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Fashion models walking the catwalk in an industrial scheme with rhythmic urban music. It is not a fashion show in Paris. It's the biggest headlight manufacturer in Taiwan- DEPO, announcing their latest uniform, which cooperates with Taiwanese streetwear brand- STAGE using the headlight factory as a fashion runway—this kind of cooperation and innovation symbolize the Taiwanese auto parts industry's brand transformation ambition.
Taiwan takes an essential place in the world automotive supply chain, especially in the headlight and bumper aftermarket. In 2019, exports reached USD 6.3 billion and gained a 70% market share in the EU and US markets.
In recent years, the changes in China's investment environment, the US-China trade war, COVID-19 pandemic, and USMCA taking effect, the global automotive industry, including Original Equipment and After Market, has to reconsider its global management and plan in the post-pandemic era.
The Economist points out there are two trends regarding the global supply chain in the post-pandemic era. First, China remains an essential role in the worldwide supply chain, but many global firms seek to reduce their dependency on China. Their alternative strategy will be to put more business into factories elsewhere in Asia. Second, global firms will invest more resources in smartization and automation in their factory to decrease the risk of human contact and labor cost. Take Taiwan Excellence award winner DEPO and TYC as examples. TYC invested USD 130 million in 2019 to expand its Tainan factory and smartization its factory. This July, DEPO announced to invest USD 70 million to build the new smart factory in Tainan and Changhua as well. These cases reveal that the smart transformation of the Taiwan Automotive industry is an ongoing trend.
Refinement and high value add product development are another fundamental transformation of the Taiwan Automotive industry. TYC's 2020 Taiwan Excellence award-winning products- "Full LED Motorcycle Tail Lamp for TRIUMPH UK" and "Full LED Front Turn Indicator for Ducati Motorcycle" are examples. The innovative Full LED tail lamp is designed and manufactured for TRIUMPH ROCKET III. By using the specialized optical diffusive material, the tail lamp presents a homogeneous illumination light guide effect with enhanced 3D multi-layer images. The premium state of light is designed to provide visual comforts and energy savings. It reduces glare and saves nearly 50% of energy consumption compared to the traditional halogen H4 bulb. The use of non-toxic materials and eco-friendly manufacturing is complied with RoHS and REACH regulation. TYC is fully committed to Made in Taiwan's high quality and international green energy standard.
DEPO is taking the same trajectory as well. They segment China and international market by different product levels. China's factories will focus on the local market and manufacture low-cost products. High value-added products in the international market will remain in Taiwan factories. Its "Refitted truck LED headlamp" is an example. The LED headlamp design consists of structure, heat radiating, material science, optical and electronic technology. Moreover, adopting low energy consumption manufacturing process and using environmental-friendly material, which enhances recycling and re-use.
The future is unclear as the COVID-19 pandemic persists. Experts expect that US auto sale will decrease. But this phenomenon leaves the demand for AM auto parts to our imagination. Moreover, USMCA took effect in July, this is a great opportunity for the US auto parts industry to explore the regional market and enhance its market share in the region. But the effect for Taiwanese companies is uncertain and remains to be seen.
Taiwan Excellence uses diverse marketing methods to enhance Taiwan’s industrial image and increases in-depth coverage. It leverages its social media accounts, online platform promotion, and international media publicity in different locations to strengthen the image of excellence and international branding in Europe, the Americas, and the New Southbound market. For more information, please visit Taiwan Excellence's official website: https://www.taiwanexcellence.org/en
Project supervisor for contact:
Wu Chun-Tse, Strategic Marketing Director of TAITRA