cens logo

Global Auto Market 2019 Overlook

Sep 05, 2019 | By CENS

A harsh economic situation swept through the global automotive market in 2018, largely due to slowing market demand and political competition among the world's superpowers, as well as decreasing confidence from consumers, leading to the first decline in five years in the industry. More importantly is how the main markets in China, Europe and North America have already fallen into negative growth. Despite the shrinking market, there are several promising prospects to expect, including exponential growth in electric vehicles and advancing self-driving car technologies.
Due to the shrinking auto markets in both China and the U.S., the sales in the global auto market in 2018 was down by 0.7% to 93.6 million units as other markets were unable to step in. Together with China's stimulus package and on the condition that the country maintains peaceful trade negotiation with the U.S. and other countries, the annual growth rate for 2019 is expected to be at 1%. However, if the trade negotiations between the U.S and China break down, the global auto market would face a difficult recovery between 2019 and 2021.
Not much changes were made to the global auto market distribution, with China still the largest market at 30% and followed by the U.S. with 19%. Together are influential in terms of global influence as both make up half of the world's auto market.

In 2018, the Chinese auto market suffered through a severe economic downturn. Although the government launched tax cuts and auto dealers lowered the price to stimulate consumer spending, both attempts failed to turn the market around.

On the other hand, sales in the U.S auto market were surprisingly steady in 2018, far beyond market prediction. The overall sales were approximately 17.30 million units, surpassing the record for over 17 million units sold in four consecutive years, representing the tenacity of the American auto manufacturing industry. However, with four factors disrupting the market-- increasing car loan interest rates, fewer car rental discount programs from auto plants, the economic cycle of the auto market, and more appealing options among second-hand cars --sales of new vehicles were impacted, prompting concerns of an overall market decline.

Self-Driving Vehicle Trends
Faced with the business opportunity and trends in the global autonomous vehicle industry, governments and industries compete to develop their vision and blueprint of their desired self-driving vehicles.

The U.S. scheme is considered the most progressive for launching the Self-Driving Car System 2.0 in 2017 as a blueprint highlighting the partnership between the industry, government, and academia. The scheme is aimed to accelerate the timeline of road testing for autonomous vehicles and a guideline to simultaneously develop the main body of a self-driving vehicle and the Internet of Vehicles technology. If things go as planned, the U.S. expects to launch Level 5 Self-Driving Vehicles after 2025.

The development of self-driving cars in the European region is comparatively conservative, mainly focusing on self-driving business cars and medium-sized shuttle buses. With consideration of strict guidelines to upholding human dignity, safety and information protection standards and protocols, estimates of the region reaching Level 5 Self-Driving Vehicles is much more conservative, suggesting the goal could be reached after 2035.

In the Asian region, Japan offers a more comprehensive blueprint compared to its other Asian counterparts, primarily due to its aging society and the upcoming Tokyo Olympics in 2020. Japan has chosen to focus on developing an autonomous vehicle fleet and increased, stringent, safer driver assistance systems. In the short-term, Japan aims to offer public transportation services and highway driving in accordance with NHTSA Level 3 standards ahead of the Tokyo Olympics, while in the long-term, realize Level 5 full automation capabilities after 2030. China has also invested in the research of self-driving car-related technology and prompted legislation revision in 2017 under government agencies like the Ministry of Transportation, Ministry of Industry and Information Technology, and Ministry of Public Security in Beijing. With the regulation and enforcement self-driving vehicle laws underway, China aims to realize Level 4 capabilities on the highway after 2025.
Taiwan's Position and Outlook in the Auto Industry
Taiwanese manufacturers not only have the ability to design quality products, manage the factories, while they keep flexible manufacturing all the while maintaining quality. These firms have been exporting products to the U.S. and Europe for many years, maintaining tight-knit supply chains from up-stream to downstream in the auto industry, especially buoyed by the advantages of having a strong, domestic ICT industry. Taiwan's private ICT companies such as TMSC, Winbond, MediaTek, Foxconn, and Delta have tapped in the autotronics field with its steady manufacturing capabilities, gradually forming the stepping stones for a comprehensive supply chain under a domestic self-driving vehicle industry.

