Taiwan’s leading auto parts brands will demonstrate their ability to remain competitive in an industry poised for disruption at AAPEX 2016, being held this week at the Sands Expo in Las Vegas. According to TAITRA, Taiwan’s leading trade association for the automotive aftermarket, that competitiveness is built on top of the island’s outstanding IT infrastructure and flexibility in terms of responding to new market trends. Visitors to AAPEX can gain a firsthand look at the diversity of Taiwan’s industry at the Taiwan Excellence Pavilion (booth No. 7834) from Nov.1-3 in Las Vegas.
Taiwanese brands move towards regional specialization to maintain their elite status
The $356 billion auto care industry is experiencing significant growth. The average length of vehicle ownership for new and used vehicles has increased by 60 percent over past 10 years, according to statistics from Openbay.com. As the demand for replacement parts goes up, the value of Taiwan’s auto parts industry is growing yearly in both the aftermarket and OEM sectors.
In addition, demand from developed countries such as the U.S. for high-value parts and new energy efficient vehicles is driving Taiwan’s auto parts makers to aggressively move toward international consolidation and regional specialization to maintain their advantage in the industry. The demand in the U.S. in particular, remains high and is of great significance to Taiwan. Taiwan saw a total export value of nearly $3 billion to the U.S. market alone in 2015, representing a growth of 11.37 percent.
Taiwan can meet demands in the connected car market with its IT credentials and flexibility
As the connected car matures technologically, it will influence market trends and automakers’ relationships, according to a report from PwC research. This will cause the aftermarket to grow faster than average, at least in the near term, as shared mobility increases utilization. At the same time, automakers are introducing a wave of new infotainment and information technologies, including smartphone connectivity and in-dash apps, sophisticated audio and navigation systems, and even incorporating technology that recognize gesture controls.
TAITRA says Taiwan is especially equipped among overseas markets to cope with this disruption, thanks to a wide range of advantages. These include a comprehensive supply chain and seamless integration between central and satellite factories. This system, bolstered by a wide network of clusters strategically placed island wide, ensures production flexibility, a diversified product range along with rapid prototyping and reverse engineering. Most importantly, Taiwan’s exceptional IT infrastructure makes it easy for the local industry to rapidly adapt to any new technologies in the market.
Visit the Taiwan Excellence Pavilion in booth No. 7834 to learn more.
