Taiwan's Auto Parts Makers Tap Supply Chain Of Chinese Carmakers

A number of Taiwanese auto parts manufacturers have continually become part of supply chains of Chinese carmakers on an OEM (original equipment manufacturing) basis, securing solid growth business for the future.

Among them is Depo Auto Parts Ind. Co., Ltd., a globally known ODM (original design manufacturer) of auto lamps, whose production plant located in Kunshan of China’s Jiangsu has recently begun delivering auto lamps directly to Zhejiang Geely Holding Group.

Depo directors said that Geely starts to order auto lamps from its Kunshan plant on an OEM basis primarily because the Chinese carmaker has just completed construction of its newest plant in Ningbo, Zhejiang, which will become fully operational and thus shows heavy demand for OE parts in the short term. Presently, auto lamps ordered by the customer accounts for one fourth of the output by Depo’s Kunshan plant.

Coincidentally, Mobiletron Electronics Co., Ltd., one of Taiwan’s largest auto electronic product suppliers, confirmed that it has just shipped its TPMSs (tire pressure monitoring systems) to South East Motor Co. as optional equipment provided to car buyers. Shipment to the customer, Mobiletron noted, is expected to further increase next year.

In the meantime, Mobiletron has also been in talks with other Chinese carmakers, including Chery Automobile Co., Geely and Saic Motor Corp. Co., for orders for TPMS products. It is not overstated that TPMSs will hopefully serve as a major profit contributor to Mobiletron, for such products, the Taiwanese supplier said, are mainly used by the Chinese automobile industry in high-end sedans and commercial vehicles.

Right after completing delivery to Shanghai Volkswagen Automotive, Faw Volkswagen Automotive, Dongfong Honda Automobile and Dongfong Nissan, E-lead Electronics Co. Ltd., a GPS (global positioning system) device producer in Taiwan, has recently begun delivery to Faw Toyota Motor, hence injecting considerable growth momentum to its business performance.

E-Lead’s combined revenue for October amounted to NT$246M, sharply up 35.95% from a year ago, and its revenue for the first 10 months of this year surged by 51.38% year on year to NT$2.477B.