Taiwan’s auto parts and accessories prices rose between 10 percent and 15 percent in the first quarter amid rising raw material costs and the NT dollar’s appreciation, local manufacturers said yesterday.
Changhua County-based DEPO Auto Parts Industrial Co (帝寶工業), which specializes in manufacturing automotive lighting products, said that rising material costs and the local currency’s strength had taken a 20 percent bite into its profit margins. DEPO mainly sells its products to the US and Europe.
“DEPO has gradually adjusted its prices by between 10 percent and 15 percent since the first quarter of this year,” said Tony Wang (王侑文), section chief of DEPO’s Middle East Africa area, on the sidelines of the 2008 International Auto Parts and Accessories Show (AMPA) in Taipei.
Another major Taiwanese major automotive lighting equipment manufacturer, TYC Brother Industrial Co (堤維西交通工業), agreed.
Eldon Lin (林慶良), assistant general manager of TYC’s aftermarket sales department, said the company would have to increase 10 percent of its sales to cover the rising costs of raw materials, primarily cardboards and plastics.
The Tainan-based company lost more than NT$100 million (US$3.28 million) in the first quarter as a result of the NT dollar’s recent appreciation, he said.
Soaring international crude oil prices also raised TYC’s transportation costs by 5.7 percent from US$3,500 per cargo at the end of last year, to US$3,700 at present, Lin said.
Taoyuan County-based Gordon Auto Body Parts Co (耿鼎企業), one of the biggest manufacturers of metal replacement crash parts in the world, said it had been hit hard by the rising cost of iron sand, which had surged 65 percent.
Gordon said that as the US subprime crisis was expected to continue affecting domestic consumption, it was only aiming for stable growth this year.
The four-day 2008 International Auto Parts and Accessories Show opened yesterday at the newly built Taipei World Trade Center Nangang Exhibition Hall.
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