Sanyang Quits Auto Association Over New Domestic Production Rules
Taiwan Scooter Giant Sanyang Withdraws from Auto association Over New Production Rules
Taipei, Taiwan – sanyang Industries, Taiwan’s leading scooter manufacturer, announced its withdrawal from the Taiwan Automobile Industry Association on December 2nd, citing frustration with the association’s inaction regarding new government regulations on domestic vehicle production.
The Ministry of Economic Affairs (MOEA) introduced the new regulations in August, aiming to curb the influx of Chinese-made parts used in vehicles assembled in Taiwan.Sanyang, which distributes South Korean CUSTIN models, found itself directly impacted by the new rules as over 90% of CUSTIN parts are sourced from mainland china.
“Some within the association are destroying order and harmony with a mentality of adding insult to injury,” stated Sanyang chairman Wu Qingyuan in a strongly worded statement. He expressed his deep dissatisfaction with the association’s response to the new regulations, leading to Sanyang’s immediate withdrawal.
The MOEA’s Industrial progress Administration (IDA) had previously communicated concerns about the impact of Chinese-made parts on the domestic industry, urging the association to accelerate parts localization. The IDA emphasized that the new regulations are designed to ensure fair market competition, promote industrial development, and protect domestic employment.
The new system targets four types of vehicle models, including those produced by joint ventures between mainland-owned enterprises and international brands. These companies are now required to increase the value ratio of local supply chain cooperation year-on-year.
Sanyang’s decision highlights the growing tension between Taiwanese manufacturers and the government’s efforts to reduce reliance on Chinese parts. The move also raises questions about the future of the Taiwan automobile Industry Association and its ability to represent the interests of its members in a rapidly changing automotive landscape.
Taiwan’s Scooter King Rides Solo: Sanyang Quits Auto Association Over New Rules
Taipei, Taiwan: Kementerian Hal Ehwal Ekonomi (MOEA) regulations aimed at curbing reliance on chinese-made parts in vehicles assembled in Taiwan have triggered a dramatic exit. Sanyang Industries, the nation’s leading scooter manufacturer and distributor of Korean CUSTIN models, announced its withdrawal from the Taiwan Automobile Industry Association on December 2nd.
Sanyang chairman Wu Qingyuan pointed the finger at the association’s inaction in the face of the new regulations, declaring, “Some within the association are destroying order and harmony with a mentality of adding insult to injury.” The regulations, introduced in August, directly impact Sanyang as over 90% of CUSTIN parts are sourced from mainland China.
The Industrial Progress Bureau (IDA), a division of the MOEA, had previously expressed concerns about the proliferation of Chinese parts and urged the association to accelerate localization efforts. The IDA maintains that the new regulations are crucial for ensuring fair competition, fostering domestic industrial growth, and safeguarding local jobs.
The new system specifically targets four vehicle categories, including those produced by joint ventures between mainland Chinese and international brands. These companies are now required to progressively increase the value ratio of locally sourced components.
Sanyang’s withdrawal exposes the mounting tension between Taiwanese manufacturers and the government’s push to reduce dependence on Chinese parts. The move casts a shadow over the future of the Taiwan Automobile Industry Association and its ability to effectively advocate for its members in an evolving automotive landscape.