Hotai Motor’s profits jump two-fold despite stagnant sales. How did they do it?

The China Post
Date: May 27, 2017
By: The China Post

TAIPEI, Taiwan — Over the past decade, Taiwan’s yearly car sales have seen

(Business Today)

nearly zero growth. In an unfavorable environment, only one enterprise has posted a rise in profit, with growth that’s about two-fold.

This company isn’t a high-tech firm with an arsenal of unique technology, and it’s not a manufacturing firm with iron-willed management.

It is Hotai Motor Co. (和泰汽車), whose cars richly populate Taiwan’s roads.

With yearly revenue of NT$170 billion, Hotai Motor is Japanese automotive manufacturer Toyota’s first overseas distributor. It has not only been ranked No. 1 in the automotive market for 15 consecutive years, but has also enjoyed a 30 percent market share in Taiwan. While the company’s name is not as much of a household name as automaker Yulon Motor Co (裕隆汽車), it has become an industry authority under the leadership of Hotai’s cofounder Su Yann-huei and now his son Justin Su, in the 70 years since it was founded. Hotai’s market share surpassed Yulon’s in 2002, and Hotai’s share prices now hover at NT$360 with market value reaching NT$200 billion, again surpassing rival Yulon and allowing it to sit comfortably atop the throne of the domestic automobile market.

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