Taiwan Autos Report Q4 2010: New research report available at Fast Market Research

Oct. 31, 2010 - PRLog -- The strength of private consumption, which accounts for 54.3% of GDP, is promoting a strong demandled recovery for the Taiwanese auto industry. New vehicle sales in Taiwan increased nearly 24% yearon- year (y-o-y), to 167,061 units during the first eight months of this year, according to estimates from the Taiwan Transportation Vehicle Manufacturers Association. The surge - which comes despite the scrapping of the reduction in commodity tax - is prompting industry participants to expect total sales of 300,000 units by the end of 2010.

BMI believes that the surge was partly prompted by expansion in the Taiwanese economy. Recent economic indicators have been very encouraging with Q110 and Q210 real GDP growth of 13.27% y-oy and 12.5% y-o-y respectively. More encouraging is the fact that June unemployment rate came in at 5.16%, notably better than the 5.94% figure recorded in June 2009.

Despite the optimism, BMI is concerned that the growth rate achieved so far may not be sustained in Q410, thanks to high base effects from the same period last year. We hold to our forecast for sales growth of 16% y-o-y by the end of the year. Meanwhile, imminent slowdown in mainland China will dampen auto sales growth to an average 10% y-o-y during 2011, followed by periods of more robust growth during 2012-2014, when growth should average 11% y-o-y.

Given that 80% of vehicles produced in Taiwan are sold on the domestic market, auto output followed the trends in the domestic demand - increasing 25% y-o-y, to just over 160,000 units, during the first eight months of this year. We hold to our 13% y-o-y growth forecast for 2010 for now as we expect growth in domestic demand to be less impressive than that seen so far. Vehicle production in Taiwan should firmly remain on a positive growth trajectory for the rest of the forecast period, reaching 362,360 units by the end of our forecast period to 2014. Risks to these forecasts, however, lie on the upside, thanks to Germany's Volkswagen's plans to set up an assembly plant in Taiwan.

Taiwan has climbed to 10th with 49.4 points in BMI's Industry Risk-Reward Ratings, mainly on the back of its sound macroeconomic environment and high scores for long-term economic risk and low corruption. The country also receives an above-average rating for its regulatory environment, although links with the Chinese mainland may arouse concerns over IPRs.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/90322_taiwan_autos_report_q4_2...

Report Table of Contents:

SWOT Analysis
- Taiwan Autos Industry SWOT
- Taiwan Political SWOT
- Taiwan Economic SWOT
- Taiwan Business Environment SWOT
Asia Pacific Regional Overview
- Good Growth Prospects Up For Grabs In ASEAN Markets
Business Environment Ratings
- Table: Business Environment Ratings - Auto Industry Asia Pacific
Industry Forecast Scenario
- Production And Sales
- Table: Taiwan Auto Sector - Historical Data And Forecasts (CBUs unless otherwise stated)
- Table: Taiwan Motorcycles Segment - Historical Data And Forecasts (CBUs unless otherwise stated)
- Trade
- Table: Taiwan Auto Sector - Historical Data And Forecasts (CBUs unless otherwise stated)
- Table: Taiwan Auto Trade By Destination (TWD'000), 2009
- Macroeconomic Forecast Scenario
- Table: Taiwan - Economic Activity
Competitive Landscape
- Market Overview
- Table: Taiwan - Vehicle Sales, Jan-Aug
- Table: Taiwan - Vehicle Production, 2008-2009
- Industry News
- Commercial Vehicle Segment
- Table: Light Commercial Vehicles Sales (Units)
- Table: Light Commercial Vehicle Production (units)
- Heavy Commercial Vehicles
- Table: Heavy Commercial Vehicles Sales (Units)
- Table: Heavy Commercial Vehicles Production (units)
Company Monitor
- Denso Eyes Local Content To Build On EM Success
Company Profiles
- Kuozui (Toyota Motor)
- China Motor Company (CMC)
- Yulon Group
BMI Methodology
- How We Generate Our Industry Forecasts
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.