Fast Market Research

Taiwan Autos Report Q2 2014 - New Market Report

Fast Market Research recommends "Taiwan Autos Report Q2 2014" from Business Monitor International, now available


Boston, MA -- (SBWIRE) -- 05/01/2014 -- According to the Taiwan Transportation Vehicle Manufacturers Association (TTVMA), domestic auto sales in February 2014 were up 15.7% year-on-year (y-o-y), to 15,154 units. However, this figure was distorted due to the Chinese New Year holiday effect. A more meaningful comparison would be to compare y-o-y growth in combined sales of the first two months of the year.

In fact, domestic auto sales for 2M14 came in at 48,219 units and were down 7.9% y-o-y. Indeed, the poor start to the year is in line with our bearish outlook on the market.

However, both the passenger car segment and the commercial vehicle (CV) segment had slightly divergent fortunes. The CV segment saw its 2M14 domestic sales mostly unchanged on a y-o-y basis, at 9,242 units. We have upgraded our 2014 CV sales forecast to pencil in a contraction of 0.4% versus -3.1% previously.

View Full Report Details and Table of Contents

On the other hand, domestic passenger car sales declined 9.7% y-o-y in the first two months of 2014, to 38,977 units. However, we are maintaining our full-year sales forecast of a 1.8% decline, to 210,000 units, as we believe that the low base effects of 2013 will support growth in the coming months.

This will then revise our total 2014 vehicle sales growth forecast to -1.5%, to 255,000 units, from -2.0% previously.

We believe the sector will continue to face headwinds for the rest of the year. Our Country Risk team forecasts private consumption growth in 2014 to remain weak at 1.9%, which will result in lacklustre domestic passenger car sales. We also expect CV demand to remain weak as local manufacturers struggle from softening export orders, not least due to the ongoing slowdown in the Chinese economy.

Despite the poor start for auto sales, domestic vehicle production for the first two months of 2014 rose 2.9% y-o-y, to 52,935 units. This was due to buoyant vehicle exports, which grew 37.8% in 2M14, to 14,816 units. We believe exports will continue to remain a bright spot and support domestic output in 2014 (see 'Car Exports Will Support Auto Production', February 21). As such, we are maintaining our 2014 production forecast to remain roughly unchanged from 2013's figures, at 340,000 units.

EV Developments

Taiwan has high ambitions in the electric vehicle (EV) segment. Yulon plans to have Luxgen electric models on the market by 2018. These plans also bode well for Taiwan's aim of becoming one of the world's top-five electric EV producers. As part of its partnership with Japanese automaker Nissan Motor, Yulon hopes to work with the Taichung City Government to increase the number of EVs on Taiwan's roads. Yulon is also in the process of constructing a plant in Xiaoshan, China, where it will manufacture both petrol and battery-powered LUXGEN models for the Chinese market.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Browse all Transportation research reports at Fast Market Research

You may also be interested in these related reports:

- Serbia Autos Report Q2 2014
- Argentina Autos Report Q2 2014
- Russia Autos Report Q2 2014
- Thailand Autos Report Q2 2014
- United Arab Emirates Autos Report Q2 2014
- Vietnam Autos Report Q2 2014
- China Autos Report Q2 2014
- Morocco Autos Report Q2 2014
- Italy Autos Report Q2 2014
- Hong Kong Autos Report Q2 2014