LED car market to take off the station into the new blue ocean

LED upstream industry overcapacity has led to the imbalance between supply and demand and prices plummet, niche market of LED industry to actively develop different application fields, LED vehicle industry became locked new blue ocean market, car lighting safety specification strictly, plus certification time long, the human resources and the high cost of authentication, enter vehicle lighting supply chain opportunities are relatively low, but once into the car lighting, will be expected to take long-term and stable orders, coupled with the market niche, performance of the product gross margin is relatively excellent, this is also in recent years to enter the LED factory car market main.

The vehicle LED market with the EU for car emissions standards are more stringent and gradually grow, the EU in 2013 once again resorted to the new order, the draft law, request to the EU in 2020 sold the car average per kilometer of carbon dioxide emissions from 130 grams to 95 grams, the automobile emissions expected for more rigorous specification, the car factory uses the vehicle LED lighting has quite high proportion. Whether in the headlights, taillights, interior lighting, dashboard and other vehicles with LED, the factory have become eager to strive for the blue ocean market work, EPISTAR, canyuan, Lunda, Everlight, East Bay, Scarlett, Li Lite, Qing Taiwan factory to attack vehicle lighting market.

It's hard to get into the supply chain

Niche market car LED lighting belongs to the higher gross margin, although Taiwan plants are salivating on this market pie, but hit the road vehicle lighting supply chain is not low, the first heavy vehicle lighting safety, international car factory product validation period is long, you want to enter the automotive lighting supply chain LED factory must continue pay manpower and resources to test and communicate with the original product and lamp factory and international car plant using LED lighting products to global brands as a priority, Taiwan factory breakthrough is not easy to break.

Access to supply chain orders and gross margin are guaranteed

Because the authentication time and long process, once into the vehicle lighting supply chain, LED factory and car factory or light factory cooperation will tend to be stable, the possibility of the original factory to replace the LED supply plant, compared to other species, low probability, long term, LED will be able to grasp the stable order and the length of the order the car lighting by LED gross margin is also relatively better, this is the Taiwan plant in recent years to get into the main LED vehicle market.

LED station layout

Lite in recent years through subsidiaries dunyang into the car with the LED supply chain, including the front and rear lights, car lights supply. With the car with LED lighting has become the automobile standard, Taiwan factory continued in the vehicle to enter the market good news, including in the niche market Li Lian Jia Qing and with the manufacturers orders, the largest customer for Li Qing Shanghai Koito (S.KOITO), SAIC Group and Japan Koito automotive lamp factory. Taiwan factory union in the past several years, successfully entered cars in Europe and the United States in LED supply chain, supply the headlights and taillights to get off with LED's international customers, products accounted for the overall revenue to the 6 level, the future growth potential is still full.