Auto parts maker Tong Yang Group (東陽事業集團) expects business to be flat this year despite mild growth in the aftermarket sector, a top executive said yesterday.
Tong Yang reported revenue of NT$5.31 billion (US$172 million) last quarter, down 14.98 percent from a year earlier.
Company president Wu Yung-hsiang (吳永祥) said that the loss was due to weak demand in China.
Aftermarket products account for 70 percent of total revenue, the company said, adding that this year it would invest NT$2 billion in developing new automotive aftermarket products.
Last year, Tong Yang began developing a water-based coating for its plastic automobile products, which this year was used in 60 percent of its aftermarket products, Wu said.
Tong Yang is the first company in the world to use such a coating, he said, adding that the water-based coating’s yield rate and abrasion resistance are better than oil-based coatings.
Tong Yang is also focusing on developing light-weight hoods for automobiles and electroplating products, and has earned patents for motors, the company said.
Tong Yang has announced plans to move some of its production back to Taiwan from China to avoid heavy tariffs imposed by Washington on Chinese exports.
In related news, the Taipei International Auto Parts and Accessories Show yesterday opened in halls 1 and 2 of the Taipei Nangang Exhibition Center, with companies from 14 nations displaying auto parts, self-driving vehicles, and driver assistance and safety applications.
The show features 1,340 companies with 3,750 booths, the Taiwan External Trade Development Council (外貿協會) said.
Winner Yu (游文光), automotive electronics chairman of the Taiwan Electrical and Electronic Manufacturers’ Association, said that electric and self-driving vehicles are an irreversible trend.
Auto parts companies should take advantage of Taiwan’s leadership in the technology sector by designing and manufacturing semiconductors for use in vehicle cameras and sensors, he added.
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