Taiwan: Yulon Group launches own brand Luxgen7 and Tobe M'car Taiwan OEMs align with Chinese Dongfeng, Geely, and Chery
Yulon Group launches Luxgen7 and Tobe M'Car, its first models under the own brands
Prince Motor ties up with Chery Automobile of China, while beginning production of the Chery...
Sanyang Industry to expand the alliance with Xiamen King Long Motor Group, planning to...
ECFA between China and Taiwan: Both countries agree to include compact cars in the...
Taiwan Government promotes EV; Yulon Group is developing its own brand EV model
Major auto manufacturers' annual capacity is 615K, of which 565K are manufactured by 5...
Toyota began to export finished vehicles from Taiwan following China Motor, Ford and Nissan
Hyundai and Suzuki begin to import and sell the India-made i10 and Alto, respectively
Collaborative report with IHS Global Insight
Mid-term Production Forecast
Executive Summary
Taiwan had new vehicle sales of 294K in 2009, up by 65K over the previous year. In addition to the business upturn in 2009 after the depressive new vehicle sales for straight three years until 2008, it is said that the sales tax reduction or exemption program for compact cars implemented by the Taiwanese Government at the beginning of the year successfully stimulated demand for new vehicles.
The Yulon Group, retaining Yulon Motor and China Motor, launched the Luxgen7 and M'car in 2009 under the own brand names of Luxgen and Tobe, respectively. The Group plans to produce the Luxgen brand vehicles with Dongfeng Automobile in China as well as expanding the product lines (the M'car is based on Chinese Geely Automobile's Panda).
The Yulon Group is developing EV models of its own brand vehicles. The Taiwanese Government decided to permeate EVs in January 2010. Prince Motor and Chinese Chery Automobile are planning to develop EVs. Chery will build a new EV development center in Taiwan according to the announcement in November 2009.
In addition, Prince will begin to produce the Chery A3 of Chery. Sanyang Industry and Chinese Xiamen King Long Motor Group are planning to jointly produce busses in Taiwan. With the expanding Economic Cooperation Framework Agreement (ECFA) between Taiwan and China, alliances between Taiwan capital and Chinese auto manufacturers are booming.
As to offshore manufacturers having their bases in Taiwan, Toyota began to export the Corolla Altis to Middle East in January 2009; China Motor exported Mitsubishi and CMC brands' vehicles; Ford exported Ford/Mazda brands'; Nissan exported finished vehicles. Taiwan exported total 10K vehicles in 2009.
Hyundai and Suzuki began to import and sell India-made vehicles. Their cheapest models are the Hyundai i10 priced at below 400K NTD (about 1.13 million Yen) and the Suzuki Alto at 450K NTD (about 1.27 million Yen). Their prices are set in the lowest price range in the Taiwan market.
■Affiliations between Taiwanese and Chinese auto manufacturers
| ■Taiwan's automotive production, new vehicle sales, export of finished vehicles | (units) |
| 2005 | 2006 | 2007 | 2008 | 2009 | Jan. 2009 | Jan. 2010 | |
| Vehicle production | 446,345 | 303,329 | 283,439 | 182,974 | 226,356 | 9,590 | 27,176 |
| New vehicle sales | 514,626 | 366,311 | 326,777 | 229,495 | 294,423 | 21,541 | 25,946 |
| Exports of CBU | 1,081 | 8,420 | 7,689 | 7,196 | 9,655 | 1,431 | 1,228 |
| Export/Production | 0.2% | 2.8% | 2.7% | 3.9% | 4.3% | 14.9% | 4.5% |
| Sources: | Production and Export data is from TTVMA (Taiwan Transportation Vehicle Manufacturers Association). Sales data is from the Ministry of Transportation. |
| Note: | The export shows the export sales by auto manufacturer, not includes the Cabstar exported by Yulon Nissan. |
■Taiwan Government's commodity tax reduction or exemption program by 30K NTD for buying a new compact car subject to scrapping a car
| The Legislative Yuan (equivalent to the Japanese national diet) passed the bill of the program for reducing the goods (commodity) tax on purchasers/registrants of new compact cars or motorcycles in January 2009. The program was effective from January to December 2009. The reductions were 30K NTD for vehicles smaller than 2,000 cc including micro busses and trucks, and 3K NTD for motorcycles. The program required such purchasers and registrants to scrap their old vehicle within six months after the new vehicle registration. The Taiwan Government deliberated the extension of the period by one year; however, the government rejected it due to the significant impact of lower tax revenue. |
■Yulon Group launches Luxgen7 and Tobe M'Car, its first models under the own brands
The Yulon Group launched MPV Luxgen7 as its first model bearing its own brand of Luxgen in August 2009. The group plans to produce the Luxgen brand vehicles with Dongfeng Automobile in China, while planning to introduce SUV and sedan models.
