Page 29 - TTG-Taiwan Transportation Equipment Guide (TTG)2022-04 Edition

27
Industry Trends

Ch
Change on the menu for automotive ange on the menu for automotive

trends, yet disrupted supply chains pose ds, yet disrupted supply chains pose
tren

challe
challengesnges

By Stephanie Chao
After two years of the COVID-19 pandemic these areas as well. Expect more and more AM
and the world grappling with Russia’s invasion of alternatives to the normally-pricey EV or in markets
Ukraine that began on February 24, supply chain like Taiwan, electric scooters, as the consumer base
disruptions that have derailed many industries are using these transportation methods increases.
forecasted to continue well into 2022, amid a myriad
of trends and problems. In this section, we discuss Auto parts suppliers are cognizant regarding
industry trends in three main areas. the status of the world’s automotive and overall
industry situation. There is not another moment
Auto Parts in Demand Amid Shortages in recent decades where the consistent supply
of auto parts is more crucial than ever. For
Auto parts, or more specifi cally, aftermarket (AM) example, due to congested supply chains and
parts, have seen a strong surge in demand. Industry shipping ports, auto parts and components have
Research reports that the global automotive been in more demand in markets around the
parts and components market size is expected to world, as consumers are holding onto their older
reach USD$2258.72 billion by 2027. According to vehicles longer than purchasing new vehicles.
LinchpinSEO, the U.S. auto AM, Taiwan’s biggest In parts of the world that are heavily reliant
export destination market, captured USD$16 billion on long-distance trucking shipping, shipping
in market share through eCommerce in 2020, companies are unable to maintain pre-disrupted
marking nearly a USD$2 billion increase over initial fleet levels as they are unable to service trucks
forecasts for the year. without the necessary components. New trucks
are not arriving either, worsening the situation.
The pandemic had spurred consumers to take
to online shopping as in-person shops posed Automotive Electronics and EV
health risks due to social gatherings. Tighter reins
on money also propelled consumers to delay Unfortunately, the Russia-Ukraine conflict has
purchasing new vehicles, and opt for extending the upended what should have been a global economic
lifespan of their existing owned cars instead. recovery, worsening the overall situation amid rising
prices in raw materials, unstable shipping prices
As electric vehicle (EV) ownership is becoming and markets, and a recovering supply chain. Amid
more and more popular in markets around the these raw materials include nickel, in which early
world, auto parts and AM auto part suppliers are March, the nickel market saw so much instability
also looking to increase their market presence in that the LME suspended trading due to price