Revealing Taiwan’s Invisible Champions: Long Feng and Cub supply innovative Auto Parts to the World
TAIPEI, Taiwan--(BUSINESS WIRE)--Sep 22, 2020--
Despite stagnant growth in the automotive global market, new technologies for self-driving cars, electric cars, and carsharing are bound to have a significant impact on the auto industry in the near future. Besides the needs of individual drivers, governments in various countries have set up regulations for energy conservation, better environmental protection, and smart safety. This has led to the increasing development and use of electronics in the automotive industry. According to Strategy Analytics, Automotive Electronics systems will represent up to 50% of the vehicle cost by 2030.
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Figure 1: BSD has gradually become required automotive equipment. (True universal BSD indicator from Cub)
Increasing Demand in the ADAS Market
Due to intelligence and network trends in recent years, the global automotive industry has been fervently investing in the development of driver assistance systems. According to survey results from JD Power, an authority on auto ratings in the U.S., consumers have high expectations of different types of advanced driver assistance systems (ADAS). Due to its positive effects on driving safety, governments in various countries are expected to pass legislation to include ADAS functions or systems as required vehicle equipment in the near future.
Both the universal TPMS and integrated vehicle light radar from Cub are winners of the Taiwan Excellence Award. Their TPMS as well as its setup tools were developed to reduce inventory and improve universal application and they now have a global coverage rate of 99.5%.
Besides the U.S. market, which is currently entering a transition period, market demand in other countries is gradually increasing. While the European Union has yet to enter an aftermarket transition period, its regulations on winter tires immediately led to demands for universal sensors. In response to market demand post-EU legislations, emphasis has been placed on the marketing and sales of Cub "Uni-Sensor" and "Sensor-AID" in the EU in recent years. Early success as well as branding effects are already being seen and marketing initiatives have also been undertaken in other countries around the globe.
The Integrated Millimeter Taillamp Radar developed by Cub is equipped with five major functions: blind spot detection (BSD), lane change alarm (LCA), rear collision traffic alarm (RCTA), door open warning (DOW), and rear collision warning (RCW). It is an innovative product, and the first in the domestic aftermarket to combine millimeter radar, vehicle light sources, as well as the five ADAS functions.
Despite a dip in the automotive market from 2018 to 2019, the market penetration of LEDs has continued to increase. Coupled with higher demands for energy conservation in new alternative fuel vehicles and how demands for LED auto lighting are much higher compared to traditional vehicles, the output value and quantity of automotive LEDs are still expected to grow in the next few years. Global output value for automotive LEDs is estimated to reach US$4.21 billion in 2023.
Optimistic about Automotive Lighting Market, Taiwan's Automakers Working to Claim Their Spot
The penetration rate of Taiwan's LED vehicle lights is steadily increasing, with aftermarket (AM) headlights, fog lights, and brake lights seeing the highest growth in 2020. The global output value for vehicle LEDs in 2020 is estimated to be US$7 billion. The compound annual growth rate from 2019 to 2023 is at 18% and the main reason why Taiwan's LED manufacturers have been striving to position themselves in the automotive market in the last few years.
Long Feng started off in 1978 in car repairs and shifted to auto part manufacturing in 1987. It entered the US market in 1992 and created its "Eagle Eyes" brand based on the image of the American Bald Eagle to market products worldwide. In addition to the after-sales market for original replacement parts, it was also one of the first to enter the retrofit market to satisfy customization needs. Its product range includes headlights, rear lights, corner lights, sidelights, bumper lights, fog lights, daytime running lights, and third brake lights. Currently, it offers more than 10,000 types of car light products and over 200 new products are still being developed every year.
The "Performance Full - LED Headlight replacement for Volvo VN series" designed by Long Feng has won the Taiwan Excellence Award. This rare truck modification product replaces traditional light bulbs with LED modules on low and high beams. LED brightness, low energy consumption, long shelf life, and low replacement rates all contribute to the goal of energy conservation and environmental protection. While the traditional Halogen light in automotive light design has been popular in recent years, LED lighting is now gradually replacing HID in the mainstream automotive light market. Long Feng has expanded its R&D into the truck light market, showing the world not just customized lights for cars, but also a revolutionary display of innovation and design aesthetics for truck lights.
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Mark Wu, Executive Director of TAITRA's Strategic Marketing Department
KEYWORD: CALIFORNIA UNITED STATES TAIWAN NORTH AMERICA ASIA PACIFIC
INDUSTRY KEYWORD: ONLINE RETAIL HARDWARE SPECIALTY CONSUMER ELECTRONICS GENERAL AUTOMOTIVE TECHNOLOGY AUTOMOTIVE SECURITY RETAIL AUTOMOTIVE MANUFACTURING OTHER AUTOMOTIVE AEROSPACE MANUFACTURING
SOURCE: Taiwan External Trade Development Council
Copyright Business Wire 2020.
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