New vehicle sales in Taiwan increased by 4.5% to an eleven-year high of 439,629 units in 2016, according to local industry sources.
The government introduced scrappage incentives at the beginning of last year worth TW$50,000 (US$1,550) per vehicle and this has helped to drive up local sales.
The incentive programme is scheduled to last five years and an official at local Toyota/Lexus distributor Hotai Motor told local reporters that the incentives are expected to continue to lift local vehicle demand for some time.
Hotai posted a 5.3% increase in sales last year to 139,495 units, to claim a market share of almost 32%. The company is planning to strengthen its line-up this year with the launch of the C-HR sporty sedan and the Lexus LC500. The Sienta compact MPV, launched last November, has been received well by the market.
Yulon Nissan Motor's sales rose by 3% to 44,723 units last year, driven by strong demand for the Tiida, Livina and Luxgen models.