Taiwan’s new vehicle market continued to drop sharply in July 2025, declining by over 22% to 35,483 units from 45,678 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation.
Vehicle demand in the country has weakened significantly in recent months, following two years of strong sales growth, despite a pick-up in economic activity in the country. Economic growth in the country continued to accelerate in the second quarter of 2025, reaching 8% year-on-year, up from 5.5% in the first quarter, driven mainly by surging exports. Domestic consumption weakened significantly, however, with sentiment being affected by uncertainty over US import tariffs.
Go deeper with GlobalData
In the first seven months of the year, the vehicle market declined by almost 16% to 234,450 units from 278,181 units in the same period last year, with sales of domestically-produced vehicles falling by 17% to 121,366 units, while import sales dropped by almost 14% to 113,084 units. Sales of battery electric vehicles (BEVs) amounted to 14,175 units in this period, led by Tesla with 6,022 units, followed by local automaker Luxgen with 2,154 units, BMW 2,148 units, and Mercedes with 1,293 units.
The performances of the individual brands varied significantly year-to-date, with market leader Toyota reporting a 1% decline to 72,369 units; followed by its Lexus division with a 4% decline to 17,814 units; CMC 15,298 (+25%); Mercedes-Benz 14,738 (-12%); Honda 11,551 (-29%); Hyundai 10,877 (-24%); BMW 10,398 (-14%); and Mitsubishi 7,722 (-22%).
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