On the other hand, the government is actively pushing for the legislation of related regulations for self-driving vehicle oversight. The Industrial Technology Research Institute has predicted the global market value for markets such a self-driving cars, connected cars, electric cars and would reach an estimated US$800 billion by 2030. The institution also holds expectations to see Taiwan build a strong production chain by integrating automotive software and hardware, and thus, cement its role in the emerging markets.
Autonomous Vehicles team up with Taiwan’s ICT industry
(Photo courtesy of ARTC)Autonomous Vehicles team up with Taiwan’s ICT industry (Photo courtesy of ARTC)

Industry Reports

Tair Wang Enterprise Co., Ltd.</h2>

Tair Wang Enterprise Co., Ltd.

Sep 03, 2019

Harley-Davidson motorcycle parts, restoration parts for classic cars, auto parts and accessories, hardware parts and all kinds of high-quality die casting products. Founded in 1978, Tair Wang Enterprise Co, LTD. is a zinc die-casting manufacturer with ISO 9001 quality certified. With the excellent reputation as a professional OEM manufacturer, Tair Wang has actively expanded its businesses abr...

LEDS nowadays see the highest application in the auto industry. (photo courtesy by Economic Daily News)

Consumer Demand Buoys LED Industry to Greater Heights

Aug 27, 2019

LED products can be found literally everywhere in the daily life of consumers, for example, household lights, navigation lights, screens for television and laptop computers, and in cell phone backlights. Nowadays, LEDs for automotive vehicles are also increasingly important for the industry; compared to traditional light bulbs, LEDs are smaller, more compact, boasts less latency, and longer lifes...

Taiwan's Hand Tools Exports Continue to See Growth in Past 2 Years</h2>

Taiwan's Hand Tools Exports Continue to See Growth in Past 2 Years

Aug 19, 2019

At least 70% of Taiwan’s hand tools industry is concentrated in Taichung and Changhua, according to a Ministry of Economic Affairs Department of Statistics report. Hand tools are the primary tools used for inspection, repair, assembly and disassembly, coming in non-powered and powered options. Most screws, nuts, files, wrenches and cutting tools are all categorized as non-powered hand tools, whil...

Industry In-Focus

Taiwan's First Hand Tools Research and Testing Center Opens in Taichung on May 31(photo taken by Sung Chien-sheng)

Taiwan's First Hand Tools Research and Testing Center Opens in Taichung

Jul 23, 2019

In response to upgrading Taiwan’s hand tools industry and localizing services to the industry chains, China Steel Corporation (CSC), Taiwan Hand Tool Manufacturers' Association (THTMA) , Metal Industries R&D Center (MIRDC), and Corporate Synergy Development Center (CSD) have jointly established the research and testing center for hand tools in Taichung Industrial Park at the opening ceremony on M...

Taiwanese Firms Nabs Redirected Business Amid Trade War</h2>

Taiwanese Firms Nabs Redirected Business Amid Trade War

Jul 15, 2019

The U.S.-China trade war has restructured the global supply chain, giving Taiwanese firms in Southeast Asia the advantage for expanding their production capacity to direct business orders away from China. As the largest fastener supplier in Malaysia, Chin Well Holdings Berhad, the investment holding company mainly focused on domestic sales, and partly exported to Europe. However, under the ten...

Taiwan's Machinery Firms Eye EMO Hannover 2019 - the World's Leading Metalworking Trade Show</h2>

Taiwan's Machinery Firms Eye EMO Hannover 2019 - the World's Leading Metalworking Trade Show

Jul 10, 2019

The biennial EMO Hannover 2019 will debut on September 16 in Hannover, Germany. As one of the world's largest trade fairs, it is considered a must-attend fair for Taiwanese machinery firms primarily focusing on exports. Apart from the registration of individual firms, Taiwan External Trade Development Council (TAITRA) and Taiwan Association of Machinery Industry will both send delegations to exh...

Supplier News

Chang Loon Industrial Co., Ltd.</h2><p class='subtitle'>Chang Loon Diversifies Wrenches with Patented Color Rings</p>

Chang Loon Industrial Co., Ltd.

Chang Loon Diversifies Wrenches with Patented Color Rings

Sep 05, 2019

Chang Loon Industrial Co., Ltd. is a professional maker of wrenches, gear wrenches, related tools and accessories, having made a name for itself by focusing on two industries: DIY hardware tools and automotive repair tools. Since 2004, Chang Loon has embedded its color ring trademark, -coming in red, blue, yellow and orange on the box end of the wrench. Please identify the red, blue, yellow, a...


Guan Yu Industrial Co., Ltd.</h2><p class='subtitle'>Guan Yu boasts forged parts, industrial gears, linear motion system slide blocks, auto and motorcycle forged parts, forged hardware and more.</p>

Guan Yu Industrial Co., Ltd.

