Taiwan's experience in entering auto parts into the U.S. market

The 4th (2010) China International Auto Parts Expo was held at the China International Exhibition Center from September 25 to September 27, 2010. "China International Auto Parts Expo" is the only national-level international auto parts expo held by the Chinese Ministry of Commerce in accordance with the principle of internationalization, specialization, and marketization. It provides a full range of exhibitions, procurements, and exchanges for the Chinese and international auto parts industry. , cooperation platform.

The "2010 Key Auto Export Market Policies and Regulations Propaganda Meeting" held at the same time as the Parts & Components Expo was held in Beijing on September 26. At the meeting, Wu Zhengdao, deputy general manager of Taiwan Qinmei Co., Ltd., introduced the experience of Taiwan auto parts entering the US market.

Wu Qindao, Deputy General Manager of Taiwan Qinmei Co., Ltd.

Taiwan's export of auto parts

Taiwan’s export of auto parts has grown steadily. It exceeded US$2 billion in 1996 and has exceeded US$5 billion by 2008.

Taiwan's auto parts exports mainly through two ways: First, OEM, that is, OEM, mainly Yili, Delta, Tongzhi, Huichang production of car-related products, mainly sold to the mainland and North America; Dongyang company's production Instruments and other plastic parts are mainly sold to the mainland; Kaiyi’s production of sheet metal is mainly sold to the mainland; Dayi, Twi West, and Debao’s production of lamps are mainly sold to the mainland; Energy, Bixiang, and Zhimao’s batteries are produced. The power management system mainly supports electric vehicles. The other way of exporting is AM, the light products of Twi West and Debao, and Ding Ding’s sheet metal products are mainly sold to European and American markets.

There are two main modes for Taiwan's auto parts industry to enter the OEM supply chain. One is to use foreign Tier 1 plants in the mainland to introduce funds, combine the advantages of both parties, and cut into the international market supply chain; the other is to supply Taiwanese regions. Depot's practical experience, and set up production bases in mainland China or Thailand to interact with Tier 1 plants in various countries in order to meet the coordination and timeliness.

Analysis of Demand Characteristics and Trends of Automobile Parts Market

In the past ten years, the global auto parts market has maintained a steady growth trend. The total output value has risen since 2003 exceeded 400 billion U.S. dollars, and is expected to reach about 75 million U.S. dollars by 2010, with an average annual growth rate of nearly 10%.

Contrary to global trends, the output value of US-made auto parts factories has been declining year by year. The proportion of overseas factories and imports is increasing, and the trend of shifting overseas is very obvious. This gives overseas factories an opportunity.

US auto parts market output

Taiwan's automotive parts experience in the North American market

From the experience of Taiwanese companies for many years, customers in North America most want full-service from outside the product. They want to maintain long-term customer relationships with OEMs. OEMs can have common R&D capabilities and participate in quality adjustments. They also require OEMs to provide: EDI integration of OEM customers, engineering support, overseas quality support, sea, land, and air transportation supply chain Management, with other value-added services such as inspection, cleaning, assembly and other diversified services.

Compared with multinational companies, due to the relatively small scale of Taiwan's spare parts manufacturers, most of them can only enter the small international auto OEM parts and components market, and it will take 1-2 years for orders received from international customers to work hard. Supply and demand and unbalanced profits have prevented suppliers from effectively expanding their operations.

Despite these constraints, Taiwanese parts and components suppliers are still able to effectively integrate into the international market. Utilizing the global GOLP parts operating platform, it can effectively use the system to link CMAI and VMI to help Taiwanese suppliers meet the needs of the Dachang and local warehouses. Through the system's connection to Cargo and Smart's logistics platform, it can effectively present logistics conditions to pursue management. Build communication channels through system integration to allow customers, LSPs, and supply chains to effectively communicate and control progress. In addition, Taiwanese companies can also provide customers with informationization requirements for Taiwanese suppliers. Customers can directly place orders, forecast, and inquire into production and logistics progress and inventory status through the system.

Advice for mainland auto parts companies

In the end, Mr. Wu Zhengdao made several suggestions to mainland auto parts enterprises. First, he must work hard to upgrade his R&D capabilities. Second, he must have the ability to grasp market trends, and at the same time ensure sufficient production capacity and quality in order to meet the North American market certification. Standards, and with a full range of services, good communication and management, to open up the North American market, it will be possible to achieve a multiplier effect.