Jeffry Babb, TAIPEI, Taiwan, The China Post
“ AMPA is the biggest and best auto parts and motorcycle show in the Asian region. There’s nothing else like it,” says Christie Huang, marketing manager for Taipei AMPA 2003 at show organizer, the China External Trade Development Council (CETRA). Taipei AMPA 2003 — the Taipei International Auto/Motorcycle Parts and Accessories Show — will be held at the Taipei World Trade Center (TWTC) Exhibition Hall from May 23 through 26. Organizer CETRA, along with co-organizers the Taiwan Transportation Vehicle Manufacturers’ Association and the Taiwan Rubber Industries Association, say this will be the biggest and best AMPA ever held. “This year, for the first time, AMPA will cover both the first and second floors of the TWTC,” says Huang “making it the biggest show ever.”
AMPA this May will be 25 percent larger than last year’s show, with 650 exhibitors using 1,900 booths. “We have some 30 or 40 potential exhibitors on the waiting list we can’t fit in,” says Huang. CETRA says that this is the best one-stop sourcing show for international buyers. “Thousands know this complete venue offers their edge with the latest breakthrough products,” say the show organizers. Huang cites auto electronics, such as GPS systems, as the things that will make this year’s AMPA special.
The Taiwan automobile parts and motorcycle industries are now part of a global network of manufacturers, with Taiwan companies seeking tie-ins with other global manufacturers, and replicating in other countries the center and satellite system that is characteristic of Taiwan manufacturing.
Taiwan’s auto and auto parts industries are organized into a highly efficient central-satellite system. Auto companies give parts business to first-tier contractors, who in turn sub-contact order to second and the third tier concerns. This system now contains about 300 EOM factories belonging to ten Taiwan auto companies, as well more than 2,000 parts suppliers, including second- and third tier factories and those that supply the after-service market. Another 200 have also invested in mainland China. Taiwan’s auto industry began with Taiwan Yulon Motor Co. in 1957, as well as the related auto parts and components industry. After more than four decades, most of the companies have developed flexible production skills that allow them to produce a comprehensive assortment of auto parts and components in small quantities that meet international quality standards. Taiwan’s exports of auto parts and components amounted to about US$2.5 billion during 2002, an increase of 15.3 percent over previous year. The U.S. is the major destination for exports, with 39.8 percent, followed by Japan at 5.7 percent and Hong Kong at 5.2 percent. The Philippines, Canada, the United Kingdom, Germany, Australia, Indonesia and Mexico all took about 2 percent. Imports of auto parts and components amounted to about US$1.5 billion in 2002, a growth rate of 12.3 percent over 2001. Japan was the source of two-thirds of these imports, with about 5 percent each from the U.S., Germany and Korea. About 2 percent each came from mainland China, Thailand and Mexico, with smaller amounts from Malaysia and the Philip
pines. The Taiwan motorcycle industry began in 1952 when a gas engine was installed on a bicycle to become the first “motorbike.” As a result of 50 years of hard work by he private sector and the ROC government, the Taiwan motorcycle industry now offers both sophisticated production facilities and superior export competitiveness. Manufacturers have a strong central satellite system coupled with a solid industry structure, enabling them to produce a wide range of high-quality, competitively priced motorcycles and parts for the global market. There are 15 motorcycle manufacturers in Taiwan and hundreds of suppliers for parts and components.
According to figures from the Taiwan Transportation Vehicle Manufacturers Association, some 650,000 new motorcycles were sold in domestic markets in 2002, with exports amounting to some 200,000 units. The export value of motorcycles amounted to US$165 million in 2002. Japan is the main export market, with 16.5 percent, followed by Italy (14.1%), the United States (8.9%), the Philippines (5.6%), Vietnam (4.9%) and Mexico (4.7%). As long ago as 1991, manufacturers as suppliers in the motorcycle and parts industry start4ed moving their production offshore, particularly to mainland China and the Southeast Asian countries, in order to expand their markets globally. It was necessary to replicate the Taiwan parts supply chain system to support overseas motorcycle plants. Companies such as San-Yang and Kwang-Yang, therefore, invited their parts and components suppliers to set up plants in China as well as Indonesia. Motorcycles are very popular in Third World countries such as India and Indonesia, as well as mainland China, due to the fact they allow mobility in pricing and are more affordable than automobiles. Taiwan manufacturers are being encouraged to extend their business worldwide since Taiwan motorcycles, particularly in the 50 to 150 c.c. range, are now very competitive with other products in the world market.
Show marketing manager Christie Huang says that pre-registrations from overseas are strong.
“Overseas buyers are attracted to the show, because it’s 30 percent bigger than last year,” says Huang. “In addition, we have lined up some very special deals for international show goers,” says Huang. “If you are among the first 800 pre-registered Taipei AMPA ‘03 buyers, you get a free NT$1,000 hotel coupon that ‘s good for use in any Taipei AMPA assigned hotel from May 20 to 26,” Huang adds. “To register, simply check out www.TaipeiTradeShows.com.tw/AMPA.”
This year, world-renowned auto parts and accessories companies such as will exhibit their latest products. These will include everything from engine fittings, power trains, tires and tubes, electrical lighting and visual signaling equipment, automobile and motorcycle frames and parts and much more. Last year saw a 21 percent rise in foreign buyers – and this year is expected to be bigger, with last year’s tally of almost 18,000 local and foreign buyers likely to be exceeded.