The slump in sales in Taiwan’s car market is being driven by the growing migration of the merchant class to mainland China according to a local Ford official.
Ford Lio Ho Motor Co president Jeffery Nemeth told the Taipei Times that the Taiwanese auto market is unlikely to see a turnaround from the current slump if the migration of Taiwanese merchants to China continues.
He said an estimated 1.3 million Taiwanese people have moved to China and the situation appears to be getting worse, which is disadvantageous to the local auto market.
Nemeth’s remarks came as the latest government statistics showed the number of new cars sales in Taiwan fell to only 17,324 units the lowest October level in 20 years.
Industry experts estimated the total number of new cars sold this year may barely reach 230,000 units, after reaching a peak of 514,627 units in 2005, the report said.
Domestic automobile makers are working on rescue plans, including government tax breaks and scrapping incentives, the report said.
Nemeth estimated that Chinese emigration wave could cost the Taiwanese auto market sales of 100,000 a year or more if the trend is not checked.
He also told the newspaper that Ford is ‘upbeat’ about its operations in Taiwan and will continue to invest there.
Go deeper with GlobalData
