Taiwan’s new vehicle market stabilised in August following sharp declines in recent months, with sales slightly higher year-on-year at 29,458 units compared with 29,401 units a year earlier, according to registration data compiled by Taiwan’s Ministry of Transportation.
Vehicle demand in the country has weakened significantly in 2025, following two years of strong sales growth, despite strong economic activity in the country. Economic growth accelerated in the second quarter of 2025, to 8% year-on-year from 5.5% in the first quarter, driven mainly by surging exports. Domestic consumption weakened significantly, however, with sentiment affected by uncertainty over US import tariffs.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In the first eight months of the year, the vehicle market declined by 14% to 263,903 units from 307,596 units in the same period last year, with sales of domestically-produced vehicles falling by 15% to 136,420 units, while import sales declined by 13% to 127,483 units. Sales of battery electric vehicles (BEVs) amounted to 17,129 units in this period, led by Tesla with 7,999 units, followed by BMW with 2,380 units, local automaker Luxgen with 2,334 units, and Mercedes-Benz with 1,345 units.
The performance of the individual brands varied significantly year-to-date, with market leader Toyota reporting a 1% increase to 84,329 units; followed by its Lexus luxury division with a 2% increase to 20,427 units; CMC 17,129 (+26%); Mercedes-Benz 15,603 (-16%); Honda 12,944 (-27%); Hyundai 11,889 (-23%); BMW 11,418 (-14%); and Mitsubishi 8,580 (-18%).
Last year, Taiwan reintroduced minimum local content requirements for locally-assembled vehicles – regulations that had been discontinued more than two decades ago. Under the new rules, locally-assembled vehicles are required to have a minimum local content of 15% in their first year of production, rising to 25% in the second year and 35% in the third year. The government claims the new regulation is mainly aimed at ensuring minimum safety standards while also protecting the country’s component supply chain.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
