Page 30 - TTG-Taiwan Transportation Equipment Guide 2025-09 Edition

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Industry News

By Andrew HsuHsu
By Andrew

Taiwanese Makers of AM-based aiwanese Makers of AM-based
T

A
Auto Parts Feel Bright About Global uto Parts Feel Bright About Global
Mar
Market Despite Uncertaintyket Despite Uncertainty

There are many reasons that cause the Manufacturers’ Association and the Ministry of
optimistic vibes among Taiwanese manufacturers of Economic Affairs. Europe came next, with an
AM-based (aftermarket-based) auto parts despite estimated, 18.50% of the Taiwan exports; followed
uncertain outlook for global economy due chiefly by Japan’s 5.28%; Mexico’s 3.70% and Australia’s
to the Trump Administration’s reciprocal tariffs 2.72%.
on almost all of the United States’ trade partners
throughout the world. Also data from the two Taiwan organizations
show that from 2022 to 2024, the Taiwan exports
The Trump Administration’s 25% tax levy on amounted to NT$253 billion (US$8.43 billion),
imported automobiles and certain automobile NT$225.4 billion (US$7.5 billion), and NT$228.5
parts, Taiwan’s auto-parts insiders note, would billion (US$7.6 billion), respectively. The two
push up the cost for new cars by at least 12.5%, or organizations point out that although the exports
US$3,000 per vehicle, whether the cars are built dropped in 2023 year on year, the 1.4% increase
Stateside or imported from overseas. Importers year on year in 2024 suggested the global market
will face a 25% more cost while carmakers moving for AM parts was recovering and the Taiwanese
production lines to the U.S. soil to avoid the levies manufacturers were still firmly holding unmatched
will tackle with the generally higher land, labor positions in the global market.
and infrastructure costs in America than in other
countries. Taiwanese Auto-Parts Makers Develop
Global Presences to Maintain Competitive-
Higher Cost Poses Potential Business to ness
Aftermarket Parts
To cope with the ever-changing international
Higher costs would, in return, dampen American trade environments and supply chain adjustments,
consumers’ willingness to trade in their current Taiwanese auto-parts makers have been actively
cars for new models, pushing the consumers building their global presences to maintain
towards choosing to maintain and repair their competitiveness. For instance, the Tong Yang
current vehicles as much as possible with AM parts. Group, currently Taiwan’s No.1 body-parts maker,
Taiwan’s industry insiders estimate the running has operated production facilities in Texas for over
automobiles in North America have served an 30 years; Hushan Autoparts Inc., a leading door-
average 12.6 years and over 110 million of the handle maker, has opened factories in Vietnam and
vehicles are needing maintenance and repairs. the United States; and radiator maker Cryomax
Cooling System Corp. has set up production lines
By region breakdown, America remains the in Mexico. World Known Precision Industry Co.,
largest export market for Taiwan’s AM-based auto Ltd, currently Taiwan’s No. 1 maker of commercial-
parts and accessories, accounting for 50.63% of vehicle parts, is constructing a production facility
the total Taiwan exports of NT$228.5 billion (US$7.6 in America for US$4 million to meet American
billion at US$1:NT$30) in 2024 alone, according customers’ need after opening a warehouse.
to data compiled by Taiwan Transportation Vehicle