Taiwan’s new vehicle market dropped slightly to 36,532 units in September 2024 from 37,082 units in the same month of last year, according to registration data compiled by Taiwan’s Ministry of Transportation.
This followed a 17% year-on-year drop in August, which was attributed mainly to the annual “ghost” month which this year began on 4th August – during which superstitious consumers refrain from major purchases. Compared with August, last month’s new vehicle registrations were up by 24%.
The market this year has come up against strong year-earlier volumes, while economic growth in the country has remained reasonably buoyant. GDP growth in the second quarter came in at 5.1% year-on-year, driven mainly by strong exports while private consumption rose by just 2.7%
In the first nine months of the year new vehicle registrations were down by 2% at 344,128 units from 349,722 units in the same period of 2023, with sales of imported vehicles amounting to 165,650 units and domestically-produced vehicles 178,478 units. Sales of battery electric vehicles (BEVs) amounted to 28,560 sales year-to-date, with Tesla, Luxgen and BMW dominating this segment.
Toyota continued to lead the Taiwanese market in the first nine months of the year, with sales just slightly lower at 93,954 units, followed by its Lexus division with an 8% decline to 22,189 units. Mercedes-Benz saw its sales rise by 14% to 20,737 units; Honda 19,581 units (-4%); Hyundai 17,014 (0%); BMW 15,216 (+9%); China Motor 15,210 (+2); Nissan 14,475 (-10%); MG Taiwan 14,290 (+68%), Tesla 11,700 (+19%) Mitsubishi 11,270 (-7%); Mazda 10,758 (+4); and Ford 10,376 (-40%).
In August the Taiwanese government announced the re-introduction of minimum local content requirements for locally-assembled vehicles – regulations that had been discontinued over two decades ago as part of the country’s compliance with World Trade Organisation (WTO) regulations.
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 new regulation is understood to be 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 expected to slow the entry of Chinese brands into the market.
