Metal chassis makers Catcher Technology, Ju Teng International and Waffer Technology are all eyeing orders for new energy vehicles as NEV demand is poised to grow in China, according to industry sources.
Data from LMC Automotive suggested that global new vehicle sales had increased 4% to 81 million units in 2021, with the share of NEVs continuing to grow. DIGITIMES Research also found that a total of six million EVs were sold around the world last year, a 91% increase from 2020.
Among metal chassis makers, Waffer began deepening its deployments for the automotive sector the earliest, and its clients include Tesla and Audi, the sources said.
The company pointed out that global automakers are actively seeking magnesium-aluminum alloy components because they provide better heat dissipation and weigh less than components made with other metals. This trend has created lucrative opportunities for metal chassis makers, it said.
To meet client demand, Waffer increased the share of automotive products in the third quarter of 2021 and boosted the utilization rate of its equipment production capacity in the fourth quarter. Currently, automotive component products contribute about 80% of the company's revenue, while the remaining 20% were from electronic and industrial-use products.
Waffer has completed construction of the second-phase expansion at its factory in Maanshan, China in response to the rising demand for automotive applications. It plans to begin building a second plant in the area after it acquires new land in 2022.
Catcher and Ju Teng have also expressed optimism about demand in the NEV market.
Catcher chairman Allen Hung said the company will focus not only on chassis but also automotive systems. He said automotive products are only contributing less than 10% of the company's revenue.
Ju Teng has also stepped up its chassis capacity deployments for automotive applications. The company announced in early 2022 that it will set up a new factory in Vietnam with a goal to begin volume production in 2023.