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Supplier Delta betting on growth with electric cars

8. April 2021

Supplier Delta Electronics predicts rapid growth for its electric car components business this year and next. Earlier, other well-known manufacturers from Taiwan such as Foxconn, one of Apple’s main suppliers, announced their entry into the automotive business. According to Delta CEO Yancey Hai, the electric car component business will show double-digit growth in the coming years. To achieve this, Delta will integrate existing drive components into modules for e-cars, making it easier for electric car manufacturers to develop and produce them.

 

Although automotive customers are currently responsible for only a fraction of Delta’s revenue last year, they will be a key growth factor in the future. Delta and competitors such as Foxconn Technology Group are increasingly looking to electric cars as a future source of revenue as demand for computers and smartphones, previously the Taiwanese supplier’s main business, stagnates. As a long-time electrical parts supplier to Apple, Dell and other global technology companies, Delta began building an electric car components division a decade ago.

Today, Delta supplies electric parts and powertrains to well-known automakers such as Tesla, General Motors and Stellantis. A Delta management official said that by 2030, the company aims to have at least 10 percent market share in the e-car components business. According to analysts, Delta’s electric car division is currently making a loss, but it is expected to break even by 2023 at the latest as sales will increase next year. Delta also plans to invest locally in existing electric car software and mechanical component businesses to offer customers a complete solution.

In order to import products into Taiwan, it must be ensured that they meet Taiwanese safety and quality standards. This is ensured by specific, product-dependent certifications, which certify that the products comply with the relevant regulations in Taiwan. The Vehicle Safety and Certification Center (VSCC) is responsible for vehicles and products in the automotive industry in Taiwan. The authority was established in 2009 by the Ministry of Transport and Communications in the Taiwanese city of Lugang. In its scope, the certifications for Taiwan are similar to the Chinese CCC and CEL certifications.

MPR China Certification GmbH has many years of experience in Taiwan certification and competent local partners. We will be pleased to advise you without obligation about the scope and procedure of a Taiwan certification.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

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MPR Author

About the author: Julian Busch is founder and Managing Director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

Tel.: +49 69 271 37 69 150

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