Hota Industrial Manufacturing Co (和大工業), the nation’s leading automotive components maker, yesterday reported sales of NT$572 million (US$19 million) for last month, an 11.74 percent increase from the same period last year, sending its aggregate sales in the first five months of this year up 17.66 percent annually to NT$2.84 billion.
The strong performance was due to rising demand from Hota’s major customers, such as tier-one automotive parts supplier BorgWarner Inc and electric car maker Tesla Inc, Hota said in a filing with the Taiwan Stock Exchange.
Hota, which makes gears and shafts for vehicles, said an ongoing capacity expansion project — which aims to improve manufacturing efficiency through “smart” production lines — has begun to bear fruit.
Two new automated and “intelligent” production lines at its Chiayi County plant, which began operations in the fourth quarter of last year, have started to contribute to revenue this year, Hota said.
Earlier this year, the company said that reduction gears for Tesla’s Model 3 would be produced at dedicated lines in its automated factory, which should result in better efficiency and yields.
Overall, the company plans to launch five more automated and intelligent production lines by the end of this year, Hota said.
In light of expanded capacity and sustained customer demand, the company said it has set an annual sales target of NT$10 billion for next year, compared with last year’s NT$5.78 billion, as the new lines would contribute significantly next year.
The company did not provide a sales target for this year.
Another of the nation’s leading automotive parts suppliers, Tong Yang Industry Co (東陽實業), also saw revenue grow last month.
Tong Yang, which supplies automotive metal sheets and bumpers to global brands, posted revenue of NT$1.95 billion, a 4 percent increase from April, but a 4.6 percent decline from the same period last year.
Cumulative sales for the first five months of the year reached NT$1.24 billion, remaining flat from a year earlier, the company said in a statement.
Tong Yang provided a bright outlook for its original equipment manufacturing business, as its Chinese customers are scheduled to launch new car models in the second half of this year.
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