World's Leading Automotive B2B Gateway

Ford Lio Ho Motor, Yulon Motor, China Motor
in Taiwan planning to expand exports of complete vehiclesToyota's subsidiary Kuozui Motors also expected
to start exporting vehicles in 2008

  The new vehicle sales in Taiwan, which recovered to a level of around 500,000 in 2004 to 2005, declined in 2006 to 366,000 due to influences from the sluggish economy. The production of vehicles in 2006 also decreased from that of 2005 by 143,000 to 303,000. The new vehicle sales in the period from January to September 2007 also continue to be in a slump and the production of vehicles decreased by 13.7% compared to that of the previous year.

  There is a string of plans to export finished vehicles from Taiwan, partially due to the sluggish new vehicle sales. Although exports of finished vehicles in 2004 - 2005 were practically from China Motor (Mitsubishi Motors has a stake in the company) only, Ford Lio Ho Motor (Ford's subsidiary) started exporting the Escape in 2006 (the exports in 2006 were 7,216). In 2007, China Motor started exporting for Chrysler while Yulon Motor plans to start exporting under a partnership with Nissan. Kuozui Motors, which is Toyota's subsidiary, is also expected to start exporting finished vehicles in 2008.

■Production capacity - major automobile manufacturers 460K, commissioned manufacturers 220K

  The major automotive manufacturers that operate in Taiwan are Toyota, Honda, Mitsubishi Motors, Isuzu and Ford, The total annual production capacity of the five manufacturers are 458,000. Nissan, Suzuki, GM, Chrysler and Hyundai Motor commission their production to local manufacturers and the annual production capacity is 220,000 (among the local manufacturers, Formosa Automobile of which annual production capacity is 20,000, has halted the production since the end of 2006).

■Taiwan: Production bases of major automobile manufacturers

■Production of light vehicles in Taiwan to recover 400K in 2011

  According to CSM Worldwide, production of light vehicles in Taiwan will recover from 280,000 of 2006 to 380,000 in 2009 and 400,000 in 2011.

  When looking at the production by automobile manufacturer, Honda will have the full production with 35,000 in 2008. Toyota will recover to the level of 110,000 in 2008 and 140,000 in 2011.

■Toyota: Sales of Yaris released at the end of 2006 are favorable and launches Innova in 2007

  Toyota released the Innova (IMV) in July 2007. It will terminate the production of the Zace (TUV) by the end of 2007, as it does not meet the exhaust emission regulations that will be strengthened in 2008 in Taiwan. The Company also released the Yaris in November 2006. The Innova and the Yaris are produced by Kuozui Motor. The Yaris has already become Toyota's core model and was in the second best selling model in the period of January to July 2007 in Taiwan (the best selling model was the Corolla Altis).

  The Company is expected to fully remodel the Corolla Altis and start exporting the model to Southeast Asia in 2008.

■Toyota: Start producing Yaris and Innova with Kuozui

■Exports the next Corolla Altis model to Southeast Asia

■Nissan: Launches Livina/Grand Livina, plans to export the light truck Cabstar to Mexico

  Nissan started producing the Livina/Grand Livina by commissioning the production to Yulon Motor and launched the model in October 2007.

  The Company fully remodeled the light truck Cabstar (Atlas) in November 2007. Nissan plans to export the new Cabstar, which uses a new global platform designed for light trucks, to Mexico.

■Nissan: Starts the production of a strategic model Livina and a new Cabstar by commissioning to Yulon Motor

■Exports Cabstar to Mexico from the end of 2007 with a planned volume of 5,000/month

■GM:Releases Excelle following Buick LaCrosse while plans to launch Enclave

  GM released the Buick Excelle, which is produced by Yulon Motor on commission, at the end of 2006. This is the second model following the LaCrosse. The Company plans to release the third locally produced model Enclave in 2008.

■GM: Starts the production of Buick Excelle on commission, plans to launch Enclave

■Honda: Production in Jan. - Sep. increased thanks to favorable sales of new CR-V

  Honda fully remodeled the CR-V, which is produced by a wholly-owned subsidiary Honda Taiwan, in early 2007. The new CR-V has sold over 10,000 in the period of January to July against the targeted annual sales of 15,000. It is in the forth position among the best selling passenger cars by model following Toyota's Corolla Altas, Yaris and Camry. Thanks to the favorable sales of the new CR-V, Honda was the only manufacturer that exceeded the previous year on the production in January to September 2007 by automobile manufacturer.

■Mitsubishi Motors: Releases Lancer Fortis, expands exports to Philippines from China Motor

  Mitsubishi Motors released the Lancer Fortis (Galant Fortis), which China Motor produces, in September 2007. Although its targeted monthly sales are 500, it is believed that the Company received orders of 500 vehicles within a week after the release of the model.

  Also, in May 2007 the Company added the Mitsubishi Zinger (jointly developed with China Motor based on the Challenger) produced by China Motor to the export lineup to the Philippines that started in 2004.

