Taiwan’s new vehicle market dropped by 22% to 35,064 units in January 2025 from 44,820 units in the same month of last year, according to registration data compiled by Taiwan’s Ministry of Transportation.

As in many East Asian countries, Taiwan’s vehicle market last month was affected by fewer working days due to the Lunar New Year holidays, which fell in February last year. Economic growth in the country slowed sharply in the fourth quarter of 2024, to 1.8% year-on-year from 4.2% in the third quarter, with private consumption and government spending both weaker. The central bank has kept its benchmark interest rate unchanged at 2% since it last hiked almost a year ago.

Sales of domestically-produced vehicles dropped by 28% to 18,478 units last month, while import sales fell by 13% to 16,586 units. Sales of battery electric vehicles (BEVs) plunged by 41% to 2,209 units.

Toyota continued to lead the overall vehicle market last year with sales rising by 3% to 13,017 units; followed by its Lexus division with a 17% increase to 3,591 units; Mercedes-Benz with 3,086 units (-4%); China Motor 2,111 (-13%); Honda 1,358 units (-59%); BMW 1,357 (-21%); Hyundai 1,223 (-55%); Nissan 1,171 (-42%); and Mazda 1,119 (+30%).

Last year Taiwan re-introduced 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 sector. As Taiwan does not allow direct imports of built-up vehicles from China, the ruling is expected to slow the entry of Chinese brands into the market.

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