The Yulon Group began to produce the M'car as the first model bearing its 2nd own brand of Tobe in November 2009. The M'car was developed on the Geely Panda of Geely Automobile, a Chinese manufacturer, by the Yulon Group. The Group started export the model to Vietnam in December 2009 before the sale in Taiwan. The M'car will be released in Taiwan in spring 2010. The base price is expected to be about 360K NTD (about 1.02 million Yen).
■Yulon Group launches MPV Luxgen7, the first Luxgen brand model
| The Yulon Group began mass-production and advance sale of the Luxgen7 under its own brand name in August 2009. The MPV has been delivered since October. The Yulon Group Luxgen7 is a 3-row 7-seater MPV, which is the first model of the Luxgen brand. The Yulon Group developed the model using the platform of the old Renault Espace. The Luxgen7 is equipped with a 2.2-liter gasoline turbo engine developed by China Engine Corporation of the Yulon Group. |
| Luxgen Motor Co., Ltd. established in June 2009 by the Yulon Group will distribute the Luxgen7. It has 20 dealers. It is priced at about 800K to 1,050K NTD. It sets the monthly sales target at 300 to 500. The Yulon Group is developing the EV version of the Luxgen7, equipped with a Li-ion battery. The Group plans to release a SUV and a sedan under the Luxgen brand. |
| Notes: 1. | The Yulon Group is the parent company of Yulon Motor and China Motor. Luxgen is a coined word of Luxury and Genius. |
| 2-1. | The Yulon Group manufactures the Luxgen brand vehicles with Dongfeng Automobile. The Yulon Group established Luxgen (Hangzhou) Motor at the end of 2008 by taking a 50-50 stake with Zhoungyu Group. The Group was planning to produce the Luxgen brand vehicles at the new plant with an annual production capacity of 120K from 2010. Unfortunately, it failed to obtain the approval of Beijing. Thus, the Group requested Dongfeng Automobile to take a stake in the joint venture. |
| 2-2. | Dongfeng Automobile acquired the stocks of Luxgen (Hangzhou) Motor from Zhoungyu Group, and changed the company name to Dongfeng Yulon Motor Co., Ltd. The Yulon Group finally obtained the business approval from the Chinese Government in November 2009. |
| 2-3. | Dongfeng Yulon will manufacture the Luxgen brand vehicles for China from 2011 at the new plant in Hangzhou Zhejiang with an annual production capacity of 240K finished vehicles and 200K engines. Dongfeng Yulon plans to produce Dongfeng brand commercial vehicles. |
| The Yulon Group began KD-assembling of the M'car (read as my car), the first model bearing its 2nd own brand Tobe in November 2009 and started export to Vietnam in December of the year. The Group will begin to export the M'car to Philippines in the middle of 2010, while planning to export it to China. It is expected to release the model in the Taiwanese market after March 2010. The Group set the production target at 8K to 10K units in 2010. |
| The M'car is based on the Panda of Geely Automobile in China. The interior of the model is designed by the Yulon Group. The M'car is equipped with a 1.3-liter engine. The Yulon Group is developing M'car BEV (Battery Electric Vehicle) equipped with a Li-ion battery. It is said that the Group is developing the second model of the M'car equipped with a 1.5-liter engine. |
| Sales and export will be undertaken by Yulon Tobe Motor Co., Ltd. established in September 2009 by the Yulon Group. Some Yulon Nissan dealers will make an exclusive space for dealing the Tobe brand vehicles. The base vehicle price will be about 360K NTD for the MT version (about 11K USD) and 400K NTD for the AT version (about 12K USD). |
■Prince Motor ties up with Chery Automobile of China, while beginning production of the Chery A3
Prince Motor aligned with Chery Automobile of China. It began pre-limited production of the Chery A3 in August 2009. It will start to sell the Chery A3 in March 2010 after it shifts to mass-production.
