cens logo

Legislating Automotive Policies Can be improved

Jan 21, 2020 | By

The market share of domestic cars has been declining in recent years, from 83% at the highest peak to 53% last year. National industry players are all worried about starting from this year to the legislators and the Ministry of Finance to reduce tariffs on auto components. The Ministry of Economic Affairs had proposed 23 components, and finally adjusted them to nine items without domestic production system. The tax rate was reduced from the original range of 5% to 17.5% to 0 to 10%, and the assessment of tax expenditure considered that the tax could show a net increase. It was also negotiated by the inter-ministerial meeting, but it was not discussed in the Legislative Yuan until late November. In the end, because car dealers may not cut prices and the general election is imminent, legislators are too busy to consider factors such as elections.

The problem is that compared with the current rapid loss of domestic car market share, the domestic car market share fell below 60% in 2017 and fell to 52% in the first eight months of this year. The market share in October and November has been surpassed by imported cars Less than half (death cross), even the small domestic market of domestic cars has lost the most basic economic scale. I am afraid that it will follow in the footsteps of the closure of the domestic auto industry at the end of 2017 due to improper auto tariff policies in Australia. The supply chain of related components has caused huge impacts, including the sharp decline in the output value of the manufacturing industry, and the large number of job losses of the automotive industry. It cannot be ignored.

Looking back at the adjustment of tariffs on automobiles and components, China's accession to the WTO in 2002 has reduced import tariffs on automobile imports from 30% to 17.5%, which are indeed lower than Malaysia (30%), India (60%), Pakistan (35%), Mexico (35%), Thailand (above 70%) and other countries; but after 17 years, the tariffs on imported parts have not been reduced in proportion to the vehicle tax rate. It has become one of the factors that caused the sales of imported cars to surpass that of domestic cars. Compared with Japan 's zero-imported engine parts, 8% in South Korea, 10% in China, Thailand, and Malaysia, and the imposition of a higher tariff is equivalent to encouraging multinational automobile manufacturers to establish production plants in their homeland. International rivals.

The Ministry of Finance stated that the original tariff on auto parts (such as engines) was set at 17.5%, mainly considering that engines are the key components of automobiles. It is indeed reasonable to reserve space for domestic production and research and development of components, but for more than a decade, domestic still The inability to produce some key components and rely on imports proves that protection has not fully achieved its purpose, but has made domestic cars less competitive due to the protection of components (the same tariff rate). As for the parts that domestic manufacturers can produce, they have the advantages of a small number of diverse and flexible manufacturing, high quality and cost competitiveness. After continuously investing in research and development and upgrading technology, they have already become internationally competitive, and the output value even exceeds domestically produced vehicles. Exports account for more than 90%, and the amount of exports each year continues to expand. In 2017, it reached a record high of 214.9 billion yuan. Therefore, it has sufficient strength to face the challenge of reducing tariffs on components and parts. Negotiations were made to reduce tariffs on parts and components to increase exports.
Therefore, based on the international norms of "tariffs allow discrimination, no mainland tax", and the reason that the competitiveness of finished products is lowered due to the high cost of component tax burdens, domestic automakers are not asking the government to return to the era of tariff protection. In a competitive market, the cost level is critical. The government has a responsibility to help the domestic car industry reduce costs through the reduction of parts tariffs, and pass legislation as soon as possible and apply retroactively.


Industry Reports

Machinery Expecting 10% of Growth in 2020</h2>

Machinery Expecting 10% of Growth in 2020

Jan 20, 2020

The U.S.-China trade friction is about to come to an end. Chairman of the Taiwan Machinery Association Alex Co, pointed out that this year, with the effect of the second production base in Southeast Asia gradually growing, it is expected that the prosperity of the machinery industry will pick up month by month from the end of the first quarter, hoping to return to positive growth, with an increas...


Taiwan Fastener Industry's Exports  in Q1-3 2019</h2>

Taiwan Fastener Industry's Exports in Q1-3 2019

Jan 20, 2020

The statistics of main industries in Taiwan in the first 3 quarters of 2019 have been published. The first 3 quarters of 2019 saw decline in both volume and value of steel fastener export in Taiwan. This is mostly affected by two global incidents, one being the U.S./China trade war and the other being the regional trade conflict between Japan and South Korea. As shown in the following table, T...


The exports in Dec 2019 with an increase of 0.9% </h2>

The exports in Dec 2019 with an increase of 0.9%

Jan 20, 2020

Terminated even 13 black! The Ministry of Economic Affairs announced today (20) that the export order value of December last year was 43.78 billion U.S. dollars, an annual increase of 0.9%, in line with expectations. However, the total export orders for 2019 remained negative, with a cumulative amount of US $ 484.56 billion, an annual decrease of 5.3%. The Statistics Department of the Ministry...



