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Output of Taiwan's car industry in Q3 may fall amid slowing economy

Output of Taiwan's car industry in Q3 may fall amid slowing economy

Taipei, Aug. 25 (CNA) Production value of Taiwan's car manufacturing sector for the third quarter is likely to fall partly due to the weakness of the economy, according to a government report. The report, released by the Industry and Technology Intelligence Services (ITIS) Friday, showed output of the local car industry is expected to drop about 12 percent from the second quarter to NT$43.2 billion (US$1.44 billion). The ITIS, a research institute under the Ministry of Economic Affairs, said rising fuel prices and the arrival of Ghost Month will also affect consumption during the quarter. Ghost Month kicked off Aug. 17 and runs through Sept. 15 this year, based on the lunar calendar. Local consumers tend not to buy big items, like cars or homes, during Ghost Month to avoid bad luck, preferring to make purchases before or after that period. The report said many consumers have turned cautious toward the economic outlook, putting their car purchasing plans on hold. Last week, the government cut its forecast of Taiwan's economic growth to 1.66 percent from an earlier estimate of 2.08 percent. In addition, the ITIS said several local car makers have raised their product prices, and the move has narrowed the price gap between locally made cars and imported models, which is likely to lead some consumers in Taiwan to buy imported cars and eventually drag down sales of the local car industry. For the entire 2012, the ITIS said, output of the car industry is expected to reach NT$186.35 billion, down 0.5 percent from 2011. (By Chao Hsiao-hui and Frances Huang)


Updated : 2021-06-23 01:56 GMT+08:00