■Prince Motor ties up with Chery Automobile of China, producing the Chery A3
| Prince Motor aligned with Chery Automobile of China at the beginning of 2009. In August, it started pre-limited production of the Chery A3 at the Tatu Plant. The Chery A3 is equipped with a 2.0-liter engine and an AT. It plans to start sale of the A3 in March 2010 after it shifts to mass-production. Prince motor will import engines, ATs, and auto body pressed parts from China, and the others (equivalent to about 60%) from Taiwan. |
| Chery Automobile positions the Prince Motor's plant as its production base in Taiwan. Chery plans to sell Prince-made vehicles in the coastal area of China. It also plans to produce the classy models of the G5 and G6. It is said that Chery is considering an annual production of 100K in the future. |
| Notes: 1. | In Taiwan, Shengrong Auto, a subsidiary of Prince Motor, will sell the A3. |
| 2. | Prince Motor faced financial crisis in September 2007, and it was forced to sell four premises including the Tucheng Plant and the headquarters within three years. In addition, it sold a 30% stake of 50% in Taiwan Isuzu Motors in June 2008, which was obtained from Isuzu in July 2006. |
■Sanyang Industry to expand the alliance with Xiamen King Long Motor Group, planning to jointly produce busses in Taiwan
Sanyang Industry plans to expand the alliance with Xiamen King Long Motor Group of China. Both companies will establish a joint manufacturing company of busses in Taiwan after the entry into the ECFA between China and Taiwan.
■Sanyang Industry and Xiamen King Long Motor Group of China agree to produce busses in Taiwan
| Sanyang Industry and Xiamen King Long Motor Group, a Chinese bus manufacturer, agreed in September 2009 to establish a joint venture in Taiwan to manufacture and sell busses, buss parts and components. Both companies will devise specific plans after the entry into the ECFA by China and Taiwan not only for sales in Taiwan but also for export to foreign countries including China. If it is realized, it will be the first investment by a Chinese auto manufacturer in Taiwan. |
| Note: | Sanyang Industry took a 25% stake in Xiamen King Long United Automotive Industry at the end of 2004. Sanyang has manufactured fixed route busses of the Chinese manufacturer in Taiwan since 2008 (contracting it out to Chinchun Motor). It sells busses under the Sanyang Golden Dragon. |
■ECFA between China and Taiwan: Both countries agree to include compact cars in the framework at an early point
China and Taiwan started official talks about the Economic Cooperation Framework Agreement equivalent to the Free Trade Agreement in January 2009. In the first session, both countries agreed to sign the ECFA at an early point. The early harvest of the ECFA includes compact cars. Taiwanese manufacturers expect to obtain a considerable export ceiling for finished export cars to China.
■China and Taiwan start official talks about ECFA
| China and Taiwan had the first specialist session for the Economic Cooperation Framework Agreement (ECFA) in January 2010. Both countries agreed to accelerate the process to sign the agreement. The ECFA is equivalent to the Free Trade Agreement between two countries, including exemption from custom duty, investment assurance and protection on intelligent property rights. It is said that the framework will not include accepting Chinese labors and opening to Chinese agricultural products. |
| Both Chinese and Taiwanese governments agreed to deal compact cars as one of the early harvest agenda of the ECFA. The early harvest agenda are those to be implemented or solved at an early point. The two governments plan to cap the number of exporting units and lift the custom duty each other. According to the Taiwan Transportation Vehicle Manufacturers Association (TTVMA), Taiwan requested China to set the import ceiling at 10K from China equivalent to 25% of total imported vehicles as of October 2009. Taipei requested Beijing to set the export ceiling to China at 100K, while Beijing expressed reservations about it according to the source. |
■Taiwan Government promotes EV; Yulon Group is developing its own brand EV model
The Taiwan Government approved the EV promotion program in January 2010. It plans to subsidize buying 3,000 EVs for the next three years. Of the Taiwan capital manufacturers, the Yulon Group is developing EV versions of the Luxgen7 and the Tobe M'car under its own brands. The Group is expected to participate in the projects to promote EVs. Chery Automobile, a Chinese manufacturer, announced that it would build a EV development base in Taiwan.
The Yulon Group plans to produce the EV version Luxgen7 at the joint venture with Dongfeng Automobile in China. The group also plans to sell an EV version of the Tobe M'car in China via the Geely Automobile's sales network. The Tobe M'car was developed on the Geely model.
