Taiwan Transportation Vehicle Output Value up 6.4% to over NT$400 B. in First 9 Months

Taipei, Nov. 10, 2005 (CENS)--The aggregate production value of Taiwan's transportation vehicle industry reached NT$402.98 billion (US$11.99 billion at US$1: NT$33.6) in the first three quarters this year, up 6.4% from the same period of last year, according to IT IS (Industrial Technology Information Service & Promotion) Project sponsored by the government.

Statistics compiled by IT IS show that the accumulated output value of the automobile sector in the first three quarters was NT$299 billion (US$8.9 billion), up 5.5% from a year earlier; that of powered two-wheelers (PTWs, including motorcycles, scooters, all terrain vehicles, or ATVs etc.) sector was NT$64.1 billion (US$1.91 billion), up 3.6%; and that of bicycles was NT$39.71 billion (US$1.18 billion), up 19.1%.

Among the total automobile production value, according to IT IS, the value of complete-autos reached NT$170.7 billion (US$5.08 billion) in the first nine months, up 6.9% from the same period of last year; while that of auto parts was NT$128.2 billion (US$3.82 billion), up 3.6%.

In the third quarter, a total of 104,000 new cars were sold, up 9.2% from the same period of last year. IT IS attributed the volume growth to the active sales campaigns launched by local automakers and to many auto makers continuing pushing new models. IT IS said that as the oil price has turned stable, the annual sales of new cars in Taiwan is expected to reach a robust level of 480,000 units.

Most of Taiwan-made auto parts are exported to such major markets as the U.S., Japan, and mainland China; while major export product categories include rubber tires, auto lamps, plastic bumpers and other plastic parts. After the recent final ruling by the Illinois Supreme Court on the State Farm case (which rejected a class action by plaintiffs), IT IS predicted that the exports of Taiwan-made aftermarket (AM) auto parts are expected to grow significantly, especially those of major makers of auto lamps and body parts.

Taiwan's PTW sector registered accumulated production value of NT$64.1 billion (US$1.91 billion) in the first three quarters, up 3.6% from the same period of last year. The production value of complete-PTWs rose 3.7% to NT$33 billion (US$982.14 million), while that of PTW parts surged 3.4% to NT$31.1 billion (US$925.6 million).

A total of 390,000 PTWs were sold in the third quarter on the island, down 6.2% from a year earlier. In order to elevate their sales volumes for higher market shares, most local PTW brands offer preferential terms for buyers of 100cc scooters during the period.

Taiwan's PTW parts are exported to some major markets including the U.S., Japan, Indonesia, and Vietnam, with major product categories including rubber tires, gears, carburetors, head lamps etc.

IT IS pointed out that Taiwan's top-two PTW makers, Kwang Yang Motor Co., Ltd. (KYMCO) and Sanyang Industry Co., Ltd. (SYM), have mapped out new investment projects to set up plants in India and Indonesia, respectively. India is currently the world's second-largest PTW market with annual sales volume of about six million units, while Indonesia is the largest single market in Southeast Asia with annual sales volume of over three million units.

The European Union (EU) issued a final ruling in July this year to start levying a 48.5% anti-dumping tariff (from 30.6% originally) on bikes imported from mainland China. EU also decided to levy a 34.5% anti-dumping duty rate on bikes from Vietnam. All major Taiwan bike makers operate production plants in Vietnam, except for Strongman Products Corp., and will be subject to the same punitive tariff rate.

EU's sanction activities have totally eroded the price advantages of bicycle makers in mainland China and Vietnam, while also forcing Taiwan-based companies in the two nations to adjust their strategies.

According to IT IS, some Taiwan-based bicycle makers in Vietnam and mainland China have begun seeking to set up new production sites in other Southeast Asia nations such as Cambodia or countries in Eastern Europe for lower costs and greater direct market access.

IT IS said that the overall development trend shows a sign that more and more Taiwan-based bicycle makers would step up returning back to the island.

Taiwan Transportation Vehicle Industry Production Value (2000-2005 ) Unit: NT$1 million
Year Sector		2000	2001	2002	2003	2004	2005 (Jan. -Sept.)	Y-o-Y (%)
Auto	Complete	177,735	130,020	157,733	195,586	217,648	170,799	6.9%
	Parts	140,449	127,092	155,164	143,434	167,683	128,292	3.6%
	Overall	318,184	257,112	312,897	339,020	385,331	299,091	5.5%
PTW	Complete	36,671	30,343	30,667	38,760	42,107	33,003	3.7%
	Parts	25,899	20,463	24,333	31,990	40,459	31,180	3.4%
	Overall	62,570	50,806	55,000	70,750	82,566	64,183	3.6%
Bicycle	Complete	31,893	22,447	22,240	23,790	28,865	23,749	24.4%
	Parts	26,973	17,571	16,366	16,648	20,029	15,959	12.0%
	Overall	58,866	40,018	38,606	40,438	48,894	39,708	19.1%
Total		439,620	347,936	406,503	450,208	516,791	402,982	6.4%

Source: MOEA, IEK-IT IS Project (2005/10)