Car sales in Tai­wan forecast at 420,000 for this year

The China Post - - TAIWAN BUSINESS -

The num­ber of cars sold in Tai­wan in 2015 is ex­pected to re­main at around 420,000 units, lit­tle changed from last year, Yu­lon Mo­tor Co. ( ) Pres­i­dent Yao Chen- hsiang ) said Wed­nes­day.

At an an­nual gen­eral meet­ing, Yao said the growth of the lo­cal car mar­ket is be­ing af­fected by a slow­ing global econ­omy.

In ad­di­tion, lo­cal car ven­dors are fac­ing stiff com­pe­ti­tion from im­ported ve­hi­cles be­cause of the

( dep­re­ca­tion of the Ja­panese yen and the euro, he said.

Yu­lon Mo­tor is the flag­ship com­pany of Tai­wan’s auto gi­ant Yu­lon Group ( ) , which works with Ja­panese part­ners to roll out cars un­der the Nissan and Mit­subishi brands in Tai­wan.

Fol­low­ing a 6.1 per­cent yearon-year and 0.5 per­cent monthly drop in May, car sales in Tai­wan have been pick­ing in June as con­sumers have been rush­ing to place their or­ders ahead of the tra­di­tional Chi­nese Ghost Month, which falls in Au­gust and Septem­ber, Yao said.

May is a usu­ally a slow pe­riod in the lo­cal auto sales in­dus­try as many in­vestors tend to re­serve cash to pay taxes and avoid buy­ing big ticket items like cars.

In ad­di­tion to man­u­fac­tur­ing cars in part­ner­ship with Ja­pan’s Nissan Mo­tor and Mit­subishi Mo­tors, Yu­lon owns a sub­sidiary, Lux­gen Mo­tor Co. ( ), which sells cars un­der the brand Lux­gen.

Yao

said Lux­gen’s U6 Turbo ECO Hy­per hatch­back, which was un­veiled in April, has been gain­ing pop­u­lar­ity in the lo­cal mar­ket, and the brand is ea­ger to ex­pand its prod­uct line in a bid to gain a higher mar­ket share. Cur­rently, only four Lux­gen mod­els are avail­able in the mar­ket.

In the meet­ing, share­hold­ers ap­proved a pro­posal for Yu­lon Mo­tor to is­sue NT$0.7 (US$0.02) in cash div­i­dend for 2014. Last year, the au­tomaker posted NT$2.25 bil­lion in net profit, or NT$1.51 in earn­ings per share.

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