Automotive industry
The automobile industry is a technology- and capital-intensive industry. Its industrial chain is quite large and affects a wide range of related industries. An automobile is composed of more than 30,000 parts, covering steel, plastics, rubber, glass, machinery, motors, electronics, Services and other different industries, and related professional talents include R&D, manufacturing, procurement, marketing, management, warranty and other skills, thus integrating a complete automotive industry, so the automotive industry is known as the "locomotive industry".
The upstream of the automotive industry is mainly related component manufacturers, the midstream is the center of vehicle manufacturing, assembly, repair and technical services, and the downstream is brand manufacturers and sales and service bases.
1. Upstream
There are many upstream parts of the automotive industry, mainly the production of components, including casting, stamping, forging, machining and heat treatment and other procedures. Products include car lights, tires, sheet metal, aluminum alloy steel rims, hoods, bumpers, etc. The internal relevance and influence level are very large. Due to the complexity of automobile manufacturing and assembly processes, more than 30,000 parts are required. After the components have passed the quality inspection, they are sent to the central factory for assembly. Therefore, the component manufacturers and the vehicle central factory are formed The central satellite factory system has a long-term and stable cooperative relationship, and each vehicle central factory will be vertically integrated with varying degrees of upwards, middle and downstream.
In the early stage, Taiwan's automobile component factories mostly started with locomotive components. Later, due to the government's implementation of the self-made rate method, the automobile center field sought suitable factories in the country for component development. Because Taiwan's automobile industry is affected by factors that are difficult to break through in the small domestic market, most automobile component manufacturers, such as car lights, bumpers, rubber and plastics, are developing after-sales service products. Auto parts and components can be divided into "out-of-the-box original car parts" and "after-sales repair parts"; "out-of-the-box original car parts" can be divided into original factory commissioned manufacturing (OEM) and original factory commissioned design and manufacturing (ODM); "Maintenance parts" can be further divided into original factory parts (OES) and non-genuine factory parts (AM). Non-genuine factory parts are usually supplied for maintenance and modification, and Taiwan's component manufacturers mostly focus on the AM market.
Because Taiwan's automotive component manufacturers are mostly small and medium-sized enterprises, and there are many manufacturers, and Taiwan’s domestic demand market is limited, the component market is mostly exported as the development focus; and in recent years, Taiwanese automotive component manufacturers have gradually begun to enter the price-differentiated market. , Investing in overseas factories and cooperating with large international automakers, and gradually transforming into the original market. With cars gradually becoming smarter, cleaner and electrified, business opportunities for auto parts manufacturers are gradually emerging, such as car lights. The market share of the output value of, bumpers, sheet metal, and molds is almost the first in the world, and the global market share is as high as 80% to 90%, showing the competitive advantage of Taiwanese manufacturers.
2. Midstream
The middle reaches of the automotive industry are the central assembly plant. The process of assembling cars in the central plant includes body welding, painting, pre-assembly of some parts and components, and finally the assembly of the entire vehicle. The automaker outsources the parts and components to the first-class satellite factory, and the first-class satellite factory subcontracts the detailed parts to the second and third-class satellite factories to form a multi-level division of labor structure. The central factory integrates long-term cooperation upstream component manufacturers and satellites The factory immediately provides the complete vehicles, parts and technical services required by the downstream sales end, so that the downstream sales companies can reduce the related costs of self-prepared inventory and reduce operating risks. A complete car must pass various inspections and test standards under different conditions before it leaves the factory. Only after it is confirmed that it is qualified can a safe and reliable car be considered as completed. At present, domestic automakers are mainly distributed in Taozhu seedlings and Pingtung; while the auto parts industry is distributed in Taozhu seedlings and Tainan.
