Taiwan’s new vehicle market surged by 25% to 41,361 units in June 2026 after declining by over 17% to 34,320 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation. The market was driven higher by strong demand for battery electric vehicles, led by US automaker Tesla.

The market last month rebounded strongly from weak year-earlier sales, after a sluggish performance in previous months, supported by strong economic growth in the country. The latest government data show that GDP growth accelerated to 13.7% year-on-year in the first quarter of 2026, from 12.6% in the fourth quarter of 2025, reflecting strong global demand for IT products such as semiconductors, while household spending growth accelerated to 4.9% from 3.5%.

Vehicle sales in the first six months of 2026 expanded by 1.7% to 202,278 units from 198,967 units in the same period last year. Sales of imported vehicles rose by 2% to 99,135 units, while domestic sales increased by 1.3% to 103,143 units. Sales of battery electric vehicles (BEVs) surged by 57% to 20,032 units in this period, from 12,748units a year earlier.

Toyota continued to lead the overall market with sales rising by 1.9% to 62,312 units year-to-date; while its Lexus division saw its sales fall by 7.8% to 14,216 units; Honda 11,709 units (+22%); China Motor 10,979 (-16%); Mercedes-Benz with 9,641 units (-26%); Tesla 11,589 units (+147%); Ford 8,362 (+33%); Mitsubishi 8,283 (+26%); and Hyundai 8,151 (-13%).

GlobalData is forecasting a 10% rebound in light vehicle sales to 429,000 units in 2026, following a 10% decline to 390,000 units in 2025.