By R. Natarajan, Managing Editor & Publisher
Taiwan is among the fastest growing nations in the Asian region, with its strong auto components sector. With a population of just 22 million, the country exports 60 per cent of its auto components production to different countries, including the US and China.
This was stated in an exclusive interview to MOTORINDIA by Mr. Reyming Tu, Deputy Executive Director, Exhibition Department, Taipei World Trade Center, on the sidelines of the roadshow on EMMA Expo India 2012 organised jointly by TAITRA in Chennai.
Considering the vast potential available in India, Taiwan is keener than its rivals in the field to strengthen its relationship with the Indian auto component majors. Since the Taiwanese market is not that big, the country is eager to export more of its output to India. In 2011, the vehicle output in Taiwan hit a historic high of $20.3 billion, a 10 per cent increase over the previous year.
The auto parts industry contributed products worth $7.54 billion, of which a huge 82 per cent was exported. International competitiveness is driven by its flexibility and readiness to invest in R&D and new technology.
He said that, with its strengths in ICT, Taiwan has won acclaim for its innovative machinery development. Ready service and competitive prices offer added value and increased the export volume. Of the overall export of machinery products, machine tools topped the list in 2011 with 35.1 per cent growth over 2010. Plastics & rubber producing machinery came second with a 14.4 per cent growth, and bearings, gears & ball screws ranked third, with their combined exports amounting to $21.1 billion. Taiwanese companies also make special efforts to cut energy consumption and reduce carbon emissions. Though India offers a big market, many Taiwanese firms are not able to have any proper access nor suitable partnership with the right Indian partners. If this issue is sorted out satisfactorily, there will be scope to widen the relationship between India and Taiwan in the years ahead.
With India proving a very important market for Taiwan, there is a win-win situation for both, particularly if the FTA agreement materialises. Further, with the establishment of more banks and financial institutions in India, Taiwanese companies can benefit a lot.