Taiwan auto parts exports grew 7.9% in 2011 to a new high of NT$184.8 billion (US$6.16 billion) despite the global recession causing fluctuating uncertainties. In 2010 the island`s auto parts export sales increased 22.6%.

Auto parts export sales have grown every year in the past eleven years except for 2009 when the impact of the global recession caused an 8.5% drop.

Taiwan is a relatively small island with a total population of some 23 million people. All local vehicle assemblers cooperate with a few international car brands. And the island`s domestic automobile market did not have its own car assembly industry until a few years ago, when a local automotive conglomerate started to develop car models for markets in Taiwan and China.

The situation is much different in the auto parts industry where small to medium-sized enterprises (SME) comprise the island`s edge in global competition, manufacturing a large variety of products in small batches.

According to the most informed observers and buyers, the efficient subcontract supply network in Taiwan enables individual makers to specialize in certain lines, which helps Taiwan’s auto parts suppliers manufacture a broad range of products flexibly at low production costs and achieve a rapid development time.

And the island`s auto parts suppliers have another advantage: dividing the labor between Taiwan and China that allows plants on both sides of the Taiwan Strait to meet the wide range of pricing, quality, quantity and lead times customer needs.

Due to its extensive subcontractor network, Taiwan can accept a large variety of orders in small batches for performance parts buyers.

In 2012, Taiwan`s auto parts makers continue to focus on manufacturing products with a maximum cost/performance (C/P) value.