Taiwan Firms Advised to Cooperate With Major Automakers in China

Taiwan Firms Advised to Cooperate With Major Automakers in China. Check it out:
(Taiwan Economic News Via Thomson Dialog NewsEdge) Taipei, Sept. 22, 2006 (CENS)--Some experts suggested local auto and parts makers cooperate with the top-15 automobile-manufacturing conglomerates in mainland China in automotive electronics, fuel cell, weight-cutting, and hybrid-power fields to gain footholds in China's 11th five-year plan to make China one of the world's top-three automakers by 2010



The specialists made the statements at a recent industry seminar held by Industrial Economics & Knowledge Center (IEK) of Industry & Technology Intelligence Services (ITIS). Huang Wen-fang, chief of the business affairs section, Taiwan Transportation Vehicle Manufacturers' Association (TTVMA), pointed out that about 5.76 million new cars were sold in mainland China in 2005 (compared with the global volume of about 61 million units), making the nation the third-largest car market in the world. This year, new-car sales in China are expected to reach about seven million units, edging out Japan as the No. 2 market for cars

According to Huang, new-car sales in China are expected to reach about 10 million units in 2010, while the annual production volume in the nation is 5.79 million units

The section chief pointed out that China's 11th Five-Year Project plans to make China one of the top-three carmakers through several strategies, including imaginative development of home-grown brands and techniques; cultivation of internationally competitive automobile conglomerates and parts suppliers; encouragement of complete-auto and auto-parts exports; accelerating enterprise restructuring; and development of energy-saving and environmentally-friendly vehicles

For Taiwan companies, Huang stressed, automotive battery, automotive electronics parts, core materials, and other fuel-saving devices and technologies are windows of opportunities for business development across the Taiwan Strait

Last year, China's auto exports reached 164,000 units, outstripping the 161,000 imported for the first time; and the volume in the first six months this year was 141,000 units, compared with 103,000 imported. Huang said that most of the assembled vehicles exported from China are under-5-ton commercial types and 1.0L-1.5L passenger cars, but he suggested Taiwan companies focus more on medium- to high-end cars for the China market

Hung Shih-jieh, industry analyst of ITRI, said that Taiwan companies should hold firmly their advantageous small-batch, large-variety production mode and try to tap into international tier-one parts-supplier chains in China. He suggested local auto suppliers to choose the top-15 automakers in China as targeted partners so as to assure stable orders, but be wary of the major automakers' excess capacity and profit margins

In addition, he also suggested Taiwan companies upgrade product development and quality, as well as delivery and cost-control so as to enhance the feasibility of joint new-car development with Chinese automakers.

Copyright 2006 China Economic News Service. Source : Financial Times Information Limited (Trademark)
The opinions and views expressed in comments, blogs, etc. are those of the authors alone and not necessarily those of TMC, TMCnet, or its editors. TMCnet reserves the right to edit, delete, or otherwise make changes to the content that appears on these pages at its own discretion and as it deems necessary.

Listed below are links to sites that reference Taiwan Firms Advised to Cooperate With Major Automakers in China:

Around TMCnet Blogs

Latest Whitepapers

TMCnet Videos