Taiwan’s new vehicle market expanded by 3.9% year-on-year to 34,511 units in October 2025, up from 33,231 units a year earlier, according to registration data compiled by Taiwan’s Ministry of Transportation.
The vehicle market has weakened significantly over the last year, following two years of strong growth, and last month’s moderate gain followed a sharp decline in the same month last year. Economic growth remained strong in the third quarter, with GDP growth of 7.6% year-on-year following 8% growth in the second quarter, albeit driven mainly by surging exports while domestic consumption remained sluggish.
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In the first ten months of the year, the vehicle market declined by over 12% to 330,648 units from 377,347 units in the same period last year, with sales of domestically-produced vehicles falling by 12% to 171,586 units and import sales also down by 12% to 159,062 units. Sales of battery electric vehicles (BEVs) amounted to 23,407 units in this period, led by Tesla with 10,511 units, followed by BMW with 3,113 units, local automaker Luxgen with 2,802 units, and Mercedes-Benz with 1,598 units.
The performance of the individual brands varied significantly in the ten-month period, with market leader Toyota reporting a 2% decline to 100,696 units; followed by its Lexus luxury division with 24,278 units (unchanged); CMC 20,435 (+24%); Mercedes-Benz 18,604 (-18%); Honda 17,648 (-17%); Hyundai 15,186 (-19%); BMW 14,349 (-9%); and Mitsubishi 10,898 (-17%).
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 regulations are mainly aimed at ensuring minimum safety standards while also protecting the country’s component supply chain.
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