Taiwan targets UAE for export of auto parts, hand tools

Taiwan's auto parts and hand tool industries continue to enjoy sustainable growth in world markets such as the Middle East thanks to its expertise and focus on creating new products through synergy with other strong sectors in the country. Taiwan is particularly strong in aftermarket products and solutions, especially those spare parts needed after auto accidents. The industry is also developing the relatively new fields of telematics and smart tools, taking advantage of Taiwan's highly developed electronics sector.

Export-oriented

After several decades, Taiwan's auto parts industry has acquired the ability to produce varied products in small quantities as well as considerable product development capabilities. Most manufacturers, especially those focused on lamps, bumpers or rubber & plastic parts, develop products mainly for the aftermarket, which accounts for the 80 to 90% of global aftermarket supplies. Collision parts, auto metal plates and back mirrors made in Taiwan have also captured 90% of world market. Furthermore, Taiwan is world number 1 in mold manufacturing technology, as well as in mold quantity and quality.

The small size of the domestic market has pushed local manufacturers into global competition where Taiwanese companies are even entering the OEM and IC design sectors. The great majority of makers have adopted partial process automation and developed FMS (flexible manufacturing systems) that allow the production of small batches of all kind of products that meet international quality standards.

Trade between Taiwan and the UAE is burgeoning and grew about 7.4 per cent to $7.2 billion (Dh26.42 billion) in 2014 compared to $6.7 billion (Dh24.6 billion) the previous year.

Taiwan's auto components industry total output in 2014 amounted to $6.6 billion USD, which marks a nearly 5% growth from 2013. Meanwhile, Taiwan's auto parts exports to the United Arab Emirates (UAE) are on the rise amid growing recognition of their advantages in the Middle East Market, exceeding USD $115 million in 2014, a 12.16% increase YoY.

Fully realized supply chain

Taiwan possesses a complete auto parts supply chain; most of the firms are small and medium size enterprises (SMEs) that have created a highly integrated supply network. The industry is characterized by its extensive center-satellite systems and seamless cooperation between central and satellite factories. This system, enhanced by a wide network of clusters scattered throughout the island, enables production flexibility, a diversified product range and low production costs. There are currently around 2,800 auto parts and accessories makers in Taiwan, with around 300 of them providing original equipment.

The new world of telematics

Telematics is the integration of telecommunications, informatics, and automotive electronics to satisfy such needs as convenience, traffic information, communication, entertainment, safety, and business. This promising new sector is linked with the so-called Intelligent Transportation System (ITS), which is playing a big role in government plans for enhancing the traffic control around Taiwan. The unbeatable ICT credentials of Taiwan continue to play a major role in enhancing auto parts and innovation in interactive automobile systems, thus boosting cooperation between traditional auto parts makers and the giants of electronic and computer technologies, who see an opportunity for diversifying their business in the new era of smart vehicles.

Though lamps and auto sheet metal after collision parts are still the kings of Taiwanese auto parts in the world market, the outstanding R&D capabilities of the electronics industry are making themselves felt in global markets with the introduction of all kind of telematics devices, from traditional GPS systems to TFT displays, Front Collision Warning Systems, CMOS cameras, Engine Control Units (ECU), Personal Navigation Devices (PNDs) or Head-up displays (HUDs).

It is expected that in 2016, about 90% of all new cars will be equipped with wireless-communication equipment or V2V (vehicle to vehicle) communication devices, and Taiwan is already working in this direction thanks to strong government support and collaboration between manufacturers and research institutes.

Taiwan hand tools see growing exports, new business platforms

In line with their counterparts in the auto components industry, Taiwan's hand tool makers are also witnesses increasing global acceptance. In 2014, Taiwanese hand tool makers saw export volume of USD $2.82 billion, which represents a 9% growth from 2013. These figures point to Taiwan's sustained development in recent years.

Around 80% of Taiwan's 600 hand-tool manufacturers are gathered in Central Taiwan, providing a collaborative and fast supply chain for the whole industry, all falling within a 10 km radius. The flexibility of its supply chain allows Taiwanese hand tool companies to meet any demand of the manufacturing process, such as molds, heat treatment, surface treatment, and plating and packaging. Their quality-oriented work processes leads to high value products and continuous innovations, creating novel materials as well as multifunctional and digital tools to carve out new product paths while meeting the demands of the market.

