BMI View: We forecast Taiwan's auto sales growth for 2014 to come in at 8.7%, largely backed by a surge in the commercial vehicle segment. According to the Hong Kong Transport Department (HKTD), auto sales grew by 4.2% year-on-year (y-o-y) in October 2014, a slowdown from the strong 20.8% y-o-y growth seen in the previously month, largely due to the pro-democracy protests (also known as the Umbrella Movement) that began in late September. Auto sales grew by 9.4% y-o-y for the period January-October, and we expect pro-democracy protests to dampen sales for the remaining months of 2014.
Beyond 2015, we are more positive on the outlook for the passenger car segment, underpinned by a de-escalation of the Umbrella Movement and a more positive economic outlook. We also expect some pent-up demand due to a decline in sales in Q414 to spill over into the early part of 2015. As such, we forecast passenger car sales for 2015 to come in at 40,952 units, representing 3.8% growth, slightly higher than the 3.5% growth forecast for 2014.
However, growth will largely be underpinned by the commercial vehicle segment, which has seen a surge in sales over the past seven months (April-October), since the 'Ex-Gratia Payment' Scheme was implemented n March 2014. The scheme is a more heavy handed approach by the government to phase out some 80,000 pre-Euro IV vehicles off the roads over the coming years. In view of a larger number of vehicle owners opting to de-register their older vehicles and replacing them with 'greener' CVs, we expect sales momentum seen in 2014 extending into 2015. This is further supported by the various delays in construction projects in 2014 that will spill over into 2015, and this will also provide a boost to the CV segment. Consequently, we have revised our 2015 CV sales growth forecast to 24.2%, up from 19.3% previously.
Meanwhile, the country's efforts at promoting the electric vehicle segment have yet to gain traction, and according the Hong Kong's...
The Hong Kong Autos Report features the latest data and forecasts covering production, sales, imports and exports.
BMI Research's Hong Kong Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Hong Kong.
- Benchmark BMI's independent automotives industry forecasts on Hong Kong to test other views - a key input for successful budgetary and planning in the Hong Kong automotives market.
- Target business opportunities and risks in the Hong Kong automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Hong Kong.
- Assess the activities and market position of your competitors, partners and clients via our Competitive Landscape Analysis.
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering production, sales and the introduction of new technology or products.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the autos sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series and forecasts to end- 2019 for all key industry indicators (see list below), supported by explicit assumptions plus analysis of key downside risks to the main forecast, including:
Sales and production of motorcycles in units; total production of units; production by vehicle type (including cars, commercial vehicles, trucks and buses); total vehicle fleet size in units; sales by vehicle type, including passenger cars and commercial vehicles; fleet size by vehicle type, including passenger car, commercial vehicles and motorcycles; total vehicle trade balance in units; vehicle trade balance by vehicle type, including passenger car, commercial vehicle and motorcycle; car ownership measured as car density per 1,000 people.
BMI’s Autos Risk Reward Index
BMI’s Risk Reward Index provides investors (manufacturers, suppliers and dealers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each indices explained.
BMI Economic Forecasts
BMI forecasts to end-2019 for all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Global, Regional and Country Industry Overviews
In-depth analysis of the major global and regional developments in the market, which can be linked with the country industry overview, providing cross-country investment, product and financing trends that will affect each market, supported by BMI’s global and regional industry forecasts.
The Autos reports draw on an extensive network of primary sources, such as manufacturing associations, statistical bureaus, government transport ministries, national chambers of commerce and industry, national statistical offices, government ministries and central banks and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.