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TAIPEI, Taiwan — Auto manufacturers in Taiwan are likely to pick up slack orders after earthquakes that hit Japan’s industrial hub Kumamoto forced Toyota and Honda to scale down production.

After a 6.5-magnitude earthquake hit southern Japan’s Kyushu Island on April 14, another 7.3-magnitude earthquake rattled the island during the early morning of April 16.

Most of the Toyota assembly plants across Japan suspended operations after the company’s supply chain in Kumamoto was damaged by the quakes, the company said, adding that the suspension will last for about a week.

Honda’s motorcycle arm will also halt assembly work until April 22, according to an industry analyst.

While the market reflects concerns that the production freeze may jolt local industry, automakers in Taiwan have mostly indicated smooth running, according to a Central News Agency report.

Industry analysts, on the other hand, even project order increases for some Taiwanese firms.

Tong Yang Industry Co. (東陽實業), a major manufacturer of bumper, fender and other auto parts, which provides electroplated products to Toyota, will not suffer adverse impact because of the earthquakes, an institutional investor said.

SUMEEKO Industries Co., Ltd. (世德工業), a Kaohsiung-based auto part supplier that has formed partnerships with Toyota in North America, could get more orders as Toyota facilities close down temporarily.

PATEC Group (F-百達), an engineering solution and components manufacturing business that has established an R&D facility in Tokyo, said it has not been affected by the quakes in Japan.

The company has joined Toyota’s supply chain and has a plant to churn out production in Indonesia.

Da Hui Ltd. (F-達輝), a Malaysia-based manufacturer of motorcycle components like speedometers and headlights, also said its operations have been unaffected by the Japan earthquakes. Its main customers include Yamaha, Honda, and Suzuki.

Eurocharm Group (F-豐祥), another motorcycle components manufacturer based in Vietnam, claimed to experience no negative effects after the quakes. Its customers comprise Vietnamese businesses, as well as Honda and Yamaha. Eurocharm has a facility in the earthquake-ravaged Kumamoto.

weldingEurocharm also has a car manufacturing unit in Vietnam to supply Toyota. It remains unaffected by the Japan quakes since it mostly sources from Thailand, an institutional investor said.

Ta Yih Industrial Co. (大億), which provides car headlights to Mazda and Suzuki, has had steady orders despite the quakes.

Besides the auto companies in Japan, electronics giant Sony and chipmaker Renesas Electronics also reported damage on their manufacturing floors, causing disruptions in supply chains.

Post from The China Post

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