The development of EVs has prompted conventional carmakers to reform their business and service models. For example, car subscription services have won the favor of more consumers, according to KPMG Taiwan Industrial Markets head Johnny Chang.

Consumers subscribing to such services do not need to worry about the considerable costs and burdens that would follow car purchases, he noted.

In the future, carmakers would directly sell their products to clients along with different online services, signaling revolutionary changes in the industry. Meanwhile, consumers would pay more attention to driving experience when considering whether to buy a new car.

The need to develop quieter and more efficient gears for EVs is a challenge, Great Taiwan Gear general manager Lin Yi-min said. In the face of increasing demand for EVs, the company has partnered with domestic academic institutions to develop new gear boxes, in the hope to evolve into a subassembly supplier and widen its international market, he said.

Asked how to advance cooperation with electronics suppliers - a must for conventional manufacturers in the future mobility era, Lin expressed an optimistic outlook, but noted that improving business management is the real challenge.

In addition, how to improve production efficiency is a common issue among Taiwan's SMEs, as they are being driven to think beyond technological improvements. While many managers of the younger generations have attached importance to promoting human-based management, their management should keep abreast of the times if they are to sharpen their edge in the global automotive supply chain.

No less challenging is the need to improve the energy efficiency of vehicle components. Tyler Hsu from DEPO Auto Parts said the company has formed strategic partnerships with makers of alternative fuel vehicles and EVs to develop energy-efficient car lamps, moving from producing LED lights in the past to laser lights at present, and is looking to enter the miniLED segment in the future. New car lamps, instead of acting only as lights, are expected to become a form of media or even image projectors. To boost its edge in the supply chain, the company is upgrading its environmental management.

Manufacturing servitization is a foreseeable trend, said Wang Chao-ching from Shih Hsiang Auto Parts. Apart from improving manufacturing capabilities, makers ought to make better use of the broadband Internet, digital and AI-assisted tools to create a platform to serve clients across the world, he said.

By DIGITIMES