In the early days of domestic autos, due to their immature technology, automakers signed technical cooperation with foreign automakers. Most of the parts and components were imported and assembled in bulk. Later, domestic automakers set up one after another and began to introduce production technologies for seats, suspensions, and transmission system components. And because domestic casting, stamping, forging and other technologies are becoming mature, brakes, instruments, and steering systems have reached the goal of localization. The domestic production rate of parts has gradually reached 70%. However, due to the small domestic market, manufacturers are turning to develop key components and components. Expansion of the export market; after joining the WTO in 2002, manufacturers have actively joined the global division of labor. Automobiles have begun to try to export to Southeast Asia (complete vehicles and completely disassembled and imported to assemble CKD), and operate the Chinese mainland market. Through the cross-strait division of labor, Taiwan's technological energy is imported into mainland China to gain the scale benefits of mass production.
In recent years, Taiwanese manufacturers have been exported to Europe and the United States for many years due to their excellent parts design and manufacturing capabilities, good factory management capabilities, and flexible production. Domestic manufacturers have been able to master a complete automotive supply chain. There are Taiwanese manufacturers with advantages in the ICT electronics industry. The overall domestic automotive electronics output value reached NT$160 billion, while the component output value In showing an important milestone in the development of Taiwan's automobile industry, it has further enhanced the position of Taiwan's component manufacturers in the automotive supply chain.
3. Downstream
The downstream of the automotive industry is vehicle sales and after-sales services. Many domestic automakers have technical cooperation parent plants, so they all have a complete supply chain to meet the market's demand for different models. Yulon Motor’s main technical cooperation partners are Japan’s Nissan, and Thai Motors is the agent dealer of Toyota of Japan in Taiwan, China Motors has signed a technical cooperation contract with Mitsubishi, and Sanyang Industrial has switched to technical cooperation with Hyundai Motor of South Korea after terminating its technical cooperation with Honda. Domestic car manufacturers have many dealerships to sell their own brand cars. Most of the vehicles sold are commercial vehicles, medium and small sedans, and recreational/commercial vans. At present, most of them are mainly in Taiwan. The export market of automakers is also expanding year by year, but the domestic auto market is currently saturated. Imported cars have also become more competitive due to factors such as reduced excise taxes and tariffs after joining the WTO. Therefore, the domestic automobile industry is specialized in manufacturing and selling multi-brands, and strives to improve the manufacturing quality, cost, delivery time and service satisfaction of each brand. Exclusive customized service and after-sales service for each brand.
Currently, the world's top three auto markets are ranked by mainland China, the United States and Japan, and India has surpassed Germany in 2017 to become the world's fourth largest auto market. Global car sales in 2017 may exceed 90 million vehicles, an increase of 2.7% from 2016, of which the Chinese market accounts for more than a quarter, indicating that the demand for traditional cars is still strong. The reason is the continued rebound in demand in the Western European market, as well as Brazil and Russia. Waiting for the recovery of demand in emerging markets, emerging markets have long been the main growth driver for global car sales. Emerging market sales have accounted for more than half of global sales since 2010, and Asian car buyers are the main reason for overall car sales growth, especially in China since 2009. It started as the world’s largest automotive market.
According to statistics, the top three automobile groups in global sales in the first October of 2017 are Volkswagen Group, Toyota Group and Renault-Nissan Alliance, with global sales of more than 8 million vehicles.
The cumulative sales of the domestic auto market in 2017 reached 444,669 units, an increase of 1.1% compared to 439,629 units in 2016; while the new car market sold 5,040 more units than in 2016. The key to observing the changes in the auto market in 2017 is the acceleration of the SUV’s popularity in the market and the strong attack of imported cars. In recent years, there has been a wind of recreational vehicles around the world, and the growth rate is much higher than that of ordinary RVs. In 2017, the imported car market Sales of 185,581 vehicles, a growth rate of 8.9% compared with 2016, and a market share of 41.7%. It is not news that the domestic auto market has been eroded by imported cars, and the output value of Taiwan’s auto industry has gradually declined to only 2016. 190.6 billion yuan left.
