Yulon Motor Co Ltd (YMC), the parent company of Taiwan's largest automotive group - Yulon Motor Group, is coming under increased pressure from rising raw material prices, higher energy costs and an increasingly tough pricing environment in its fastest growing market - mainland China. Furthermore, its domestic sales declined by 10.9% in the first half of the year, in a market that had expanded by 8.2%. Net earnings dropped by 20% in the first quarter and conditions are expected to have deteriorated further in the second quarter, writes Tony Pugliese.