■Development and sales plans for EVs by Taiwanese auto manufacturers
| Yulon Group | The Yulon Group is developing a Luxgen7-based EV. It also plans to produce it at the joint venture in China. |
| It is also developing a Tobe M'car-based EV. It plans to export the EV to China and sell using the Geely's sales network. |
|
| Prince Motor | Prince Motor is expected to develop an EV with Chery Automobile |
| Chery Automobile in November 2009 announced that it would build the Electric Vehicle (EV) R&D Center in Taiwan. Chery will build the center in the Green Energy Intelligent Vehicle Innovation Park (commonly known as EV Park) of the Changhua Costal Industrial Park, to which the Taiwan Economic Department attracts companies. The details are unknown, but it is said that Chery will tie up with Prince in the development to establish a R&D base for EVs for worldwide markets. |
| The Taiwan Executive Yuan, equivalent to the Cabinet of Japan, approved the 6-year EV promotion program in January 2010. It set the 2015 EV sales target at 45K and the export at target at 15K. It will subsidize the plan to introduce 3,000 EVs in ten model zones for the next three years. The Yulon Group and Taipei County drafted a model zone plan in Taipei County. The model zone is highly likely to be subsidized for the first time under the program. |
■Major auto manufacturers' annual capacity is 615K, of which 565K are manufactured by 5 major companies
Major auto manufacturers' annual production capacity is 615K in Taiwan, including the Tucheng Plant of Prince Motor which stopped producing Suzuki brand vehicles at the end of 2009. These manufacturers do not have any plan to expand the production capacity so far. For the information, Prince Motor will continue to produce vehicles at the Tatu Plant bought from Formosa Automobile.
The production capacity by manufacturer in Taiwan is as follows: 165K (two plants) by Kuozui Motors, a subsidiary of Toyota, 120K by Yulon Motor of the Yulon Group, 120K by China Motor in which Mitsubishi Motors takes a 13.96% stake, 130K by Ford Lio Ho Motor, 30K by Taiwan Honda, a Honda's subsidiary.
■Taiwan: Production bases of major auto manufacturers
| Ownership Ratio |
Assembly plant |
Annual production capacity (1,000 vehicles) |
Production models | |
| Kuozui Motors | Toyota 65% Hino 5% |
Chung Li | 100 | Toyota Camry, Corolla Altis, Wish |
| Kuan Ying | 65 | Toyota Yaris (Vitz), Vios, Innova, Dyna | ||
| Hino 300 series(Dutro), Medium-duty Trucks/ Buses | ||||
| Yulon Motor | Local 100% (Yulon Group) |
San Yi | 120 | Nissan Teana, Grand Livina, Bluebird (Bluebird Sylphy), Tiida (Tiida/Tiida Latio), X-Trail, Serena, Cabstar (Atlas) |
| Buick LaCrosse, Excelle (Lacetti sedan) | ||||
| Luxgen7, Tobe M'car | ||||
| China Motor | Mitsubishi Motors 13.96%, Yulon Group 39.94% |
Yang Mei | 120 | Mitsubishi Colt Plus, Delica, Lancer Fortis (Galant Fortis) Grunder (US Galant), Outlander, Savrin (Grandis), Zinger (Challenger) |
| Chrysler Town & Country | ||||
| Hsin Chu | Mitsubishi Delica Van, Veryca (Town Box Wide) | |||
| Fuso Canter, Medium-duty Trucks | ||||
| Taiwan Honda Automobile |
Honda 100% | Ping Tung | 30 | Honda Accord, Civic, CR-V, Fit |
| Ford Lio Ho Motor | Ford 70% | Chung Li | 130 | Ford New Mondeo, Ford Focus, Ford Escape/Mazda Tribute, Ford Econovan, Ford i-Max/Mazda 5 (Premacy), Mazda 3 (Axela) |
| Taiwan Isuzu Motors |
Isuzu 69.5% Prince Motors 20% |
Tatu | 8 | Isuzu Elf, Heavy-duty Trucks, Medium-duty Trucks |
| Prince Motors | Local 100% | Tatu | 20 | Chery A3 |
| Tucheng | -30 | Prince Motor stopped producing Suzuki vehicles at the end of 2009 at the Tucheng plant. |
||
| Sanyang Industry | Local 100% | Hsin Chu | 20 | Hyundai i30, Matrix, Getz Cross, Tucson, Santa Fe, Porter |
| Chinchun Motor | Local 100% | Kuan Ying | 1 | Sanyang Golden Dragon brand busses (Chinchun Motor manufactured the busses by commissioning) |
| Formosa Automobile |
Local 100% | Changhua | 1 | DAF Truck |
| The total annual production capacity is 615K units including the production of the Tucheng Plant of Prince Motor. |
||||
| Notes: 1. | Mitsubishi Corporation also takes a 4.78% in China Motor. Itochu also takes a 10.5% stake in Taiwan Isuzu. |
| 2. | Formosa Automobile sold the Tatu Plant to Prince Motor according to the agreement signed in April 2008. Formosa relocated the production to the plant of Formosa Plastic Group. It has continued to assemble DAF trucks. |
■Toyota began to export finished vehicles from Taiwan following China Motor, Ford and Nissan.
