Page 24 - TTG-Taiwan Transportation Equipment Guide (TTG)2022-04 Edition

22
Industry News

Taiwan must seize opportunities in 2022 ize opportunities in 2022
Taiwan must se

and be
and beyond in auto parts and EV yond in auto parts and EV

By Stephanie Chao

Editor’s Notes: forecasted ahead for 2022 show it would be diffi cult
As the past two years have shown, the for the market to exceed pre-pandemic levels. For
overall discussion of climate change, policies, context, the global light vehicle market surpassed
and improving technologies have spearheaded 90 million units between 2016 to 2018, while
transformations in the automobile industry, namely slowing slightly in 2019.
by the increasing demand for electric vehicles
(EV). In this year’s April edition of the Taiwan The automotive sector is not a stranger to
Transportation Equipment Guide (TTG), we are a market geared towards stronger demand
formally introducing a section for automotive over supply, however, the chip shortages have
electronics, and more coverage for EV and related put automakers into a tight spot. Since Tesla
technologies. However, we have not forgotten our commercialized EV models, global brands had
roots in the auto parts and aftermarket (AM) sector; moved slowly to electrify their car fl eets, however,
we will continue to discuss how the changing times with them ramping up the pace and production for
will impact both the auto parts and EV industries, EVs in recent years, this would mean decreasing
and keep you, our dear readers, abreast of the support for ICE cars, and supply shortages have
latest news and trends. made repairs for on-road vehicles much more
difficult as well. Over the years, Tier 1 car brands
Sales for lightweight ICE vehicles and electric have looked to Taiwan’s OEM manufacturers to
vehicles had rebounded since the COVID-19 supplement production, and would continue to do
pandemic swept the world in 2020, despite so as ICE models are gradually phased out from
the semiconductor shortages, supply chain original factory production. This trend will directly
congestions, and closed economies resulting in lend to Taiwan’s AM capacity, which is the focus of
general disruptions to the industry. According to Taiwanese manufacturers.
GlobalData, estimates show that the global light
vehicle market for last year will total 79.9 million North America is still Taiwan’s biggest
units, just 5.5% ahead of 2020’s 75.7 million units, destination for AM parts, followed by Europe, as car
citing chip shortages and supply disruptions as the ownership and foreign vehicle exports have steadily
main factor that contributed to the unmet, underlying risen. While there are domestic AM suppliers based
market demand. However, fi gures in 2021 and that in Europe, Market Prospect’s pointed out that they