Shanghai, June 22 (Gasgoo.com) Taiwan's auto industry is recovering after last year's slump, and new car sales in 2010 are expected to reach 270,000 to 280,000 units, China Post reported today, citing Wu Hsin-fa, president of Yulon Nissan Motor Co.

Wu made the remarks during the company's shareholders meeting yesterday. Yulon Nissan has set the goal of selling 32,000 new cars this year, 1,000 more than last year. The company will likley sell some 1,000 cars to the Philippines, Vietnam and Egypt, he said.

Yulon Nissan's sales in the mainland China market are expected to exceed 600,000 new cars this year, up 15.6% from last year. A rising yuan will boost Yulon Nissan's investment in the mainland and will also encourage Taiwan's auto parts and components makers, Wu added.

Early reports said mainland China's Dongfeng-Nissan joint venture would source the Nissan Bluebird (Sylphy) mid-sized sedans from Nissan's Taiwan partner Yulon Group. This deal would help ease Nissan's output constraint in China.

Taiwan's major auto industry players include Yulon Group, China Motor Corp. (Mitsubishi brand), Yulon Nissan Motor Co. (Nissan), and Honda Taiwan Motor Co. In 2009, there were 294,423 new cars sold in the Taiwan market, up 28.3%.

Yulon has started its joint venture project with mainland China's Dongfeng Motor Corp, to make Luxgen models in Hangzhou. It has also started making Geely Panda-based minicars (renamed Tobe) in Taiwan.