Page 34 - TTG-Taiwan Transportation Equipment Guide 2025-04 Edition

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Industry News

Taiwan’s Auto Parts Power a New Era

in Global Automotive Trends

By Andrew Hsu
Steady Growth high base period, the sector is still poised for steady
Amid Shifting Global Markets expansion. Structural shifts in the global automotive
industry continue to create favorable conditions for
Taiwan’s automotive parts industry is Taiwan’s auto parts market, supporting sustained
experiencing strong growth, driven by shifts in the growth.
global economy and evolving industry dynamics.
According to the Industrial Technology Research On the export front, the United States remains
Institute (ITRI), the sector is projected to expand Taiwan’s largest market, accounting for more than
by 3.4% in 2024. Meanwhile, the rising adoption 50% of total export value. Key export products
of electric vehicles (EVs) and advancements in include automotive lamps, electrical components,
autonomous driving technology are set to fuel a new tires, transmission system parts, and crash-related
wave of opportunities in the automotive electronics components. Other major export destinations
market. include Japan, Mexico, Germany, and the United
Kingdom.
According to the Industrial Economics
and Knowledge Center (IEK) of the Industrial China, once Taiwan’s second-largest export
Technology Research Institute (ITRI), Taiwan's market for automotive components, has seen a
automotive components industry has experienced steady decline in recent years due to the ongoing
significant growth since the onset of the COVID-19 U.S.-China trade war and shifting supply chain
pandemic in 2020. Supply chain disruptions and dynamics. From January to August 2024, Taiwan’s
high inflation have reshaped the market and altered exports to China dropped to sixth place in the
consumer behavior, driving demand for automotive rankings.
components. As a result, Taiwan's automotive
components sales reached NT$243.6 billion in Electrification Sparks
2023. an Automotive Electronics Surge

Moving forward, while the growth of Taiwan’s Meanwhile, advancements in smart vehicle
auto parts industry is expected to slow due to a technology and breakthroughs in electrification