After all, the completion of a new domestic car requires at least 3,000 sets of molds, but because of the low output, each mold needs to be spread for several years; on the other hand, as long as the imported car has a new model, the latest car can be introduced immediately; and It takes at least three years for domestically-produced cars to develop parts from the plan to open molds, develop parts with parts dealers, and produce them on the market. In recent years, due to the rapid development of the safety equipment of various car manufacturers around the world, such as lane deviation, blind spot detection systems, etc., Even six airbags have become standard. Compared with imported cars, domestically-made cars seem to be more expensive and incompletely equipped. In addition, after the government abolished the excise tax relief and import quotas for domestically-made cars, there is no relevant domestic automobile industry policy. This is a declining domestically-made car. The car market deserves the government to rethink and review.
At present, there are about 2,500 vehicle manufacturers in Taiwan. With the domestic production technology and product quality gradually gaining international recognition, automakers are gradually exporting and deploying their vehicles in global markets such as the Middle East, Russia, and the ASEAN, making breakthroughs and innovations. Taiwan has a complete automotive market. The component industry supply chain has formed a dense supply network of upstream, midstream, and downstream, coupled with excellent technical quality, and the world’s major automakers have also moved their component purchases to Asia and Mainland China. Taiwan has a convenient location, so in the future, Taiwan automakers will still Will have considerable competitive advantage.
With the emphasis on the Internet of Vehicles by major international manufacturers, it has led to the development of automotive intelligence. Through wireless communication technology, vehicle-related information is transmitted to the remote management platform, and the vehicle is used as a big data center, and navigation, entertainment, and information security are integrated. With the improvement of services such as, communications, and automobile performance, if Taiwanese manufacturers can speed up their pace, future business opportunities will be limitless.
Looking forward to 2018, the economy is gradually recovering, coupled with the benefits of interest rate hikes and tax cuts in the United States, it will definitely help the stock market rise and drive the overall consumer market; and the total number of domestic cars with more than 20 years of age will reach 920,000. It shows that there are still considerable potential car swap business opportunities in Taiwan's auto market, and with the advancement of driverless cars and in-vehicle system technology, the future business opportunities of the auto industry cannot be underestimated.
source:
Industry value chain information platform http://ic.tpex.org.tw/introduce.php?ic=3000
The automobile industry is a technology- and capital-intensive industry. Its industrial chain is quite large and affects a wide range of related industries. An automobile is composed of more than 30,000 parts, covering steel, plastics, rubber, glass, machinery, motors, electronics, Services and other different industries, and related professional talents include R&D, manufacturing, procurement, marketing, management, warranty and other skills, thus integrating a complete automotive industry, so the automotive industry is known as the "locomotive industry".
The upstream of the automotive industry is mainly related component manufacturers, the midstream is the center of vehicle manufacturing, assembly, repair and technical services, and the downstream is brand manufacturers and sales and service bases.
1. Upstream
There are many upstream parts of the automotive industry, mainly the production of components, including casting, stamping, forging, machining and heat treatment and other procedures. Products include car lights, tires, sheet metal, aluminum alloy steel rims, hoods, bumpers, etc. The internal relevance and influence level are very large. Due to the complexity of automobile manufacturing and assembly processes, more than 30,000 parts are required. After the components have passed the quality inspection, they are sent to the central factory for assembly. Therefore, the component manufacturers and the vehicle central factory are formed The central satellite factory system has a long-term and stable cooperative relationship, and each vehicle central factory will be vertically integrated with varying degrees of upwards, middle and downstream.
In the early stage, Taiwan's automobile component factories mostly started with locomotive components. Later, due to the government's implementation of the self-made rate method, the automobile center field sought suitable factories in the country for component development. Because Taiwan's automobile industry is affected by factors that are difficult to break through in the small domestic market, most automobile component manufacturers, such as car lights, bumpers, rubber and plastics, are developing after-sales service products. Auto parts and components can be divided into "out-of-the-box original car parts" and "after-sales repair parts"; "out-of-the-box original car parts" can be divided into original factory commissioned manufacturing (OEM) and original factory commissioned design and manufacturing (ODM); "Maintenance parts" can be further divided into original factory parts (OES) and non-genuine factory parts (AM). Non-genuine factory parts are usually supplied for maintenance and modification, and Taiwan's component manufacturers mostly focus on the AM market.
