Taiwan’s new vehicle market contracted by 3.6% year-on-year to 33,271 units in October 2026, compared with 34,510 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation.

This followed a 15% rise in September, as the market continued to benefit from strong economic growth in the country. The latest government data show that the economy expanded by over 14% year-on-year in the third quarter of 2026, up from 13% in the second quarter, reflecting strong global demand for IT products such as semiconductors. Household spending growth eased to 5.4% year-on-year in the third quarter, down from 5.9% in the second quarter, while gross capital formation growth accelerated to 26% from 16%.

Vehicle sales in the first nine months of 2026 increased by 3.0% to 340,480 units, up from 330,640 units in the same period last year. Sales of imported vehicles rose by 7% to 170,180 units, while domestic sales increased slightly to 170,300 units. Sales of battery electric vehicles (BEVs) surged by 47% to 34,522 units in this period, from 23,407 units a year earlier, led by Tesla with enjoyed a 77% surge to 18,648 units, followed by Foxtron with 3,986 units and Toyota with 3,067 units.

Toyota continued to lead the overall market with sales rising by 3.3% to 107,378 units year-to-date; while its Lexus division saw its sales fall slightly to 24,140 units. Honda sales increased by 11% to 19,650 units in this period; followed by Tesla with 18,648 units (+77%); China Motor with 17,324 units (-15%); Mercedes-Benz 17,156 units (-12%); Mitsubishi 13,560 units (+25%); Hyundai units 13,193 (-13%); and BMW 13,158 units (-8%).

GlobalData is forecasting a 2% rise in light vehicle sales to 402,000 units in 2026, following a 9% decline to 395,000 units in 2025.