Taiwan’s Auto Parts Makers move full speed into world markets

taiwanSuppliers succeed with high quality, reasonable prices, and small-batch production.

The auto parts industry plays a vital role in Taiwan’s economic development and international trade, with exports increasing rapidly and steadily over the years. One of the most important factors behind this success, most informed observers and buyers agree, is a comprehensive, highly efficient subcontractor network that makes up a central-satellite plant system within which individual parts manufacturers specialize in specific areas. This system enables high production flexibility, broad product range, low production costs, and fast development time. The great majority of Taiwan’s auto parts and accessory makers are small- or medium-sized enterprises (SMEs), most of which focus on export sales because of the limited domestic market. Approximately 80% of their exports go to the global aftermarket (AM), making Taiwan one of the world’s most important supply bases for AM replacement auto parts. There are currently about 2,800 makers of auto parts and accessories on the island; these include approximately 300 original equipment (OE) suppliers, many of whom also produce AM products. Continued Growth With strong competitive advantages in the global AM parts market, Taiwan’s auto parts makers have been enjoying stable export growth in recent years; the only exception was 2009, when the global recession led to an 8.5% decline.Data from the Taiwan Transportation Vehicle Manufacturers’ Association, or TTVMA, show that Taiwan’s auto parts exports totaled NT$197.9 billion (US$6.6 billion) in 2013, up 1.6% from the previous year. In the first six months of 2014 exports hit NT$102.4 billion (US$3.41 billion), a 6.25% increase from the same period of 2013.

Core Advantages
In addition to certain unmatched core factors that give them an edge over the rest of the world, such as high production flexibility, broad product range, low production cost, and fast development time, auto parts makers in Taiwan also have other outstanding advantages that help them continue to consolidate their commanding position in the global market. One is the division-of-labor between Taiwan and China (as well as some other countries), which allows plants on both sides of the Taiwan Strait to meet a wide range of customer needs in terms of pricing, quality, quantity, and lead times. Another advantage, due mostly to the island’s extensive subcontractor network, is Taiwan’s willingness to accept the small-batch, large-variety orders that are typically offered by AM and performance-turning parts customers worldwide.

Asia’s Most Professional Auto & Motorcycle Parts,
Electric Vehicle Sourcing Fair on April 6-9, 2016! The important joint exhibition of the global automobile & motorcycle parts and accessories, and electric vehicle industries “Taipei International Auto Parts & Accessories Show”, “Taipei International Automobile Electronics Show”, “Taiwan International Electric Vehicle Show”, “Tuning & Car Care Taiwan Show” and “Taiwan International Motorcycle Parts and Accessories Show” have 1,401 exhibitors using 3,816 booths to present the most innovative products related to automobile together and garner a high reputation in auto and motorcycle industry. Taken place at the Nangang Exhibition Hall and TWTC Exhibition Hall, this 5-in-1 mega motoring show has successfully attracted 6,665 foreign buyers from 135 countries (regions) and 44,000 local visitors during the 4-day exhibition. The top 10 buyer countries (regions) are from Japan, China, the United States, Malaysia, Thailand, Hong Kong, South Korea, Singapore, Indonesia and the Philippines. TAITRA and over 60 overseas branches of the Ministry of Economic Affairs have arranged procurement trips for foreign buyers with annual turnover over USD 10 million. The 5-in-1 Taipei Mega show is famous for its quantity of professional buyers and excellent exhibition service. Therefore, it has earned support from the Taiwanese manufacturers and is also able to attract the active participation of foreign manufacturers. Join AMPA 2016 on April 6-9, 2016 when once again rolled out Asia’s best shows on wheels!