China Economic News Service (Taipei) - Hotai Motor Co. Ltd., agent of Toyota and Lexus in Taiwan, is expected to win about 33.5% share in Taiwan`s automobile market, compared to 31.6% in 2011, according to the dealer, who aims to raise its market share again in 2013 by another percentage point.
As of November 10, Hotai sold some 112,000 new cars in Taiwan, up 0.9% year-on-year to maintain its lead on the island.
Hotai continued to launch the remodeled Toyota Wish crossover vehicle and RAV4 sport utility vehicle (SUV) in December, and is scheduled to demonstrate another model in early 2013, hence anticipating sales growth in the New Year. Regardless how the domestic automobile market changes, Hotai claimed, its target of increasing market share yearly remains unchanged.
In the first 11 months, Hotai registered revenue of NT$84.9 billion (US$2.83 billion), up 6.9% year-on-year (YoY), translating into net earnings per share (EPS) of NT$10.9 (US$0.4).
Hotai said that according to its market-forecast formula, taking into account gross domestic product (GDP), unemployment rate, trade values etc., some 360,000 new cars are expected to be sold in Taiwan in 2013. Plus another variable—the relationship between current ownership volume and vehicle scrap rate on the island, Hotai added, the overall volume might reach 370,000 units.
However, peak replacement purchases decide the expanding new-car sales in Taiwan, Hotai said.
Several major automakers have been looking forward to the Taiwan Transportation Vehicle Manufacturers` Association (TTVMA) to propose a subsidies program for scrapping old cars in Taiwan to stimulate demand for new cars.
Industry sources pointed out that the car scrap rate was about 5% before 2008, but has dropped to only 2.7% in 2011 due to poor domestic economic performance.