Industry In-Focus

Taiwan Machinery Grab Biz Opportunity in India</h2>

Taiwan Machinery Grab Biz Opportunity in India

Jan 15, 2020

Organized by the Indian Machine Tool Association, the 2020 Indian International Metal Forming Machinery Exhibition (IMTEX FORMING) is the most influential metal forming machinery exhibition in Southeast Asia. The exhibition period is from January 23 to 28, and it will be held at the Bangalore International Convention and Exhibition Center in India. Out. In 2018, India was the fourth largest ex...


Ministry of Economy approves seven SMEs to invest 1.4 billion yuan</h2>

Ministry of Economy approves seven SMEs to invest 1.4 billion yuan

Jan 15, 2020

Investment Taiwan Office approved today (15) seven small and medium-sized enterprises to expand their investment by approximately 1.4 billion yuan for transformation and upgrading, including Taiwan Precision Gear Industry, Yangsteel Casting, Deyu Enterprise, Pujiakang Xingye, Xie Titanium Technology, Xinmei Industrial and Shangshang Hong company. The Ministry of Economic Affairs pointed out that...


Chunyu Gear up for Upcoming Year's Market  </h2>

Chunyu Gear up for Upcoming Year's Market

Jan 14, 2020

Chunyu (2012), a major screw and wire factory, started to expand its production lines at home and abroad. It is expected that the financial contribution of the Year of the Rat will increase significantly. Chairman Lin Huizheng is confident in the operation of the Year of the Rat. Spring rain can enter the initial harvest period in the new year, and future development prospects are attracting atte...



Supplier News

Londa's LED Increased with More Automotive Lighting Market </h2>

Londa's LED Increased with More Automotive Lighting Market

Jan 16, 2020

In 2018, European and American international car manufacturers have automatically turned on the daytime running light function in new-style cars to reduce the accident rate. However, the trend of LED lights has become a major trend. In addition, active steering in advanced driver assistance systems (ADAS) Both headlights (AFS) and auto-adjustable headlight systems (ADB) have introduced LEDs one a...


A-Tina Co., Ltd.</h2><p class='subtitle'>Home Pair Tool, Power Tool Accessories, Household Tool Kit</p>

A-Tina Co., Ltd.

Home Pair Tool, Power Tool Accessories, Household Tool Kit

Jan 10, 2020

Founded in 1975 in Taichung, A-Tina Co., Ltd. is an industry leader in hand tools. With around 45 years of manufacturing experience, it can provide customization in accordance to client requirements. The company offers various tool cases in materials such as hollow molding in plastic, aluminum, iron, and nylon. and a wide variety of tool kits for different project purposes, including auto repair,...

A-TINA TOOLS COMPANY LTD.


Lun-Yun Enterprise Co Ltd</h2><p class='subtitle'>Crimping tools, Cable Cutters, Cable Strippers, Battery Crimping Tools</p>

Lun-Yun Enterprise Co Ltd

Crimping tools, Cable Cutters, Cable Strippers, Battery Crimping Tools

Jan 10, 2020

Lun-Yun Enterprise Co., Ltd. set up in 1979 in central Taiwan, sells electrician tools worldwide under its own “OPT” brand, boasting that it has become the first choice of buyers everywhere. The company produces a wide variety of hand tools including manual, hydraulic, and battery-powered crimpers, wire/cable cutters, strippers, electric hydraulic punches, hydraulic knockout punches, hydraulic en...

LUN-YUAN ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

LED NEXT STAGE 2020

LED NEXT STAGE 2020

Jan 21, 2020

Mar. 3 (Tue.) - 6 (Fri.), 2020 TOKYO BIG SIGHT LED NEXT STAGE will present a vast array of the newest LED and OLED lighting products that are essential elements of comfortable lighted spaces in offices, shops, and homes. It will also feature the latest devices, parts, materials, control systems, measuring equipment. LED NEXT STAGE offers a perfect opportunity to promote your latest products an...


Taichung International Exhibition Center housed the complete spectrum of high-grade products for multi-sector applications available for direct orders, which is expected to reach more than NTD$25 billion (Photo photographed by Sung Chien-Sheng)

THS 2019 Polishes Reputation as the Place to Go for Hardware Industry

Jan 10, 2020

Turnout surges despite turbulent economy Taiwan Hardware Show (THS), the best business platform for the hardware industry in Taiwan, took place at the Taichung International Exhibition Center from Oct. 17th to 19th. The show saw participation from 430 domestic and foreign exhibitors, taking up more than 1,000 booths in total, the highest record in the show’s history. Last year was the seven...


ITES 2020: Focus on the Development Trend of Manufacturing Industry,  Gain Insights for South China Market</h2>

ITES 2020: Focus on the Development Trend of Manufacturing Industry, Gain Insights for South China Market

Jan 10, 2020

Shenzhen International Industrial Manufacturing Technology Exhibition (ITES 2020), also called the 21st Shenzhen International Machinery Manufacturing Industry Exhibition (SIMM), is going to hold in China’s innovation center & manufacturing hub from March 30th to April 2nd, 2020. The exhibition covers 12 halls with 240,000 s.q.m area at Shenzhen World Exhibition & Convention Center (Shenzhen Worl...