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Industry News
The Auto Component Market in
Taiwan 2020
By Huang Wei-shiou
According to the survey data released by ITRI’s The spread of the pneumonia epidemic has not
Industrial Economics and Knowledge Center, there are only led to a further slump of the Chinese auto market
currently about 86,000 employees in the automotive but also the halt of production. Market analysis
parts industry in Taiwan, and 2,549 component generally believes that in recent years there is little
manufacturers, including about 300 original equipment hope of the auto market’s recovery. Bloomberg News
manufacturers and 200 companies with factories in cited a study that pointed out that if the auto industry is
China. Due to the China-U.S. Trade War in 2018, it halted until mid-March, many major car manufacturers
severely impacted the automotive supply chain around such as GM, Nissan, Honda, Renault, Hyundai,
the world. Although Taiwan is also an important part Daimler, and even electric car Tesla, will likely see
of the international supply chain, Taiwanese firms overall production fall 32%, more than expected.
are reducing their dependence on China-based CNN also reported that the epidemic not only hit the
manufacturing facilities since last year. Coinciding with auto market, but also severely damaged the global
President Tsai Ing-wen’s reshoring initiative, some supply chain, and will further derail the auto production
of the Taiwanese manufacturers have moved their system. However, most Taiwanese factories have a
factories to Taiwan. Last year, the export value in the low revenue share in mainland China, therefore the
first eleven months reached NT$196 billion. impact of the epidemic on Taiwanese factories is
limited.
Covid-19 Spreading Through the Auto In-
dustry Taiwan’s Auto Parts Industry is Sought-
After Globally
Wuhan, in Hubei Province where the viral outbreak
began, is one of the major auto production hubs in Expecting a continuing growth in Taiwan, Japanese
China, hosting production facilities for several major car manufacturer Isuzu Motors Ltd, will build its
domestic and international manufacturers such as first overseas manufacturing base for eco-friendly
Honda, Nissan, Renault, and General Motors, along commercial vehicles in Taichung City, with a multi-
with many auto parts suppliers. Before the outbreak, billion New Taiwan dollar investment, and is slated to
there was a sharp slowdown in the Chinese auto create 200 high-end jobs. According to the company,
market. By 2019, auto sales in China fell for a second operations will begin in 2021, with a research and
consecutive year in 2019 and to the lowest in five development center also to be established in the
years. future. As Japan’s top truck maker, Isuzu produces a