Because Taiwan's automotive component manufacturers are mostly small and medium-sized enterprises, and there are many manufacturers, and Taiwan’s domestic demand market is limited, the component market is mostly exported as the development focus; and in recent years, Taiwanese automotive component manufacturers have gradually begun to enter the price-differentiated market. , Investing in overseas factories and cooperating with large international automakers, and gradually transforming into the original market. With cars gradually becoming smarter, cleaner and electrified, business opportunities for auto parts manufacturers are gradually emerging, such as car lights. The market share of the output value of, bumpers, sheet metal, and molds is almost the first in the world, and the global market share is as high as 80% to 90%, showing the competitive advantage of Taiwanese manufacturers.
2. Midstream
The middle reaches of the automotive industry are the central assembly plant. The process of assembling cars in the central plant includes body welding, painting, pre-assembly of some parts and components, and finally the assembly of the entire vehicle. The automaker outsources the parts and components to the first-class satellite factory, and the first-class satellite factory subcontracts the detailed parts to the second and third-class satellite factories to form a multi-level division of labor structure. The central factory integrates long-term cooperation upstream component manufacturers and satellites The factory immediately provides the complete vehicles, parts and technical services required by the downstream sales end, so that the downstream sales companies can reduce the related costs of self-prepared inventory and reduce operating risks. A complete car must pass various inspections and test standards under different conditions before it leaves the factory. Only after it is confirmed that it is qualified can a safe and reliable car be considered as completed. At present, domestic automakers are mainly distributed in Taozhu seedlings and Pingtung; while the auto parts industry is distributed in Taozhu seedlings and Tainan.
In the early days of domestic autos, due to their immature technology, automakers signed technical cooperation with foreign automakers. Most of the parts and components were imported and assembled in bulk. Later, domestic automakers set up one after another and began to introduce production technologies for seats, suspensions, and transmission system components. And because domestic casting, stamping, forging and other technologies are becoming mature, brakes, instruments, and steering systems have reached the goal of localization. The domestic production rate of parts has gradually reached 70%. However, due to the small domestic market, manufacturers are turning to develop key components and components. Expansion of the export market; after joining the WTO in 2002, manufacturers have actively joined the global division of labor. Automobiles have begun to try to export to Southeast Asia (complete vehicles and completely disassembled and imported to assemble CKD), and operate the Chinese mainland market. Through the cross-strait division of labor, Taiwan's technological energy is imported into mainland China to gain the scale benefits of mass production.
In recent years, Taiwanese manufacturers have been exported to Europe and the United States for many years due to their excellent parts design and manufacturing capabilities, good factory management capabilities, and flexible production. Domestic manufacturers have been able to master a complete automotive supply chain. There are Taiwanese manufacturers with advantages in the ICT electronics industry. The overall domestic automotive electronics output value reached NT$160 billion, while the component output value In showing an important milestone in the development of Taiwan's automobile industry, it has further enhanced the position of Taiwan's component manufacturers in the automotive supply chain.
3. Downstream
The downstream of the automotive industry is vehicle sales and after-sales services. Many domestic automakers have technical cooperation parent plants, so they all have a complete supply chain to meet the market's demand for different models. Yulon Motor’s main technical cooperation partners are Japan’s Nissan, and Thai Motors is the agent dealer of Toyota of Japan in Taiwan, China Motors has signed a technical cooperation contract with Mitsubishi, and Sanyang Industrial has switched to technical cooperation with Hyundai Motor of South Korea after terminating its technical cooperation with Honda. Domestic car manufacturers have many dealerships to sell their own brand cars. Most of the vehicles sold are commercial vehicles, medium and small sedans, and recreational/commercial vans. At present, most of them are mainly in Taiwan. The export market of automakers is also expanding year by year, but the domestic auto market is currently saturated. Imported cars have also become more competitive due to factors such as reduced excise taxes and tariffs after joining the WTO. Therefore, the domestic automobile industry is specialized in manufacturing and selling multi-brands, and strives to improve the manufacturing quality, cost, delivery time and service satisfaction of each brand. Exclusive customized service and after-sales service for each brand.