Other types of Taiwan products gaining notice are explosion-proof and digital tools, taking advantage of Taiwan's strong electronic industry and government-backed research institutions like Taiwan's Metal Industries Research & Development Centre (MIRDC). Taiwan-made digital tools contributed an estimated US$16.67 million to the industry's total output in 2014.

Participation in global trade fairs

Taiwan brands are constantly working to strengthen their global presence by attending world class trade fairs such as Automechanika Dubai 2015. At this year's show, buyers will view a range of Taiwan-based companies in fields ranging from auto lamps, tires, digital torque wrench, pneumatic tools and smart TPMS (tire pressure monitor systems), those including:

Airboss

AIRBOSS AIR TOOL CO., LTD. is professional at developing and manufacturing professional pneumatic tools. In order to produce more stable pneumatic tools with higher precision, we have adopted the modern CNC Machines and the newest, world-wide leading and super vacuum-foundry technology.

ECLATORQ

"Eclatorq" is the first professional digital hand tool in Taiwan, founded in 2006, and has integrated 11 leading hand tool companies and IT resources into the production of digital hand tools - The Smart Tool Standard. We fuse the tools of today with the technologies of tomorrow to create a new generation of high tech tools. Built from almost a decade of high tech R&D and innovation, the Digital Tools not only provide users with unprecedented levels of control, accuracy and convenience at tremendous value.

E-LEAD

E-Lead was established in 1983, and was later listed on the Taiwan's Stock Exchange on February 4, 2002. After 30 years of continued development, E-Lead has successfully created innovative products to compete in the Head Unit Infotainment/ Navigation System, Rear-seat Entertainment, Car Sensor and Accessories, and other electronic car accessory markets. E-Lead's goal is to provide products that provide information to customers to ensure their safety as well as adapt to their changing needs.

Federal

With state-of-the-art technology, strict quality control, and highly regulated safety standards, Federal continues to develop innovative, quality tires for the UHP, SUV, LTR, and PCR lines.Bolstered by new and better UHP, SUV and winter tires, and its ever improving full range of other high quality tires, Federal is presently enjoying tremendous growth. The company will continue to focus on and constantly improve customer satisfaction, on time and prompt delivery, and after-sales services.

Kenda

Think all tires look the same? Look closely and you'll find that Kenda Tires perform to the highest standards across several categories. For the past 50 years, Kenda has been building a better tire for life's most demanding activities. Actually, they overbuild them to ensure you succeed safely in everything you do. Kenda is paving the road to a better tire. Kenda tires are overbuilt to guarantee solid performance and consistently ensure you get the most out of your investment.

Mobiletron

As a world leader in electronics manufacturing, Mobiletron produces over 1,800 premium quality items of advanced design and construction, specializing in components for the automotive industry, and exporting to over 100 countries worldwide. With headquarters in Taiwan, the company has an international network of offices so that it can serve its global client base effectively, efficiently and with the highest standards of service.

Nankang

Nankang Rubber Tire has the heritage of longest history among tire brands in Taiwan. For 50 years, the company persists in following the corporate motto of "Integrity,Pragmatism, and Innovation" in creating performance and growth.

To cope with the increasingly discerning market demands, Nankang strives aggressively towards the goals of "product innovation with R&D, differentiation from competition, product quality upgrading, customer satisfaction, after-sale service and professional management", in order to offer more and more innovative safety products to all car drivers.

TYC

TYC is one of the world's largest manufacturers of automotive, motorcycle, truck and bus lighting products, a worldwide supplier of lighting products for all functions to both original equipment manufacturers and automotive replacement parts in North America, Europe, Asia-Pacific, Africa and Middle East. Why TYC? It is able to offer the widest selection of automotive lighting available from a single source as well as other automotive collision parts traded by TYC. In addition to the ISO14001, ISO 19001 and ISO/TS16949 quality certification, TYC also has Ford Q1 preferred quality status and has been approved as a full participant of CAPA parts certification program for North America since July 2006.