More government policies are expected in the Chinese EV market to boost sales within the next two years. Both Taiwan- and China-based automotive suppliers are optimistic about the market outlook.
According to China-based Hirosawa Automotive Trim, the China Passenger Car Association (CPCA) has said the Chinese government will likely release consumption vouchers and take other measures to facilitate car sales. The average price per EV and sales numbers are expected to increase, benefiting Hirosawa's business.
The company said the proportion of EV orders in its total sales has grown from 9% to 16% month by month this year.
Taiwan-headquartered SuperAlloy Industrial (SAI) said global EV sales are expected to grow by 32%, reaching 17 million cars. Since BMW and Mercedes-Benz plan to establish a joint venture to deploy a high-power charging network in China, it is evident that premium carmakers will shift their focus to EVs to serve the rising needs.
SAI said EVs will likely account for 20% of its revenue in 2024. Demand for EV's forged wheels is expected to drive the company's long-term growth. Therefore, SAI is optimistic that its operation will stay promising.
Iron Force Industrial, another Taiwan-based car parts supplier, said the China Association of Automobile Manufacturers (CAAM) has estimated that China will likely reach 30 million cars in sales this year, a record high and a 10% increase from 2022.
Iron Force reported an 8% year-over-year growth in automotive sales last month due to a stable delivery increase in airbags, airbag curtains, and other products. Demand from the company's global car safety component customers remains positive. It also has co-developed more new safety products with customers.
Iron Force is optimistic about the outlook for the fourth quarter of 2023. The company said increasing safety components in every car will encourage more orders. In addition, Iron Force plans to rearrange overall production with its sites in China, Taiwan, Poland, and other locations in response to global automotive supply chain restructuring. It will continue to improve material procurement strategies and enhance production efficiency to facilitate future operations.
