Taiwan’s new vehicle market declined by 3.7% to 33,076 units in May 2026 from 31,910 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation.

The market remains sluggish overall, with sales last month increasing moderately from weak year-earlier sales, when sales dropped by 23% year-on-year, despite strong economic growth in the country. The latest government data show 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 five months of 2026 declined by 2.3% to 160,917 units from 164,647 units in the same period last year. Sales of imported vehicles fell by 4.2% to 77,167 units, while domestic sales declined slightly to 83,750 units. Sales of battery electric vehicles (BEVs) surged by 44% to 14,243 units in this period, from 9,908 units a year earlier, led by brands such as Tesla, Toyota and Foxtron.

Toyota continued to lead the overall market with sales falling by just over 3% to 49,697 units; while its Lexus division saw its sales fall by 15% to 11,570 units; Honda 9,327 units (+18%); China Motor 9,067 (-18%); Mercedes-Benz with 7,829 units (-30%); Tesla 7,220 units (+141%);  Ford 6,947 (+34%); Mitsubishi 6,814 (+27%); and Hyundai 6,787 (-9%).

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