Yulon Nissan Motor Co. (裕日車), a subsidiary of Yulon Group (裕隆集團), a leading auto maker in Taiwan, said on Tuesday that it expects about 420,000 cars to be sold in the local market in 2016, up 9,000 units from a year earlier.
At an investor conference, Tsay Wen-rong (蔡文榮) said that despite the lack of any significant improvement in the local and global economy this year, the domestic car market is expected to continue to benefit from the government’s purchase subsidy program.
Tsay said that with international crude oil prices remaining low, local consumers have become more willing to drive on their own and buy new cars, which could further boost the auto market.
In the first 10 months of this year, a total of 352,000 cars were sold in Taiwan, an increase of 4.8 percent from the previous year, with more than 35,000 units sold in October, up 12.1 percent from a year earlier.
Market analysts said that based on the 10-month sales figure, the forecast of 420,000 unit sales is realistic as the car market is in its peak season on the back of strong year-end buying interest.
However, Yulon’s forecast was more cautious than that of rival Hotai Motor Co. (和泰), the local sales agent for Japan’s Toyota Motor, which earlier in the month forecast car sales in Taiwan would reach 430,000 in 2016, the highest level for 11 years.
At the investor conference, Yulon Nissan Motor, which rolls out cars under the Nissan brand, reported net profit of NT$3.34 billion (US$105 million) for the first three quarters, with earnings per share (EPS) at NT$11.12.
EPS for the first nine months of this year beat the NT$10.89 recorded over the same period last year due to strong returns on Yulon Nissan’s investments in the China market, where the company holds a stake in Guangzhou-based Dongfeng Nissan Passenger Vehicle Co. (東風日產).
In the first 10 months of this year, Yulon Nissan sold 34,372 cars in Taiwan, up 5.2 percent year-on-year. Tsay said the company will continue to introduce new models in 2017, in particular in the TIIDA and Sentra series, to boost sales.
Source: Focus Taiwan News Channel