After hitting a bump on the road last year, the local automotive market is expected to recover slightly this year, industry watchers said yesterday.
"The auto market will see an improvement from last year, but the upside will not be huge," said Sam Wu (
Wu said that the negative factors which dragged car sales to the bottom last year would no longer be in effect this year.
For instance, there will only be one Ghost Month, instead of the two we had last year, which affected sales of big-ticket items, he said.
Consumer confidence
The impact of the credit and cash card debts, which plagued the nation last year, would also gradually fade this year, allowing consumer confidence and spending to rise, Wu said.
Figures released by the Ministry of Transportation and Communications yesterday showed that local car sales plunged 29 percent to 366,311 units last year.
Ford Lio Ho Motor Co (福特六和), the nation's fourth-biggest automaker, was the hardest hit, posting a 45 percent decline to 30,212 units during the period.
Sales of Yulon Nissan Motor Co (
The top two makers -- Hotai Motor Co (和泰汽車) and China Motor Corp (中華汽車) -- reported declines of 28 percent and 35 percent, to 107,462 units and 55,894 units, respectively, the data showed.
Soft pick-up
Wu said that the market this year should pick up 6.5 percent and exceed 390,000 units, a figure echoed by other car makers.
Steven Yang (
Smaller rivals Yulon Nissan is aiming for a 15 percent increase in auto sales, while China Motor is targeting a 10 percent rise in vehicle sales.
Given a limited domestic market, automakers are expected to speed up their pace in deployment across the Strait, as well as in exporting cars to overseas markets,Wu said.
Tough competition
"It is a must for automakers to move into China's rapidly growing market. But there are just too many brands and too many new car launches there, which will eat into local makers' profitability," he said.
Ventures of Taiwanese firms in China would only see better profitability after the industry undergoes consolidation, the analyst said.
Meanwhile, China Motor announced on Monday that Chinese authorities had approved the establishment of its second joint venture across the strait, known as DaimlerChrysler Vans (China) Ltd (DCVC).
With a planned investment of 200 million euros (US$260 million), DCVC will focus on supplying Vito/Viano luxury multi-purpose vehicles and Sprinter commercial trucks.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01