Guan Yu boasts forged parts, industrial gears, linear motion system slide blocks, auto and motorcycle forged parts, forged hardware and more.

Sep 05, 2019

Founded in 1971, Guan Yu Industrial Co., Ltd. supplies hand tools, forged mechanical blank parts and forging services, making the firm one of the most experienced and well-equipped players in Taiwan specializing in precision closed-die forging manufacturing. To meet increasing demand for forged auto and motorcycle parts and accessories, the firm has gradually diversified its services to custom...


Deusic Autoparts Co., Ltd.</h2><p class='subtitle'>All kinds of fuel filters, air filters, oil filters, transmission filters and filter elements</p>

Deusic Autoparts Co., Ltd.

All kinds of fuel filters, air filters, oil filters, transmission filters and filter elements

Sep 05, 2019

Established in 2001 in Taiwan, Deusic Autoparts Co., Ltd. professionally manufactures and distributes fuel filters for automotive use, having expanded their market reach into Asia, Europe, and America. With two production lines in Taiwan, as well as an approximately 3,300 square-meters warehouse and distribution center, Deusic offers a diverse inventory to fulfill clients’ needs. All Deusic’s pro...


Insiders' Views

Hong Kong Lighting Fair(Spring Eidition) Exhibitor TUYA showcases the latest application of Bluetooth mesh.

Latest Bluetooth Tech Updates Geared for Smart Lighting, Cities and Wireless Devices

May 07, 2019

Founded in 1998, Bluetooth Special Interest Group (SIG) is a non-profit trade association that oversees Bluetooth® technology. As it supports more than 34,000 member companies, the Bluetooth SIG promotes collaboration among its members to create new and enhanced specifications, extend technology, drive global interoperability through world-class product certification programs, and develop brands ...

2019 Hong Kong Lighting Fair(Spring Eidition)smart lighting prospects look good IoT and artificial intelligence into focus,attracts approximately 21,000 buyers.

HK Int'l Spring Lighting Fair Takes Smart, Eco-Friendly Trends to New Heights

May 07, 2019

The 11th Hong Kong International Spring Lighting Fair, hosted by the Hong Kong Trade Development Council, was held at the Hong Kong Convention and Exhibition Centre from April 6 to 9. This year's Spring Light Show attracted more than 1,430 exhibitors from 9 countries and regions to provide a convenient procurement platform for exhibitors and buyers, attracting approximately 21,000 buyers from ...

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...


Exhibition Highlights

VietnamWood to run Sept. 18-21 with record number of exhibitors and 40% more exhibition space.</h2>

VietnamWood to run Sept. 18-21 with record number of exhibitors and 40% more exhibition space.

Aug 20, 2019

The 13th edition of Vietnam International Woodworking Industry Fair (VietnamWood 2019) and Vietnam International Furniture Accessories, Hardware & Tools (Furnitec 2019) will run in tandem on September 18-21 at Saigon Exhibition & Convention Center (SECC), Ho Chi Minh City, Vietnam. VietnamWood is officially organized by Ministry of Industry & Trade – Vietnam National Trade Fair & Advertising C...

Foreign Buyers Exceeds Previous Years at Taipei AMPA 2019 6-in-1 Show</h2>

Foreign Buyers Exceeds Previous Years at Taipei AMPA 2019 6-in-1 Show

Aug 13, 2019

Post-Show Overview The 2019 Taipei AMPA, AutoTronics Taipei, Taiwan International Intelligent Transportation Show, and Taiwan EVS was held on April 24 to 27, while the Taiwan International Motorcycle Industry Show and Taiwan International Car Tuning & Car Care Show took place between April 25 and 28. The Taipei AMPA 2019 6-in-1 Show wrapped up successfully, seeing the attendance of 1,340 exhib...

EISENWARENMESSE - International Hardware Fair Cologne 2020: Top result after early bird bookings</h2>

EISENWARENMESSE - International Hardware Fair Cologne 2020: Top result after early bird bookings

Aug 02, 2019

The first early booking phase of the EISENWARENMESSE - International Hardware Fair Cologne (1 to 4 March 2020) closed with an excellent result: By 31 May, companies had secured their participation in the global leader of the hardware industry at preferential rates. Interest this year was especially high, as seen by the increase in the list of participating companies as of the reporting date of ne...