Toyota began to export the Taiwan-made Corolla Altis to Middle East in January 2009. For Toyota, it was the first export of finished cars from Taiwan. Hino Motors manufactures vehicles at Kuozui Motor like Toyota. Hino has been exporting busses to Australia since 2007.
■Toyota starts exporting Corolla Altis, and fully remodels the Wish
| Toyota started exporting the Kuozui-made Corolla Altis to Middle East in January 2009. It was the first time for Toyota to export finished vehicles from Taiwan. It will export below 20K in accordance with the 2010 plan. In November 2009, Toyota fully remodeled the Wish, which is manufactured at Kuozui Motor. It was fully remodeled in April 2009 in Japan. Its Taiwan version was developed by Kuozui. The price is set at 729K to 865K NTD and the monthly sales target is set at 1,600. In addition, Toyota slightly remodeled the Camry and the Yaris in March and September 2009 separately. |
| Note: | Toyota and Hotai, a local capital distributor which distributes Toyota vehicles, bought minor shares to increase a stake in Kuozui in March 2008 (Toyota's stake was up from 51.7% to 65%, Hotai's stake up from 15% to 30%, and the odd 5% is held by Hino). |
| Hino Motors stopped importing the Dutro from Japan in 2009, and began production at Kuozui. It sets the 2009 sales target at 900. |
| Note: | Hino used to produce only medium to large busses at the Kuan Ying Plant. The annual production capacity of Hino brand busses is 5,000. Hino started export of Kuozui-made busses to Australia in 2007. |
■China Motor focuses on light commercial vehicles, while Nisan and Ford export Cabstar and Escape respectively
China Motor of the Yulon Group, Nissan and Ford export finished vehicles from Taiwan. China Motor exports finished vehicles of Taiwan version Mitsubishi models under Mitsubishi and CMC brands to Middle East, Southeast Asia and Latin America. In October 2009, it exported a few Veryca mini busses. It has exported the Delica under the Dodge brand to Mexico since 2007.
Nissan has exported the light truck Cabstar to Mexico since the beginning of 2008, which are manufactured by Yulon Motor whose parent company is the Yulon Group, which include China Motors.
Ford manufactures the Escape at Ford Lio Ho Motor, its subsidiary, and exports the products to Australia and New Zealand.
■China Motor supplies CMC Veryca, a light commercial vehicle, to an US coachbuilder
| China Motor exported 64 Veryca units in October 2009 under the CMC (China Motor Corporation) brand to the US for the first time. The Veryca is a light commercial vehicle based on the Mitsubishi Town Box Wide. The exported products are the special models compatible with the US safety standards. Vantage Vehicle International, a US coachbuilder, builds up and sells the products as hot dog carts, hamburger carts and mobile vendors. |
| Notes: 1. | Mitsubishi Motors takes a 13.96% in China Motor. China Motor produces the Taiwan version of the Colt Plus, Galant Fortis, Grunder (US Galant), Outlander, Zinger (Challenger), Delica and Veryca. China Motor produces the Chrysler Town & Country |
| 2. | China Motor exports the Zinger and the Grunder to Mitsubishi dealers in Philippines. It also exports the Veryca under the CMC brand to Middle East, Southeast Asia and Latin America on a spot basis. It has also exported the Delica to Dodge dealers in Mexico as Dodge 1000 since 2007. |
| 3. | China Motor and Fujian Motor Industry Group established Southeast (Fujian) Motor Industrial Co. on a 50-50 stake basis in 1995. China Motor transferred a half of its shares of stock to Mitsubishi Motors. The joint venture, which is held by these three companies, produces Mitsubishi/Southeast brand vehicles for China. |
■Nissan fully remodels the Teana, while exporting the light commercial vehicle Cabstar to Mexico
