Taiwan’s new vehicle market expanded by 5.5% to 39,318 units in March 2026 from 37,281 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation.

The market last month rebounded from weak year-earlier levels, and also from sharp decline in February due to the timing of the Lunar New Year holidays. The overall market remains sluggish, however, following a 10% decline to 414,436 units in 2025 despite a pick-up in consumer spending in the fourth quarter.

Vehicle sales in the first three months of 2026 declined by 3.4% to 96,434 units from 99,860 units in the same period last year. Toyota continued to lead the market with sales falling by almost 9% to 29,483 units; while its Lexus division saw its sales fall by 20% to 6,926 units; Honda 6,881 units (+31%); Tesla 5,432 units (+106%); China Motor 5,425 (-16%); Ford 4,434 (+46%); Mercedes-Benz with 4,263 units (-39%); Hyundai 4,050 (+3%); and Mitsubishi 4,031 (+26%).

Earlier this year, Hotai Motor, the distributor of the Toyota, Lexus, and Hino brands, said it expects the market to rebound moderately this year, by just over 6% to around 440,000 units. GlobalData is forecasting a 10% rebound in light vehicle sales to 429,000 units, following a 10% decline to 390,000 units in 2025.