Jan 01, 2009
Further slumps on the new car market in Taiwan have pushed major auto parts makers to seek business in the AM (After-sale Market) territory. Tong Yang Industry of the Tong Yang group and Juili Enterprise have made repeated downward revisions to their OEM business ratios.
Domestic new car sales in 2008 are expected to fall again to below 230,000 units. Automakers predict further decline in 2009. In light of the pessimistic prospects for Taiwanese and global new car markets, major car and motorcycle component manufacturers have no choice but to put their hope on the AM market.
Tong Yang Group’s bumper plant, the business plan for 2009 will be continued expansion in after-sale market parts business. The vast Mainland China market will be a major target in its future operations strategy.
Juili Enterprise, a major producer of body parts for automobiles and motorcycles, has carried on its expansion on the after-sale maintenance market in recent years. Currently, its AM sales have surpassed its OEM orders by a large margin. In the future, Juili will make further efforts to concentrate on expansion in car and motorcycle AM parts business across the globe.
Ta Yih Industrial, a joint venture with Koito Manufacturing of Japan, has long been the biggest auto lights supplier in Taiwan. In the past two years, the company has changed its policy and begun to sell Taiwan-made auto lights back to Japan for the new car market there. Facing continued falls in new car sales in Taiwan in recent years, Ta Yih was still able to make profits in each of the first three quarters of 2008, while the last quarter still looks promising.
Source:TAITRA