| Nissan fully remodeled the Teana in April 2009, which is produced at Yulon Motor by commissioning (the monthly sales target is set at 500). Nissan has exported the light commercial vehicle Cabstar to Mexico since January 2008, which Yulon Motor manufactures by commissioning. Yulon Nissan Motor, its distributor, undertakes the export. It exports 5,000 per year. |
| Notes: 1. | Nissan took a 25% stake in Yulon Motor. It separated the sales function of Yulon Motor and established Yulon Nissan Motor in 2003 (Nissan takes a 40% and Yulon Motor 60%). Yulon Motor has become a local company capitalized by the Yulon Group. Nissan contracts out the production of the Teana, Grand Livina, Bluebird Sylphy, Tiida, Tiida Latio, X-trail, Serena and Atlas to Yulon Motor |
| 2-1. | Yulon Motor also allies with GM. Both companies established Yulon GM Motor, a distributor, in July 2005, in which Yulon Motor has a 51% stake and GM 49%. At the end of 2008, GM divested the 49% ownership stake in Yulon GM Motor to Yulon Motor for 1 NTD, and withdrew from the joint company. |
| 2-2. | Yulon GM Motor, as a wholly-owned company by Yulon Motor, continues to sell the Opel, Buick and Cadillac brands' vehicles (it has about 20 sales bases; it had sales of about 1,000 in 2008). In addition, GM has contracted out the production of the Buick LaCrosse and Excelle to Yulon Motor since 2006. |
■Ford plans to produce the Fiesta in 2011
| Ford will produce the Ford Fiesta at Ford Lio Ho Motor in 2011. The Fiesta is a model which was introduced in Europe in 2008. Since September 2008, Ford Lio Ho has imported and sold Germany-made finished vehicles. |
| Notes: 1. | Ford Lio Ho Motor produces Ford and Mazda brands vehicles. As to capital composition, Ford takes a 70% stake and the Lio Ho Group, a local company, 30% stake in Fold Lio Ho. |
| 2. | Ford Lio Ho has exported the Ford Escape to Australia and New Zealand since 2006. The export included the Mazda Tribute over the first 2 years. Ford Lio Ho exported the Tribute to Japan. |
| ■Taiwan: Export of finished vehicles by auto manufacturer | (units) |
| 2005 | 2006 | 2007 | 2008 | 2009 | Jan. 2009 | Jan. 2010 | |
| Kuozui Motors | 6 | 15 | 31 | 92 | 6,770 | 1,418 | 1,076 |
| Ford Lio Ho Motor | 8 | 7,216 | 3,588 | 4,818 | 2,002 | 120 | |
| China Motor | 1,062 | 1,189 | 4,069 | 2,285 | 883 | 13 | 32 |
| Prince Motors | 5 | ||||||
| Taiwan Isuzu Motors | 1 | 1 | |||||
| Total | 1,081 | 8,420 | 7,689 | 7,196 | 9,655 | 1,431 | 1,228 |
| Source: TTVMA | |
| Notes: 1. | The table above shows the export sales by auto manufacturer. The Yulon-made Cabstar has been exported since 2008. However, the number is not included in the data above because Yulon Nissan, a distributor, exports them. |
| 2. | As to Kuozui-made vehicles, Hino and Toyota officially began to export their respective products of Hino busses and the Toyota Corolla Altis from 2007 and 2009 respectively. The records of exports before them are unknown. |
■Hyundai and Suzuki begin to import and sell the India-made i10 and Alto, respectively
In Taiwan, Honda has the 6th largest unit sales following Toyota, Mitsubishi Motors, Nissan and Ford/Mazda. Honda is the one and only one foreign auto manufacturer that produces and sells products at its wholly-owned subsidiary.
Hyundai Motor took the 7th in sales following Honda. Hyundai ties up and contracted out the production to the Sanyang Industry, which produced Honda's products by commissioning. It added i30 to the production in 2009. Hyundai began to import and sell the India-made i10 from May 2009. The base model price is set at below 400K NTD (about 1.13 million Yen).
Suzuki began import sale of the India-made Alto from the end of 2009. The base model price is set at below 450K NTD. Suzuki stopped the production of the Solio and the Swift at the end of 2009, which was contracted out to Prince Motor.
