The production value of Taiwan’s auto industry is expected to continue growing this year amid an improving global economy, a local research center forecast on Tuesday.
The output of the local auto sector including motorcycles is likely to grow by between 2.3 and 3.5 percent this year, Industrial Economics and Knowledge Research Center manager Annie Shih (石育賢) said.
“After a gloomy 2013, the auto sector is expected to perform better this year amid a warming consumption market,” Shih said at a press conference in Taipei.
The automobile sector is expected to increase by 3.7 to 4.5 percent of the year, while the motorcycle sector could grow by 2.3 to 3.5 percent, she said.
Taiwan’s auto sector output was estimated at NT$236 billion (US$7.8 billion) last year, up 1.9 percent from a year earlier, the government-funded center said.
Taiwan Transportation Vehicle Manufacturers Association (台灣區車輛工業同業公會) director Hwang Wen-fang (黃文芳) cautioned against being “just a colony industry manufacturing for other brands” and urged local branding and promotion.
Taiwan should aim at overseas markets, he said, as the auto industry “is a game of economic scale” and Taiwan’s market is too small for manufacturers to survive on alone.
Hwang suggested China, saying Taiwan can “negotiate well with China” based on the Economic Cooperation Framework Agreement.