huang says that his company's products are the first choice of many buyers. To further ensure quality, Dynamik only uses imported aerospace-grade titanium plate and piping from Japan.

In a bid to further please car fans worldwide, Dynamik designs its exhaust systems with eye-catching styling, surface treatment finishing, and specially tuned sound waves. In addition to their head-turning design, Dynamik's exhaust systems are widely known for their superb performance, enabling full-range horsepower and torque outputs.

Huang says that his company invested heavily in developing technology to handle the complex processing of titanium parts. The company, he claims, has even surpassed Japanese rivals in its technical capability in this segment.

By insisting on the development of only top-end exhaust systems with real power gain functions, Dynamik has been able to compete on quality rather than chasing low-cost rivals through price-competition.

Dynamik recently began production of heat-press carbon tuning parts and accessories, which are about 70% to 80% lighter and a similar percentage stronger than rival products made of other materials. The company currently sells carbon racing pedals and gearshift knobs, and will gradually add new products to meet market demand.

Dynamik's attention to quality has paid off with contracts from several first-tier suppliers to German and Japanese car brands. The company is also rapidly moving into the original equipment (OE) and aftermarket segments, and it hopes to expand its sales of original design manufacturing (ODM) parts to leading international brands in the future.

Wild Thing

Cheetah Auto Enterprise Corp., a supplier of top-end performance-tuning auto parts and accessories, has also built a name for quality and innovation. President Tony Wu says his company is the best supplier of top-quality, top-end tuning parts and accessories, providing customers with custom design and manufacturing services and flexible small-batch production.

Cheetah's product line encompasses exhaust systems for turbocharged sports cars, pure carbon-fiber parts and accessories (both interior and exterior), sheet-metal body parts, and turbocharger systems.

Wu says that unlike other exhaust-system makers in Taiwan, which usually develop universal-type products, Cheetah sells exhaust systems specifically designed for turbo cars. Its exhaust pipes feature direct bolting (or fitting) onto the target models. Systems have been developed for the Subaru Impreza WRX, Mitsubishi EVO VIII, and Nissan 350Z sports cars. All of the systems are sent to the United States for precision tests.

Among the carbon fiber products that the company designs for its customers are engine hoods, side mirrors, spoilers, and interior decoration and instrument panels.

Cheetah also works with a major local manufacturer of sheet-metal body parts to develop dies for the pressing of shark-fin ventilation slots (like those on the BMW Z3 and Mercedes SLR) for aftermarket sheet-metal fenders. Unlike competing products, Wu claims, his fenders offer guaranteed quality and can be easily fitted onto cars.

Cheetah can also supply turbochargers made by IHI of Japan as well as peripheral parts.

Wu says his company can rival Japanese producers on quality, while undercutting their price by about half.

All of the company's products are exported to customers in the U.S. (which takes about 80% of the total), Japan, Australia, the United Kingdom, Switzerland, and Canada.

Tuning Specialist

About 12 years ago, Camco Auto Sangyo Co., Ltd. Became one of the first trading companies in Taiwan to specialize in auto parts and accessories for the performance-tuning market. Today tuning parts and accessories account for about 65% of the company's revenue, and Camco is one of the best-known suppliers of such products worldwide.

Camco president Bruce Liu is confident about prospects in the auto-tuning parts and accessories business, noting that global demand for such items has been rising along with the growing appetite of car buyers for better engine performance, more aerodynamic design, and unique exterior and interior styling.

Liu also believes that his company has a number of advantages over rivals, including its ability to quickly grasp market trends and provide products in a timely manner to meet changing customer needs. The company has benefited, moreover, from its location in Taiwan, which Liu says has the best supply base for tuning parts and accessories.

Liu decided to turn the firm's focus to auto-tuning parts and accessories after discovering that mainland Chinese rivals were rapidly catching up with Taiwan in the market for traditional auto parts.

The decision has proved to be wise. Over the years the company has accumulated abundant experience and professional know-how in the tuning-parts market, and its customer base has steadily expanded.

From its position as a small and minor segment in the early 1990s, the auto-tuning parts and accessories sector has grown into a huge and comprehensive market that encompasses everything from car renovation to interior and exterior styling and aerodynamic design.

The tuning part market is also quickly evolving with the introduction of new products and new materials, such as high-precision aluminum and carbon FRP rear spoilers, Liu says. Such items, once used purely for looks, now are designed to improve the aerodynamic performance of vehicles. Liu notes other examples of innovation in the segment, such as lightweight tuning mufflers made of pure carbon or titanium, and durable and lightweight engine compartment strut bars made of top-end magnesium alloy.

Camco's core competitiveness lies in its outstanding services, fast product development, quick delivery, and comprehensive product lines, Liu says. All of these strengths, he says, result from the company's extensive experience, long-term relationships with suppliers, and sound financial backing.

Liu says that his management team constantly gathers information from customers, international auto-parts shows, and professional magazines in order to keep abreast of market changes. The more professional know-how you have, Liu says, the more business opportunities you win.

As a trading company, Camco does not have any production facilities, but it closely cooperates with about 200 local mold/die developers and manufacturers, passing new ideas to these partners, who turn concepts into finished products. The company also provides financial support to key partners to help them with product development.

This hands-on approach has proven vital to the success of traders in the tuning-parts and accessories market, says Liu. He notes that the segment is becoming more technologically sophisticated and incorporating new materials, forcing suppliers and traders to continually source new and better items.

Another change in the auto-tuning parts and accessories market has been the shift away from purely decorative items to products that offer real performance and safety gains, says Liu.

Camco carefully chooses its suppliers, he says. But rather than seeking out big and well-known suppliers, the company prefers to work with small and medium-sized makers that are well managed, offer efficient and flexible production, and can consistently meet product development, manufacturing, and delivery schedules.

Liu is confident about the competitiveness of Taiwan-made tuning parts and accessories due to their global reputation for high quality and reasonable prices. According to the president, Taiwan's sound industrial infrastructure, including both the ample supply of high-quality materials and advanced manufacturing techniques, has helped local companies stay competitive in global markets. For example, Liu says, the abundant local supply of high-quality and low-priced stainless steel and highly automated production equipment have enabled local makers of stainless steel tuning mufflers to out-compete rivals in mainland China and other areas on both price and quality.


Contact information on companies covered by the article:

Auto Gauge (Taiwan) Co., Ltd.
No. 8-1, Lane 130, Nankang Rd., Sec. 3, Nankang Dist., Taipei, Taiwan 115
Tel: (886-2) 2654-7070, 2654-7171
Fax: (886-2) 2654-7700
Website: www.autogauge.com.tw
E-mail: taiwanno1@autogauge.com.tw

Dynamik Exhaust Industry Co., Ltd.
No. 8, Lane 204, Tatung St., Peitou, Taipei 112, Taiwan
Tel: (886-2) 2897-5206
Fax: (886-2) 2897-5208
Website: www.dynamik.com.tw; www.dynamikweb.com.tw
E-mail: sales@dynamik.com.tw

Cheetah Auto Enterprise Corp.
No. 180, Yucheng St, Taipei 115, Taiwan
Tel: (886-2) 2653-3240, 2782769
Fax: (886-2) 26533218
Website:www.cheetah.com.tw
E-mail: cheetahs@ms57.hinet.net

Camco Auto Sangyo Co., Ltd.
2 Fl., No. 23, Sec. 1, Hangchou S. Rd., Taipei 100, Taiwan
Tel: (886-2) 3343-3118
Fax: (886-2) 3343-3115
Website: www.camcoauto.com
E-mail: camcoint@ms24.hinet.net