The production value of the local auto industry in the first half of this year rose 7 percent annually to NT$247.1 billion (US$7.75 billion) despite economic headwinds, the Ministry of Economic Affairs said yesterday.
The output of the local auto industry was mainly supported by automakers and parts suppliers, which contributed 45.2 percent and 53.5 percent respectively in the first six months, with the remaining 1.3 percent from body producers, the ministry said in a report.
In the January-to-June period, production value of automakers grew 16.2 percent from a year earlier to NT$111.7 billion, with passenger vehicles making up 55.1 percent of total production, while trucks contributed 21.7 percent, the report said.
Photo: CNA
The ministry said that local automakers often work with foreign brands to assemble vehicles and produce key components in Taiwan after obtaining authorization.
Nearly 90 percent of vehicles made in Taiwan are bought domestically, while overseas shipments are mainly for the Middle East market, it added.
Last year, the production value of Taiwanese automakers rose 2.2 percent from a year earlier to NT$208.3 billion, growing for the third straight year, the report showed.
Unlike automakers, auto parts suppliers deliver most of their products abroad, with the US, Europe and Japan comprising the three largest markets, which are mainly focused on after-sales business, the ministry said.
The output of auto parts suppliers has exceeded that of automakers for 10 consecutive years since 2013, it said.
Last year, the production value generated by Taiwanese auto parts makers rose 5.8 percent from a year earlier to NT$272.3 billion, it said.
However, the production value of auto parts makers rose just 0.3 percent year-on-year to NT$132.2 billion in the first half of this year, which the ministry attributed largely to inventory adjustments by buyers in the US and Europe.
The latest ministry data showed that destocking at foreign customers caused Taiwan’s auto parts exports to plummet 28.1 percent year-on-year to US$3.55 billion in the first seven months of this year, with those bound for the US dropping the most by 39.6 percent, followed by declines of 9.1 percent to Europe and 6 percent to Japan.
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