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Taiwan Auto Parts Industry Backgrounder

Source: Taiwantrade | Updated: 27 April 2015

Following intensive and growing commercial and cultural ties between Turkey and Taiwan, Taiwan’s auto parts industry is gradually entering the Turkish market with a consolidated annual growth. This growth is expected to increase in the next few years as relations between the countries continue to develop.

 

Accordingly, Taiwan’s auto parts industry continues to enjoy sustainable growth in world markets thanks to its expertise and focus on creating new products through synergy with other strong sectors in the country. Taiwan is particularly strong in aftermarket products and solutions, especially those spare parts needed after auto accidents. The industry is also developing the relatively new field of telematics, taking advantage of Taiwan’s highly developed electronics sector.

 

Export-oriented

 

After several decades, Taiwan’s auto parts industry has acquired the ability to produce varied products in small quantities as well as considerable product development capabilities. Most manufacturers, especially those focused on lamps, bumpers or rubber & plastic parts, develop products mainly for the aftermarket, which accounts for the 80 to 90% of global aftermarket supplies. Collision parts, auto metal plates and back mirrors made in Taiwan have also captured 90% of world market. Furthermore, Taiwan is world number 1 in mold manufacturing technology, as well as in mold quantity and quality.

 

The small size of the domestic market has pushed local manufacturers into global competition where Taiwanese companies are even entering the OEM and IC design sectors. The great majority of makers have adopted partial process automation and developed FMS (flexible manufacturing systems) that allow the production of small batches of all kind of products that meet international quality standards.

 

Fully realized supply chain

 

Taiwan possesses a complete auto parts supply chain; most of the firms are small and medium size enterprises (SMEs) that have created a highly integrated supply network. The industry is characterized by its extensive center-satellite systems and seamless cooperation between central and satellite factories. This system, enhanced by a wide network of clusters scattered throughout the island, enables production flexibility, a diversified product range and low production costs. There are currently around 2,800 auto parts and accessories makers in Taiwan, with around 300 of them providing original equipment.

 

The new world of telematics

 

Telematics is the integration of telecommunications, informatics, and automotive electronics to satisfy such needs as convenience, traffic information, communication, entertainment, safety, and business. This promising new sector is linked with the so-called Intelligent Transportation System (ITS), which is playing a big role in government plans for enhancing the traffic control around Taiwan. The unbeatable ICT credentials of Taiwan continue to play a major role in enhancing auto parts and innovation in interactive automobile systems, thus boosting cooperation between traditional auto parts makers and the giants of electronic and computer technologies, who see an opportunity for diversifying their business in the new era of smart vehicles.

 

Though lamps and auto sheet metal after collision parts are still the kings of Taiwanese auto parts in the world market, the outstanding R&D capabilities of the electronics industry are making themselves felt in global markets with the introduction of all kind of telematics devices, from traditional GPS systems to TFT displays, Front Collision Warning Systems, CMOS cameras, Engine Control Units (ECU), Personal Navigation Devices (PNDs) or Head-up displays (HUDs).

 

It is expected that in 2016, about 90% of all new cars will be equipped with wireless-communication equipment or V2V (vehicle to vehicle) communication devices, and Taiwan is already working in this direction thanks to strong government support and collaboration between manufacturers and research institutes.

 

Taiwan Auto Parts flowing into world markets

 

According to statistics from the Taiwan Transportation Vehicle Manufacturers Association, Taiwan’s auto components industry total output in 2014 amounted to $6.6 billion USD, which marks a nearly 5% growth from 2013. The USA was the major destination of Taiwanese auto parts with a share of 40.79%, followed by Japan, China, UK and Australia.

 

Prospects for 2015 are excellent since the North American market will likely continue growing; low fuel prices will stimulate new car purchases around the world and will also allow drivers to put on more miles, therefore demanding more aftermarket parts.

 

Regarding Turkey, the growing ties between both countries have contributed to an outstanding overall export value to Turkey of $1.7 billion USD last year, with exports consist primarily of machinery, electronic and electrical equipment, appliances, textiles, base metals, plastics and rubber. Taiwan auto parts exports to Turkey last year reached nearly $55.2 million USD.

 

Though machine-tool makers are enjoying the greatest success amongst Taiwanese industrialists in Turkey, the trade volume between the two countries has a lot of room for growth, thereby offering great opportunities for auto parts suppliers to continue to increase their sales in the country.

Automechanika 2015

 

Taiwanese companies will showcase their latest products at this year’s Automechanika show at the Tüyap Fair Convention and Congress Center. Featured companies as below:

 

Advantech
www.advantech.com.tw/
Advantech was founded in 1983 and is a leader in providing trusted innovative embedded and automation products and solutions. It offers comprehensive system integration, hardware, software, customer-centric design services, and global logistics support; all backed by industry-leading front and back office e-business solutions. Advantech has always been an innovator in the development and manufacture of high-quality, high-performance computing platforms.

 

Advantech will introduce the UTX-3115 Fanless Palm-size IoT Gateway, a mini-size system designed for IoT applications such as automation, smart buildings, logistics and environmental monitoring.

 

ASUS
www.asus.com/tr/
ASUS is a worldwide top-three consumer notebook vendor and maker of the world’s best-selling, most award-winning motherboards. A leading enterprise in the new digital era, ASUS designs and manufactures products that perfectly meet the needs of today’s digital home and office, with a broad portfolio that includes motherboards, graphics cards, optical drives, displays, desktop and all-in-one PCs, notebooks, netbooks, servers, multimedia devices, wireless solutions, networking devices, tablets and smartphones.

 

ASUS will be presenting ASUS Cam, a car camcorder featured for its excellent performance in image quality.

 

DEPO
www.depoautolamp.com
Established in 1977 in Kulang, DEPO has been a pioneer and also a world leading manufacturer in the automotive lighting industry. Depo currently has 30 different categories containing over 20,000 products. The company provides a wide variety of products for customers and has been accredited with several international certifications, including ISO 9002/ 9001:2000/ 14001, ISO/ TS 16949 QS9000 and CAPA. Moreover, DEPO has been elected  as one of Taiwan’s Top 20 International Brand from year 2005 to 2010, a proof of the firm’s great product quality and solid management.

 

DEPO will showcase its new solutions in headlamps at Automechanika.

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