Taiwan’s new vehicle market declined by 4% to 41,302 units in December 2024 from 43,159 units in the same month a year earlier, according to registration data compiled by Taiwan’s Ministry of Transportation.

This follows much sharper declines in the previous months, reflecting strong year-earlier volumes and weakening domestic economic growth. GDP growth slowed to 4.0% year-on-year in the third quarter from 5.1% in the second quarter, with sluggish household spending contributing significantly to the slowdown. The central bank has left its benchmark interest rate unchanged at 2% since it last hiked almost a year ago.

Over the full year new vehicle registrations fell by 4% to 457,837 units after growing by 12% to 477,009 units in 2023. Sales of imported vehicles fell by less than 2% to 220,503 units in this period, accounting for 48% of the overall market, while sales of domestically-produced vehicles fell by 6% to 237,334 units. Sales of battery electric vehicles (BEVs) amounted to 35,658 units last year, with Tesla, Luxgen and BMW dominating this segment.

Toyota continued to lead the overall vehicle market last year with sales declining by 4% to 128,110 units; followed by its Lexus division with a 5% decline to 28,523 units; Mercedes-Benz with 26,295 units (+8%); Honda 26,785 units (-12%); Hyundai 22,455 (+1%); BMW 20,344 (+15%); China Motor 20,303 (-0.5%); Nissan 19,068 (-16%); MG Taiwan 15,622 (+13%) and Mitsubishi 15,259 (-11%).

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.