Currently, the world's top three auto markets are ranked by mainland China, the United States and Japan, and India has surpassed Germany in 2017 to become the world's fourth largest auto market. Global car sales in 2017 may exceed 90 million vehicles, an increase of 2.7% from 2016, of which the Chinese market accounts for more than a quarter, indicating that the demand for traditional cars is still strong. The reason is the continued rebound in demand in the Western European market, as well as Brazil and Russia. Waiting for the recovery of demand in emerging markets, emerging markets have long been the main growth driver for global car sales. Emerging market sales have accounted for more than half of global sales since 2010, and Asian car buyers are the main reason for overall car sales growth, especially in China since 2009. It started as the world’s largest automotive market.
According to statistics, the top three automobile groups in global sales in the first October of 2017 are Volkswagen Group, Toyota Group and Renault-Nissan Alliance, with global sales of more than 8 million vehicles.
The cumulative sales of the domestic auto market in 2017 reached 444,669 units, an increase of 1.1% compared to 439,629 units in 2016; while the new car market sold 5,040 more units than in 2016. The key to observing the changes in the auto market in 2017 is the acceleration of the SUV’s popularity in the market and the strong attack of imported cars. In recent years, there has been a wind of recreational vehicles around the world, and the growth rate is much higher than that of ordinary RVs. In 2017, the imported car market Sales of 185,581 vehicles, a growth rate of 8.9% compared with 2016, and a market share of 41.7%. It is not news that the domestic auto market has been eroded by imported cars, and the output value of Taiwan’s auto industry has gradually declined to only 2016. 190.6 billion yuan left.
After all, the completion of a new domestic car requires at least 3,000 sets of molds, but because of the low output, each mold needs to be spread for several years; on the other hand, as long as the imported car has a new model, the latest car can be introduced immediately; and It takes at least three years for domestically-produced cars to develop parts from the plan to open molds, develop parts with parts dealers, and produce them on the market. In recent years, due to the rapid development of the safety equipment of various car manufacturers around the world, such as lane deviation, blind spot detection systems, etc., Even six airbags have become standard. Compared with imported cars, domestically-made cars seem to be more expensive and incompletely equipped. In addition, after the government abolished the excise tax relief and import quotas for domestically-made cars, there is no relevant domestic automobile industry policy. This is a declining domestically-made car. The car market deserves the government to rethink and review.
At present, there are about 2,500 vehicle manufacturers in Taiwan. With the domestic production technology and product quality gradually gaining international recognition, automakers are gradually exporting and deploying their vehicles in global markets such as the Middle East, Russia, and the ASEAN, making breakthroughs and innovations. Taiwan has a complete automotive market. The component industry supply chain has formed a dense supply network of upstream, midstream, and downstream, coupled with excellent technical quality, and the world’s major automakers have also moved their component purchases to Asia and Mainland China. Taiwan has a convenient location, so in the future, Taiwan automakers will still Will have considerable competitive advantage.
With the emphasis on the Internet of Vehicles by major international manufacturers, it has led to the development of automotive intelligence. Through wireless communication technology, vehicle-related information is transmitted to the remote management platform, and the vehicle is used as a big data center, and navigation, entertainment, and information security are integrated. With the improvement of services such as, communications, and automobile performance, if Taiwanese manufacturers can speed up their pace, future business opportunities will be limitless.
Looking forward to 2018, the economy is gradually recovering, coupled with the benefits of interest rate hikes and tax cuts in the United States, it will definitely help the stock market rise and drive the overall consumer market; and the total number of domestic cars with more than 20 years of age will reach 920,000. It shows that there are still considerable potential car swap business opportunities in Taiwan's auto market, and with the advancement of driverless cars and in-vehicle system technology, the future business opportunities of the auto industry cannot be underestimated.
source:
Industry value chain information platform http://ic.tpex.org.tw/introduce.php?ic=3000