■Mitsubishi Motors: Starts producing Lancer Fortis and Colt Plus at China Motor

■Chrysler: Sells Delica manufactured by China Motor in Mexico, also produces minivans at Southeast Motor of China

  Chrysler is strengthening the alliance with China Motor. The Company produces the minivan Chrysler Town & Country at China Motor and also started the production of a sister model of the Town & Country, the Dodge Caravan at Southeast Motor of China that China Motor holds a stake. The Company also sells the Delica produced by China Motor in Mexico under Dodge brand.

■China Motor: Produces Chrysler Town & Country, also produces Dodge Caravan in China

■Exports Delica to Chrysler Mexico while expands exports to Mitsubishi Motors' distribution network in Philippines

■Suzuki: Launches SX4 by importing finished vehicles

  Suzuki imported finished vehicles of the SX4 and started selling in November 2006. The Company has not released models produced locally since the Swift in 2005. Prince Motors, which manufactures Suzuki's vehicles, started having financial problems in September 2007 but Suzuki says there is no plan to alter their partnership.

■Suzuki: Starts import and sales of SX4, continues the partnership with Prince Motors

■Ford: Launches a new model i-Max and starts local production of diesel Focus

  Ford released the new minivan model i-Max in July 2007, which Ford Lio Ho Motor developed based on Mazda Premacy.

  In August 2007, the Company added a diesel engine specification to the Focus manufactured by Ford Lio Ho Motor. Ford plans to have a diesel engine specification to the new Mondeo scheduled to be released at the end of 2007 and says it will increase the percentage of diesel engine vehicles sold in Taiwan to 30 - 40%.

■Ford: Starts the production of the new minivan i-Max based on Mazda Premacy

■Manufactures diesel engine Focus and plans to add diesel engine Mondeo

■Continues production of the current model of compact commercial vehicle Econovan/Bongo using improved engines

■Formosa Automobile: Terminates the production of former Daewoo models, negotiates a production partnership with GM/VW

  Formosa Automobile terminated the production of former Daewoo models on license at the end of 2006 and is expected to terminate the sales at the end of 2007. The Company is currently negotiating with GM on producing GM-Daewoo models under license. It is also negotiating with VW to produce Skoda models, which its associated company imports and sells, on commission.

■Formosa Automobile: Terminates production of former Daewoo models and negotiates with GM/VW on production partnership

■New vehicle sales of 2006 declined by 148K to 366K, Jan. - Sep. 2007 also decreased by 12.7%

  New vehicle sales in 2006 in Taiwan declined by 148,000 compared to those of 2005 to 366,000 (based on the number of registration plates issued) due to aggravated effects from the recession. The lowest sales of new vehicles were in 2001 with 347,000 in the recent 10 years, and the sales of 2006 were the second lowest level.

  In 2007, new vehicle sales in January to September decreased by 12.7%. As for the expected figure for the full year, Hotai Motor that distributes Toyota vehicles will only manage to sell 325,000 while China Motor and Yulon Motor from the Yulon Group will only manage to sell 320,000 (both figures released in October 2007. The original forecasts at the beginning of the year were 360,000 - 380,000). As for the forecasts for 2008, Hotai Motor forecasts 360,000 and Yulon Motor forecasts about the same sales as 2007.

■Production in 2006 declined by 143K to 303K, Jan. - Sep. 2007 also declined by 13.7%

  Production in Taiwan in 2006 declined by 143,000 compared to that of 2005 to 303,000 due to sluggish sales. The lowest production in the recent 10 years was in 2001 with 272,000 and the production in 2006 was the second lowest level. The production in the period of January to September 2007 also was a 13.7% decrease compared to that of the same period of the previous year.

  Among major manufacturers, Honda is steady. The production in 2006 decreased by 4,000 compared to that of 2005 (although this is a 17% decline, the decrease is rather small compared to other major manufacturers) while the production in January to September 2007 increased compared to the same period of the previous year (other major manufacturers decreased).

Source: TTVMA

■Exports of finished vehicles in 2006 were 8,000 thanks to Ford's expansion, China Motor to expand exports in 2007

  Companies that export finished vehicles from Taiwan are two companies : China Motor, in which Mitsubishi Motors holds a small stake, and Ford's subsidiary Ford Lio Ho Motor Company. Although the scale of exports is still small, the volume reached 8,000 in 2006 and the volume in the period of January to September also reached the same level as that of 2006.

  China Motor used to mainly export the Veryca and the Varica but now exports the Space Gear (from 2004), Galant Grunder (from 2006) and Zinger (from 2007) to Mitsubishi Motors' distribution network in the Philippines. In July 2007, the Company started exporting the Delica to Chrysler's distribution network in Mexico and is expected to expand its export.

  Nissan plans to export the Cabstar produced at Yulon Motor on commission from the end of 2007.

  Ford started exporting Ford Escape/Mazda Tribute in 2006. It mainly exports the right-hand drive Escape to Ford's distribution networks in Japan, Australia and New Zealand.

Source: TTVMA