Page 28 - TTG-Taiwan Transportation Equipment Guide (TTG) 2022-09 Edition

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Industry News

Suppl
Supply chain obstacle test automotive y chain obstacle test automotive
industr
industry in ICE and EVsy in ICE and EVs

By Stephanie Chao
Taiwan’s automotive parts export value in 2021 more than likely to experience diffi culties producing
reached USD$7.98 billion, marking a 14% growth both ICE and electric vehicles (EV).
compared to 2020, significantly seen in exports
destined for China, Mexico, and Germany, which China’s Zero-COVID Policy
on average, saw growth of around USD$40 million.
These statistics show strong demand in the Chinese Since Shanghai’s COVID-19-induced lockdowns
and European automotive supply chains. in Q2, supply chains faced further disruption,
pushing backorders for not only ICE vehicles, but
also electric vehicles as well. While restrictions
However, while demand has significantly
increased last year, the months going into have eased, with the city set to reopen completely
2022 could derail global auto manufacturers’ in June, experts and suppliers have signaled that
expectations, largely caused by the tumultuous last vehicle delivery will be on the backfoot as producers
two years characterized by continued COVID-19 scramble to meet global demand.
lockdowns, rising costs of raw materials, parts, oil
and gas, the Ukrainian-Russian confl ict, prompting According to Economic Daily News reports,
infl ation and squeezing consumer purchasing ability, quoting Laster Tech Group, global auto brands
and signifi cant delays in the chip supply chain. reported having difficulties meeting demand with
empty inventories. For example, Volkswagen Group
said that its new energy vehicles have completely
While industry experts across the board expect
circumstances to improve, especially chip shortages sold out in Europe and the U.S., while Tesla’s
to gradually ease, Paul Lund, head of industrial delivery dates have been pushed to 2023 for
ratings for Europe, the Middle East, and Africa certain models. Both examples signal that despite
at Fitch Ratings, pointed out that once pandemic global auto brands’ best attempts to catch up on
restrictions are lifted at a widespread scale this year, backlogged orders since 2020, demand for vehicles
auto manufacturers are unlikely to be able to meet is still going strong and is unlikely to subside.
the pent-up demand. Raw materials, significantly
metals, are in short supply that manufacturers are