■Honda produces the Fit at Taiwan Honda, expecting to import and sell the Insight from 2011
| Honda produces the Accord, Civic, Fit and CR-V at Taiwan Honda for the Taiwan market. Fit started production in October 2008. Honda slightly changed the Civic in March 2009. The Civic has been produced since April 2006. It sets the 2010 sales target at a share of 10%. It was 8.7% in the previous year. Honda is expected to import and sell the Hybrid version of Insight. |
| Notes: 1. | Taiwan Honda is a wholly owned subsidiary of Honda Taiwan (wholly owned by Honda), which was established in March 2007. The plant was once owned by Ta Ching Motor, which produced Fuji Heavy's models. |
| 2. | Honda had contracted out the production to Sanyang Industry, a local company, by 2002. It bought out a Ta Ching Motor's plant in 2002, and began to produce the CR-V and Accord on its own in 2003. |
■Hyundai starts production of the i30 at Sanyang Industry on commissioning, and start import sales of the i10
| Hyundai began to produce the i30 at the Sanyang Industry, its partner, in May 2009. The model was released in June. Hyundai aligned with Sanyang Industry in 2002. Sanyang produces the Matrix, Getz Cross, Tucson, Santa Fe, etc. by commissioning. In addition, Hyundai started import sale of the India-made i10 in May 2009. It sets the sales price of the base model at less than 400 NTD, which is the lowest in the Taiwan market. |
■Suzuki stops consignment production at Prince Motor, while beginning import sales of the India-made Alto etc.
| Suzuki aligned with Prince Motor, a 100% locally capitalized company. Prince Motor has manufactured the Solio and the Swift by commissioning for recent years. Suzuki stopped the production in Taiwan, and switched to import sales of finished vehicles. In November 2009, Suzuki started the import sales of the India-made Alto, of which base model is priced at 448K NTD. In addition, Suzuki imports and sells the Grand Vitara (Escudo), SX4 and Jimmy from Japan, and the APV from Indonesia. |
| Note: | Prince Motor terminated the automobile production at the Tucheng Plant after it stops the production of Suzuki vehicles. If it resumes the production of Suzuki vehicles, it will produce them at the Tatu Plant. |
| ■Taiwan's new vehicle sales by brand | (units) |
| 2005 | 2006 | 2007 | 2008 | 2009 | Jan. 2009 | Jan. 2010 | |
| Toyota | 150,324 | 107,462 | 104,834 | 79,365 | 111,695 | 8,229 | 7,556 |
| Mitsubishi | 86,661 | 55,894 | 46,765 | 36,465 | 45,943 | 3,454 | 4,215 |
| Nissan | 65,292 | 40,117 | 35,791 | 25,088 | 33,414 | 2,597 | 4,342 |
| Honda | 21,956 | 28,356 | 20,015 | 25,628 | 1,658 | 2,187 | |
| Ford | 55,283 | 30,212 | 24,898 | 12,611 | 17,923 | 1,281 | 1,555 |
| Mazda | 29,997 | 24,155 | 17,464 | 9,856 | 12,066 | 1,285 | 1,588 |
| Hyundai | 9,366 | 6,443 | 7,425 | 438 | 601 | ||
| Others | 127,069 | 86,515 | 59,303 | 39,652 | 40,329 | 2,599 | 3,902 |
| Total | 514,626 | 366,311 | 326,777 | 229,495 | 294,423 | 21,541 | 25,946 |
| Source: The Ministry of Transportation. | |
| Notes: 1. | The data are based on the issued license plates. Taiwan had the record highest of 576K new vehicles in 1994 |
| 2. | Honda's 2005 new vehicle sales, Hyundai's 2005-2006 sales are included in Others. The Toyota's data include the Lexus and the Nissan's data the Infiniti. |
| Taiwan : Light vehicle production by Manufacturing group (IHS Global InsightForecast) | (Unit) |
| Brand | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|
| FORMOSA | FORMOSA | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| YULON | LUXGEN | 0 | 1,592 | 1,437 | 1,714 | 2,057 | 2,245 | 2,468 | 2,705 |
| TOBE | 0 | 128 | 81 | 96 | 111 | 127 | 136 | 145 | |
| CHRYSLER LLC | CHRYSLER | 152 | 279 | 520 | 602 | 693 | 798 | 895 | 998 |
| FORD | FORD | 21,900 | 18,626 | 16,624 | 17,705 | 22,262 | 23,935 | 24,900 | 26,233 |
| GM | BUICK | 304 | 218 | 340 | 382 | 428 | 482 | 520 | 568 |
| DAIMLER AG | MITSUBISHI FUSO | 3,576 | 3,621 | 4,473 | 4,108 | 4,329 | 4,593 | 4,809 | 5,128 |
| HONDA | HONDA | 18,584 | 23,340 | 25,744 | 31,157 | 35,809 | 39,765 | 41,770 | 42,743 |
| ISUZU | ISUZU | 1,779 | 315 | 273 | 260 | 271 | 288 | 301 | 319 |
| MAZDA | MAZDA | 8,404 | 9,524 | 12,057 | 12,619 | 13,497 | 14,447 | 15,029 | 15,639 |
| MITSUBISHI | MITSUBISHI | 34,010 | 39,455 | 40,599 | 46,343 | 50,114 | 53,042 | 57,408 | 61,519 |
| NISSAN | NISSAN | 24,088 | 26,920 | 30,632 | 33,046 | 38,301 | 40,384 | 42,060 | 45,380 |
| SUZUKI | SUZUKI | 6,750 | 1,631 | 4,256 | 0 | 0 | 0 | 0 | 0 |
| TOYOTA | TOYOTA | 69,953 | 90,771 | 89,476 | 94,027 | 101,214 | 112,919 | 125,303 | 125,761 |
| CHERY | CHERY | 0 | 0 | 0 | 938 | 1,521 | 1,955 | 2,245 | 2,445 |
| GEELY | GEELY | 0 | 0 | 248 | 322 | 356 | 393 | 440 | 498 |
| HYUNDAI | HYUNDAI | 5,977 | 5,216 | 9,011 | 10,618 | 11,341 | 12,142 | 12,617 | 13,263 |
| N/K | N/K | 0 | 564 | 323 | 384 | 444 | 509 | 545 | 582 |
| TOTAL | 195,477 | 222,200 | 236,094 | 254,321 | 282,748 | 308,024 | 331,446 | 343,926 | |
(Note)
1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. Figures for 2008 and 2009 indicate actual production results.
