Auto Parts Demand Set to Rebound in Q2
2026/05/05 | By Sherry Chen
Taiwan’s automotive components sector has faced sustained pressure since April last year from shifting tariffs, currency volatility, and geopolitical uncertainty. In the second quarter, the outlook is moving towards cautiously optimistic. While the first quarter underperformed typical seasonal expectations, industry participants anticipate a potential demand-driven recovery in the traditionally slower Q2 period.
Although the United States and Taiwan had reached a preliminary consensus earlier this year to reduce tariffs, the geopolitical tensions in the Middle East have caused further disruptions as a result of conservative sourcing and delaying restocking decisions.
Leading Taiwanese auto parts manufacturers, including Tong Yang Group, Depo Auto Parts, Gordon Auto Body Parts, and Hushan Autoparts, reported year-on-year revenue declines of 10% to 20%.