Global Demand for Auto Parts in The Fourth Quarter Is Expected to Be Strong

Global demand for auto parts in the fourth quarter, the traditional high season, is expected to be strong, especially amid bad weather in North America. Tong Yang Industrial Co., Ltd., a major auto-parts supplier in Taiwan, announced registered revenue of NT$1.15 billion (US$38.3 million) in October, up 8.3% month-on-month (MoM) and 2.9% year-on-year (YoY). Macauto Industrial Co., Ltd., a major original equipment (OE) sun-curtain supplier to many international automakers, reported October revenue of NT$179 million (US$6 million), up 12.3% YoY; And cumulated consolidated revenue in the first 10 months of NT$1.78 billion (US$59.2 million), up 8.6% YoY. Tung Thih Enterprise Co., Ltd. (TTE), a major OE automotive-electronics supplier, had revenue of NT$179 million (US$6 million), up 1.7% MoM and 46.8% YoY, due to the firm`s smooth exports of aftermarket (AM) products offsetting decreased OE items exported to Japanese automakers in China. Crispin Wu, Tong Yang`s president, pointed out that his company`s AM auto-parts sales saw an 8.9% MoM and 4.7% YoY increase in October, and that the global AM auto-parts market has entered into the traditional high season in which major customers in Europe and North America have been increasing orders. Tong Yang`s OE parts revenue, according to Wu, grew 5.3% MoM and 9.4% YoY in October, thanks to increased exports. The firm is accelerating renovation of its OE-parts factory in Northern Taiwan, so as to supply bumpers and other plastic parts to potential Japanese customers. Industry insiders said that the global auto-parts market has been sluggish for about two years due to the poor global economy, but are optimistic toward AM parts sales in the fourth quarter, due to gradually recovering demand from North America and wintry weather that should drive demand. Source: Chinafastener. Com