Auto parts maker Tong Yang Industry Co (東陽實業) said it is to start producing brushless motors in August, aiming to meet rising demand for energy-efficient products.
Without using carbon powder, brushless motors reduce mechanical energy loss and save more electricity than brushed motors, the company said.
“We will introduce the new products to our customers from the US and Europe to gauge market reaction before disclosing a capacity target,” a company official told reporters at the Taipei International Auto Parts & Accessories Show.
The company said it is conducting more research into its active grill shutters, which lower wind resistance and save more energy than traditional grilles.
Tong Yang has begun making active grill shutters for Jeep’s Cherokee vehicles, it said.
The auto parts maker is also planning to improve its manufacturing processes with waterborne coating technologies this year, due to increasing customer awareness of eco-friendly products.
The company is to finish the construction of 25 waterborne coating equipment production lines by the end of the year, replacing some of its oil-based coating production lines.
The improvement in manufacturing is expected to help the company win more orders from European customers, as waterborne coated bumpers meet the higher environmental standards required there.
The Tainan-based company’s five factories in Taiwan are able to produce about 9 million bumpers for aftermarket channels per year, company data showed.
Asked about its original-equipment manufacturing business, Tong Yang said it plans to increase its presence in China’s new-energy vehicle market, adding that it is in talks with several Chinese companies about further collaborations.
Despite an optimistic sales forecast buoyed by new products, the company expressed concerns that foreign-exchange fluctuation might drag its profitability this year.
The company posted pre-tax profit of NT$647 million (US$21.27 million) in the first quarter, representing a 17 percent decline from the same period last year, primarily due to foreign-exchange losses of more than NT$200 million.
That translated into pre-tax earnings per share of NT$1.03, compared with NT$1.23 per share in the same period last year.
From January through last month, accumulative revenue edged up 0.62 percent from NT$5.96 billion to NT$6 billion, according to a company statement.