Now Available: Taiwan Autos Report Q4 2012

New Transportation research report from Business Monitor International is now available from Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 07 January 2013

Taiwan's domestic auto market is set for a slight slowdown in sales growth during 2012, as global economic conditions begin to impact on consumer sentiment in the country. BMI predicts that 2012 will see total sales grow by 5.3% y-o-y in 2012 to 305,542 units - down from the 14.9% sales growth seen in 2011. Despite this temporary slowdown, we anticipate that sales will quickly return to double-digit growth, staying above 10% in the 2013-2015 period before falling again to 8.3% in 2016. Assuming the global economic situation does not deteriorate significantly, Taiwan will continue to be an important market for Asian car firms.

The picture is similar for Taiwanese auto production. BMI predicts that production will drop by just under 2% in 2012 compared with 2011, before production growth recovers to average around 7% for the remainder of our forecast period, until 2016. In 2012 we expect 324,827 vehicles to be produced, many of these for sale domestically and on the Chinese market, though exports will remain limited at 36,358 units for 2012 - down 2.2% y-o-y. Imports are expected to stay steady at just over 72,000 for 2012, almost identical to 2011's total. In both cases, however, future growth is expected as Taiwanese firms find new markets and as Taiwanese consumers become more interested in purchasing foreign models.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/504076_taiwan_autos_report_q4_2012.aspx) (http://www.fastmr.com/prod/504076_taiwan_autos_report_q4_2012.aspx)

Revenues for Taiwanese carmakers dropped in August 2012, according to reports from the China Economic News Service. This is not unusual, however, as the regular period of low demand known as the 'Chinese Ghost Month' (where consumers traditionally avoid making big purchases) has been compounded by the high sales seen in August 2011 due to the effects of the Japanese earthquake in 2011. This created an unusually high reference point for comparison this year. Yulon Nissan has reported that revenue dropped 18% y-o-y in August to TWD1.8bn (US$6mn). This drop in revenue occurred despite 9% growth in car sales, a fact attributed by the company to the early delivery of models to dealers in July. Taiwan's two other, smaller, carmakers Hotai and Sanyang did not see a drop in revenue during August, but enjoyed 5% and 4% growth in revenue respectively. Industry figures expect September to see demand and revenue pick up once again.

Taiwanese automakers could pay the price for growing political tensions between Japan and China, according to national news agency Focus Taiwan. The involvement of Yulon, a local firm, in China, under the Japanese Nissan brand may harm their prospects. Japanese auto brands have become a target of nationalist protestors who object to Japan's ownership of the Diaoyutai islands (or Senkaku, in Japanese). Currently 77% of the pre-tax profit of Yulon is from three joint ventures with Chinese firm Dongfeng. While sales have not dropped, the company has suspended its Nissan marketing campaigns in China in response to the political dispute.

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