Shares of three major units of automaker Yulon Group (裕隆集團) outperformed the broader market yesterday on a report that the group had overtaken Hotai Motor Co (和泰汽車) as the largest car vendor in Taiwan during the first three weeks of this month.
Yulon Motor Co (裕隆汽車) closed up 2.23 percent to NT$59.70, Yulon Nissan Motor Co (裕隆日產) gained 1.48 percent to NT$137.50 and China Motor Corp (中華汽車) added 1.03 percent to NT$29.30, while the TAIEX closed down 0.05 percent at 8,866.35.
The Chinese-language Economic Daily News reported yesterday that Yulon Group sold 7,851 units, including its upscale Luxgen brand, from Dec. 1 to Thursday last week, or a 31.6 percent share of the local car market during that period.
According to the report, Yulon’s sales sent it past perennial market leader Hotai Motor, which sold 6,029 vehicles for a 27.8 percent market share.
Hotai Motor is the Taiwanese distributor of Japanese car maker Toyota Motor Corp.
“It is the first time Yulon has taken first place in the local auto market,” MasterLink Securities Corp (元富證券) analyst Tom Tang said, attributing Yulon’s larger market share largely to sales of the popular upscale Luxgen multi-purpose vehicle (MPV) and sports utility vehicle (SUV) models at a time when the local economy is staging a strong rebound.
Market observers said sales of Luxgen models in Taiwan are expected to exceed 10,000 units this year and reach 16,000 units next year. Investors have high hopes that the Luxgen brand will generate significant revenues for Yulon Group in China, Tang said.
Yulon Motor and China’s Dongfeng Motor Corp (東風汽車) have set up a joint venture in Hangzhou, China, to produce Luxgen models for the China market.