TAIPEI, Taiwan--(BUSINESS WIRE)--Leading international research institutes have found that automotive electronics account for around 23% - 30% of the total cost of manufacturing a car, rising to 50% - 60% in the case of luxury models. The new energy technology used in the motor vehicles of the future will be particularly closely linked to automotive electronics technology. In 2009, mainland China became the world's largest car market; the number of motor vehicles sold in China is expected to reach 16 million in 2010. This in turn will stimulate the growth of the automotive electronics market in mainland China, the total value of which is forecast to rise to nearly 200 billion Yuan. The mainland Chinese automotive electronics market has posted an annual growth rate in excess of 30% for five years in a row; by 2012, this market is expected to be worth over 300 billion Yuan a year.
Taiwan has a highly competitive automotive electronics industry, able to supply a wide range of high-end products, and with strong product innovation capabilities; Taiwanese companies are able to supply innovative system and modular products and services, including rear-view camera systems, radar sensing systems, blind-spot warning systems, vehicle imaging systems, vehicle navigation systems, etc. Many of these products are already in widespread use in high-end vehicles. Taiwanese firms have also been working actively to develop "smart car" products for the mass market, including smart car systems, fleet management systems for commercial vehicles, electronic systems for electric vehicles, in-car system service centers, power management system for vehicles powered by alternative energy sources, etc.
The car market in mainland China is fiercely competitive; product differentiation is vital for vehicles in the same class, and advanced driver safety aids are very attractive to consumers. In the longer term, mainland Chinese automotive electronics firms will be able to benefit from Taiwan's experience in the actual on-road use of these new applications, and Taiwanese and mainland Chinese companies will be able to work together to develop the international automotive electronics systems market, complementing one another's strengths and striving to upgrade themselves. Taiwanese companies can work together with their mainland Chinese counterparts to build a bright future for the automotive electronics industry.
It is anticipated that, through the exchange of ideas and the formation of collaborative partnerships, Taiwan and mainland China will be able to cooperate effectively on automotive electronics development and purchasing. The ECFA Early Harvest List includes a large number of automotive components; for more information about investing in Taiwan, visit the InvesTaiwan website at http://investtaiwan.org.
Department of Investment Services, Ministry of Economic Affairs, R.O.C.
Snow Tsao, +886-2-2389-2111 ext. 613