Can Taiwanese Enterprises Enter the Mainland Bus Market with "1+1" More Than 2?

In Taiwan, the annual passenger car production is about 2,000 vehicles. Urban buses and coaches each account for about 50% of the total annual market. “Taiwan doesn't have a bus company that meets the scale. Most of them are SMEs that only produce car bodies.” Wang Yingjie, general manager of Taiwan’s One Plus One Industrial Co., Ltd., said in an interview. With advanced thinking and a narrow market, Taiwan’s passenger car manufacturing industry has a very different market development model from the mainland.

Indeed, compared with Taiwan, the mainland market is relatively broad. According to the statistics of China Association of Automobile Manufacturers, domestic passenger car sales in April 2013 were 44,300, an increase of 13.63% year-on-year; from January to April, passenger car sales were 153,200, an increase of 8.63% year-on-year. The strong growth momentum and vast market allow Taiwanese companies to see huge business opportunities.

As one of the only bus body manufacturers in Taiwan with design capabilities, One Plus One Industrial Co., Ltd. was established in 1974. It started as a spare parts manufacturer. In 2004, it set up a R&D department to develop a professional design process for passenger cars and achieved a bus body design. A one-stop industrial model for design, body frame manufacturing and assembly, component design and manufacturing, and body manufacturing and sales. In the face of the originally narrow domestic market in Taiwan, one plus one practice was a market-oriented effort that closely matched the needs of the market and truly achieved “1+1>2”.

Lightweight design concept

Because there is no vehicle production capacity, Taiwan's passenger car chassis are all outsourcing, and companies usually expand the market by means of production and export of spare parts.

“We have entered the mainland market through the sales of core components and patents. Although there are only 21 employees in the one plus one company, one third of the employees are affiliated with the R&D department. They have advanced ideas and dare to innovate, such as the skeletons of passenger cars we produce. In response to the customer's different front and rear models, we have been able to control the wind resistance coefficient between 0.45 and 0.5 compared to the 0.5-0.6 wind resistance coefficient of the mainland, which can effectively reduce the wind resistance.” Wang Yingjie is quite proud of the The reporter introduced.

Relying on the advantages of designing R&D, one plus one hopes to bring lightweight, high-quality products to the mainland market. Wang Yingjie said: "One plus one car body structure is made of medium-carbon steel or higher materials, and the weight of the main structural parts is reduced while ensuring high tension and rigidity. The average 12m passenger car produced in mainland China uses 2.5- 3 tons of metal structural parts, and we only use 2 tons of production is enough." The lightweight body is the inevitable trend of passenger car technology development, and can improve the driving control stability, saving the vehicle fuel consumption.

The management of excellence

One plus one not only has its own uniqueness in design, but also has a set of management. "Based on experience is not as good as the system" is a sum of one plus one company general manager Wang Yingjie's management advantages in Taiwan. "If companies want to ensure the quality of their products, they must put an end to the experience of the 'master's. They do not rely on experience to engage in production."

“The reason why the comfort of Taiwan's interiors is famous throughout the entire bus industry is that we have our own design team that can promote the guarantee of the quantity of vehicles and entrust the production and construction of interiors to professional interior factories. Professional people do professional things and ensure the excellence of the products from the process.” Professional production guarantees quality and concentrates on the energy of the company, so that only 21 teams are still faced with large orders from the mainland. I can calmly give the answer that "even if it is the skeleton of a passenger car, we will have no problem with thousands of vehicles a year."

For Taiwan companies like one plus one, perhaps they do not have such a large market as the mainland. However, they proved to the industry with advanced design concepts and rigorous management methods that they are capable of managing the vast market with the ability and determination. As the degree of cross-strait liberalization deepens, companies that have unique products and management, such as one plus one, will certainly win their place in the highly competitive bus market.

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