Taiwan's auto parts makers step up their efforts to lay out the mainland market

The mainland auto market has risen against the backdrop of the international financial crisis, and the auto aftermarket maintenance market has also expanded, attracting Taiwan’s large auto parts manufacturers to seize business opportunities. Large parts manufacturers such as Dongyang, Twi West, and Debao are increasing Strive to open up the mainland market.

According to Taiwan media reports, Tweedi increased the shareholding ratio of Changchun FAW Sihuan Factory and transferred the business to after-sales maintenance services to supply the demand in the Northeast and North China. Debao plans to increase investment in Jiangsu Chenyang Plant by 2 million. In U.S. dollars, the business is also switched to after-sales maintenance services, and new products are added to expand the profit base.

Dongyang's factory in Nanjing will also start construction this month. It is expected that mass production will be carried out in April next year, and will initially produce bumpers and tank guards, which will become the fulcrum for Dongyang to seize the aftermarket maintenance market in mainland China.

Dongyang general manager Wu Yongmao said that due to the stimulation of mainland automobile policies to the countryside, the demand for after-sales maintenance in mainland China was strong, which led Dongyang's profit growth in related factories in mainland China. The operating income in the first four months of this year increased by 16.8% year-on-year and since March. From a profitable turnaround, the operating revenues of Chongqing Dajiang Dongyang, Qiangqiang, Changchun Fuao, Nanjing Kaiyang, etc. also rose month by month.

According to industry insiders in Taiwan, mainland car sales will exceed 10 million units this year, while Taiwan’s self-produced cars sold only 180,000 vehicles on the island last year. Vigorously exploring the mainland market will greatly increase Taiwan’s auto parts production capacity utilization rate.

Zhang Xiaojun, executive vice president of the China Federation of Machinery Industry, said recently that the average annual growth rate of the mainland automobile market during the 10 years from 1998 to 2008 was 15.5%. It is expected that by 2020 it will double from this year's 10 million vehicles to 20 million. Vehicles, both sides of the automobile industry should establish a sales philosophy, methods and systems suitable for the Greater China market.