3. All rights reserved. Reproduction of any data will require permission of IHS Global Insight.
IHS Global Insight Report
AUTOMOTIVE MARKET FORECAST OUTLOOK (Dec. 2009)
After years of poor sales, demand for light vehicles in Taiwan has shown a modest recovery in 2009. Up to October, sales were up by 10.5% to 212,000 units. Sales in November and December are likely to post stronger gains because of the base effect of the weak market in late 2008. IHS Global Insight now projects that the light vehicle market will exceed 250,000 units this year. However, the heavy commercial vehicle segment is still struggling. We expect demand to fall by 38% to around 5,000 units in 2009.
One positive factor for car demand has been the government's introduction of its subsidisation programme. This takes the form of a reduction of NT$30,000 (around US$900) in the commodity tax for each new car sold (effective from 19 January and in place only until the end of 2009). Besides the government's tax subsidy, other factors boosting sales include extended promotional activities by dealers, a bullish stock market performance, as well as a rebound in consumer confidence, stemming from warming cross-Strait ties with China.
In November, however, the industry expressed concern about the upcoming withdrawal of the incentives in 2010, and indicated that sales could fall sharply if the scheme was not continued. OEMs suggested they would delay or cancel the introduction of new models, a move that could exacerbate the negative effect in 2010. IHS Global Insight takes the view that after such sustained weakness, the markets will absorb more demand in 2010; we anticipate around 290,000 units. However, the risks to the forecast do look as if they are pointing to the downside.
Exports from Taiwan have been a real disappointment. By October, only 5,200 units of the Corolla, 840 units of the Ford Escape, 352 units of the Zinger, and about 200 units of the Veryca had been exported. With external demand weak and a lack of incentive for investment in Taiwan, we do not expect this figure to increase significantly in the near term.
Production changes include the start of output of the Hyundai i30 by San Yang in May 2009. By October, 765 units had been built. New versions of the Getz (i20), Santa Fe, and Tucson will add to production volumes from 2010. Meanwhile, Taiwan Honda commenced production of the Fit (Jazz) in March 2009. By October, 4,857 units had been made and over 6,200 units sold. CMC began production of the Colt Plus in January 2009. By October, some 6,097 units had been made and a similar number sold. The model has thus become CMC's best-selling passenger car, beaten only by the Veryca range of LCVs in the assembler's line-up. Production of Yulon's Luxgen MPV began in March 2009; a total of 522 units had been made by October. More bodystyle derivatives will follow. Production in mainland China is also expected from 2010: by Dongfeng Yulon at the Hangzhou plant. Prince Motors is currently the local assembler of and agent for locally made and imported Suzuki models. These models may shift to fully imported CBUs with their next generation. Prince has already started assembling and selling vehicles for Chinese automaker Chery. Production of the A3 started in November. The QQ, G5, and G6 models are tipped to follow the introduction of the A3.
Production in 2010 is projected to follow the moderate increase in domestic sales. We project output will rise by 10% to 232,000 units. Exports are likely to remain low. The largest exporter right now is Toyota, which sells the Corolla into the ASEAN region. With OEMs already baulking at further investments to service the local market, total exports are unlikely to exceed 10,000 units in the near term.
