Taiwan-based Tong Yang Group announced its operating results for April 2024 on May 7. The leading car components supplier also revealed that it had purchased land at the Cigu Technology Industrial Park in southern Taiwan to expand production.
Tong Yang bought land with NT$595 million (US$18.3 million) at another industrial park nearby in 2023. As for the purchase announced on Tuesday, the company plans to build a plant for aftermarket (AM) production on the property. The two land purchases cost close to NT$1.6 billion.
According to Tong Yang, demand for AM parts has stayed strong since 2023. Orders continue to grow even in the second quarter of 2024 when sales are usually slow. Crispin Wu, Tong Yang's CEO, has asked the company to accelerate production expansion to satisfy the growing market demand and increase sales.
Tong Yang has developed its active grille shutter (AGS) business. AGS, which can improve wind resistance and save energy, was adopted mostly by high-end vehicle models. It has also penetrated middle- and entry-level cars recently.
According to Tong Yang, deliveries of its AM parts have reached 80 shipping containers daily and about 2,000 containers every month. The company estimated that its annual production of vehicle bumpers will increase by 5% to 9.68 million units in 2024. Production of fenders is estimated to increase by 6% to 5.2 million units.
Tong Yang's consolidated revenue reached NT$2.1 billion last month, up 20% from 2023. It accumulated NT$8.28 billion in consolidated revenue for the first four months of 2024, a 13% growth from 2023. Both annual growth rates were record-high.
In April, Tong Yang's AM business achieved a consolidated revenue of NT$1.51 billion, a 14% growth from 2023. The business unit accumulated NT$6.19 billion of consolidated revenue from January to April, up 17% from last year.
