Taiwanese automotive components maker Kian Shen Industry says it is experiencing a surge in demand driven by a wave of electric bus replacements in Taiwan and rising orders from commercial vehicle customers, as the company prepares to trial a new lightweight chassis technology it believes could reshape parts of the industry.
Speaking in an interview with DIGITIMES, the company's general manager Chiung-Chih Tseng said order intake has "exploded" in recent months, with total backlog now exceeding 1,200 electric buses. One single customer alone has placed an order for 500 units, he said, underscoring the speed of the market's recovery after several subdued years.
To keep up with demand, Kian Shen has begun reallocating personnel across divisions and launching intensive technical training programs. The company also plans to introduce a two-shift production system in the fourth quarter of 2026 to expand manufacturing capacity.
Tseng said the long-term outlook for electric buses in Taiwan remains highly promising. Of roughly 15,000 public buses currently in operation across the island, only about 3,000 have been electrified so far — leaving what he estimates as a replacement opportunity of around 12,000 vehicles.
Beyond urban buses, he added, long-distance coaches and tour buses are also expected to transition gradually toward electrification or hydrogen power, particularly as the government pushes pilot programs for domestically developed hydrogen bus platforms. Kian Shen believes it is well-positioned to capture chassis-related contracts tied to these initiatives.
A central pillar of the company's strategy is a newly developed lightweight chassis system, which has recently secured patent protection. Tseng described the product as both cost-competitive and capable of significantly reducing fuel consumption for trailer operators — a shift he acknowledged could be disruptive to existing industry structures, even as the company pursues a cautious rollout strategy.
To prepare for mass production, Kian Shen plans to invest more than NT$100 million (approx. US$3.1 million) in capital expenditures in 2026, including the import of a fully automated smart manufacturing system from Japan. The equipment — one of only four such systems globally and the only one of its kind in Taiwan — is expected to create a high barrier to entry and strengthen the company's position in lightweight vehicle components.
Alongside chassis development, Kian Shen is also investing in what it describes as Taiwan's first fully localized electric bus shared-platform chassis program, positioning itself as a key coordinator within the island's electric-vehicle supply chain.
Tseng acknowledged that heavy research and development spending has weighed on profitability in 2025 and the first half of 2026. However, he said the company expects performance to improve in the second half of 2026 as prototype chassis units begin shipping and commercialization accelerates. Kian Shen is also in talks over new large-scale projects tied to a national electric commercial vehicle initiative.
China operations
In its China operations, the company is adapting to intense competition and weakening domestic demand by shifting toward export-oriented production.
At its Fuzhou subsidiary, Kian Shen Industry has secured orders for electric vehicle battery housings from a major German automaker. Tseng said the contract spans both Chinese and European markets and is expected to enter mass production in the fourth quarter of 2026, with initial volumes exceeding 7,000 vehicles. He added that the program is structured as a long-term agreement, with shipments potentially surpassing 300,000 units by 2028–2029.
Separately, the company's Guangzhou operations have won a significant export order for Japan in the electric vehicle segment. Under the deal, chassis components produced in China will be shipped to Japan for final assembly, with annual volumes expected to reach 100,000 vehicle sets in the initial phase.
Tseng said these overseas contracts underscore Kian Shen's growing role in global electrified vehicle supply chains, even as the company navigates increasing competition and structural shifts across both domestic and international markets.
Article translated by Elaine Chen and edited by Jack Wu
