- Translated speech transcript of Fu-Hsiong Chen, vice-chairman of Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) at the 4-in-1 Mega Show
TAIPEI, Taiwan, 9 April 2014 —-– The 30th Taipei International Auto Parts & Accessories Show (Taipei AMPA), the 9th Taipei International Automobile Electronics Show (AutoTronics Taipei), the 9th Taiwan International Motorcycle Show (Motorcycle Taiwan) and the 4th Taiwan International Electric Vehicle Show (EV Taiwan), these four trade shows are organised simultaneously in the Nangang Exhibition Hall and Exhibition Hall 1 of the Taipei World Trade Centre (TWTC). These shows represent a unique professional purchasing platform which one-of-its-kind in Asia, and focuses on cars and motorcycles, automobile electronics, and electro vehicles and components making it one of the largest and most diverse automobile shows in Asia.
As passive automotive components must conform to stringent regulatory standards, there is a high expectation on material quality. These products must be suited for various extreme weather and environmental conditions. Hence, the technical barriers of such products are high, and the period of product testing is comparatively high. With years of hard work, Taiwan’s automotive electronics have gained global admiration in terms of technology and product quality. As the automotive industry moves towards smart electronics trends, the ratio of related automotive electronics applications will increase by 40 percent in the future. The global output value of automotive electronics in 2013 was approximately US$197.5 billion and is expected to increase to US$238.8 billion in 2015.The industry’s greatest potential lies in driving information, safety assistance and automotive body electronics. With the rise of the automotive industry in ASEAN emerging markets, many countries are focusing on the development of energy-efficient automobiles. Taiwan companies have also gradually entered the international automotive supply chain, which shows that they have the capability of switching from consumer-based hardware and service to vehicle information and communication services.
In 2013, Taiwan’s automotive electronics output value was approximately NTD133.9 billion, an increase of 12 percent compared to 2012’s NTD111.6 billion. This increase shows that Taiwan’s domestic market has increased, with domestic cars driving the growth of automotive electronics products. Also, driver assistance systems, such as car video systems, blind spot detection, lane departure, parking assistance system and automotive LED systems, are other important development paths of automotive electronics in the future. These systems have gradually become the basic accessories of imported cars in the OES or AM market. Taiwan’s electric car companies should seize this opportunity to develop such products.
In terms of the export market, the Taiwanese automotive industry and production have already expanded across the world. More than 80,000 Toyota cars were exported to the Middle East, Yulon was exported to Russia through China, and tyre pressure sensors and reverse sensors were exported to North America. On top of that, China’s policy imposed on buses and dangerous goods trucks*, as well as their active promotion of the new energy vehicle industry, has spurred the development of automotive electronic products such as vehicle dynamics management and vehicle information services. As such, Taiwan should seize this opportunity to enter the Chinese market and create business opportunities.
In the future, automotive electronics will still focus upon safety, smart technology and energy conservation. Taiwanese companies can make use of their strengths in IT experience, strong production capability and flexible manufacturing systems, and research on vehicle telematics, multi-media, semi-conductor technology, software development, GPS, and wireless transmission to grasp the large automotive electronics market and business opportunities. Entering the OEM market when the time is ripe will surely take the Taiwan’ automotive electronics industry to new heights after the brief period of thin profits.
Also, in response to global trends of energy efficiency and carbon reduction, electric vehicles are still a key development target. The government has been actively promoting the development of the electric vehicle industry and lists it as one of the important governance projects. In terms of the domestic electric vehicle industry, besides vehicle assembly, the importance of the development of supporting industries for electric vehicles, such as chassis, battery packs, electric motors, and charging facilities, should not be overlooked. Taiwan is equipped with strong electrical and electronics technology, and holds an important position in the world’s overall production supply chain of electric vehicle. By 2015, our total production of electric vehicle is estimated to reach 60,000, and total output value will reach NTD120 billion. The future of the industry looks ever more promising.
The Chinese market also presents opportunities for Taiwanese electric vehicle companies. Fifteen public buses are required for every 10,000 people living in Chinese urban areas, while nine buses are required for every 10,000 people living in rural areas. This represents a market size of 1.6 million buses. What’s more, the buses are replaced every eight years, and half of the public buses will be replaced by electric vehicles by 2020, representing a total of 80,000 electric vehicles. Taiwanese companies still have advantages in terms of transmission systems and battery and power systems. Therefore, Taiwanese companies can play a major role in the promotion of the electric vehicle industry across several provinces in China.
*Buses and dangerous goods trucks:
Buses: tourist buses and scheduled buses above category 3.
Dangerous goods trucks: dedicated vehicles for transport of dangerous chemicals, fireworks, and fireworks products for civilian use.
At the end of 2011, China implemented “buses and dangerous goods trucks” regulation and ordered buses, tour buses, and trucks transporting dangerous goods to install telematics systems with GPS in order to manage, monitor, and promptly report accidents.