NewsAuto parts suppliers’ sales mixed amid chip shortage

September 13, 2021by jasongyuen@gmail.com0

Sep 13, 2021 (Taipei Times) – Auto parts suppliers last week reported mixed sales performances for last month, as shipments of gasoline-powered and electric vehicles continued to be affected by tight auto chip supply for tier-one parts suppliers and automakers.

The primary situation to keep an eye on would be the production recovery of major automakers amid a potential increase in auto chip supplies in the fourth quarter, as well as the COVID-19 situation in Malaysia, which is a major center for chip testing and packaging, Yuanta Securities Investment Consulting Co (元大投顧) said in a research note on Friday.

Cheng Shin Rubber Industry Co (正新橡膠), which sells its tire products under the Maxxis brand, saw its sales drop 18.3 percent from a year earlier to NT$7.68 billion (US$277.16 million); sunshade supplier Macauto Industrial Co (皇田工業) posted a decline of 15.51 percent to NT$338.88 million; and Chian Hsing Forging Industrial Co’s (江興鍛壓) sales were 5.26 percent lower at NT$197.69 million, the companies’ regulatory filings showed.

Auto parts suppliers’ sales mixed amid chip shortage
A worker assembles vehicle parts at a factory in Xinyu, China, on April 27 last year.

However, Tsang Yow Industrial Co (倉佑實業), which makes powertrain components, saw sales rise 2.08 percent year-on-year to NT$161.99 million; metal sheet and bumper manufacturer Tong Yang Industry Co’s (東陽實業) sales gained 4.04 percent to NT$1.49 billion; and Hiroca Holdings Ltd (廣華控股), which focuses on interior trim, posted an 8.41 percent increase to NT$554.08 million.

Kian Shen Corp (江申工業), a supplier of body frames, beams and suspension parts, reported that sales rose 12.33 percent to NT$91.64 million, and Hota Industrial Manufacturing Co (和大工業), which makes gears and shafts for transmissions, posted an increase of 48.56 percent to NT$625.08 million.

Meanwhile, Global PMX Co Ltd (智伸科), a provider of dual-clutch transmissions and direct-injection parts for gasoline motors, reported revenue growth of 3.95 percent year-on-year to NT$713.68 million, while Hu Lane Associate Inc (胡連精密), which makes electrical terminal components for cars and motorcycles, saw revenue increase 25.59 percent to NT$375.49 million.

Wire harness maker BizLink Holding Inc’s (貿聯控股) revenue rose 23.57 percent to NT$2.48 billion; diode maker Pan Jit International Inc (強茂) increased 34.47 percent to NT$1.23 billion; and electrical terminal supplier K.S. Terminals Inc (健和興端子) grew 32.09 percent to NT$383.42 million.

“Generally, electric vehicle and electrification-related supply chain firms saw sales grow in August,” Yuanta analysts said in the note.

The auto chip shortage has forced automakers worldwide to trim production, pushing passenger vehicle sales in China to fall 15 percent year-on-year to 1.45 million units last month, while sales of light vehicles in the US dropped 17 percent to 1.09 million units, Yuanta said, citing industry tallies.

“Given tighter than expected auto chip supply in the third quarter of this year, we cut our forecast for global light vehicle production to 74.9 million units for 2021, implying growth of 6 percent year-on-year compared with our estimate of 9 percent growth previously,” Yuanta analysts said. “Amid low car inventory levels in the US and China and with high used car prices, we believe slower-than-expected car sales are mainly owing to supply chain disruptions rather than a car demand decline,” they said.

Overall, Yuanta remains positive on the outlook of Taiwanese companies in the electric vehicle and electrification-related businesses, such as BizLink, KST and Pan Jit, as well as those benefiting from a recovery in demand for cars, such as Global PMX and Hu Lane, the note said.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is registered on as a development site.