Taiwan’s new vehicle market expanded by 9% year-on-year to 38,657 units in July 2026, after declining by 22% to 35,483 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation.

The market has rebounded strongly in the last two months from weak year-earlier sales, after a sluggish performance in previous months, supported by strong economic growth in the country. The latest government data show that the country’s economy expanded by almost 13% year-on-year in the second quarter of 2026, and by 13.7% in the first half of the year, reflecting strong global demand for IT products such as semiconductors.

Household spending growth accelerated to 5.9% year-on-year in the second quarter, from 4.7% in the previous quarter, while gross capital formation accelerated to 15.4% from 5.9%.

Vehicle sales in the first seven months of 2026 increased by 3% to 240,395 units, after declining by 16% to 234,450 units in the same period last year. Sales of imported vehicles rose by 4% to 117,813 units, while domestic sales increased by just 1% to 122,582 units. Sales of battery electric vehicles (BEVs) surged by 57% to 21,639 units in this period, from 14,175 units a year earlier, led by Tesla with 11,597 units, followed by Toyota with 2,364 units, Foxtron with 2,041, and BMW with 1,490 units.

Toyota continued to lead the overall market with sales rising by 3.8% to 75,119 units year-to-date; while its Lexus division saw its sales fall by 1.9% to 17,480 units. Honda sales increased by 21% to 14,017 units in this period; followed by China Motor with 12,875 (-16%); Tesla 11,597 units (+93%); Mercedes-Benz 11,575 units (-22%); Mitsubishi 9,994 (+29%); Hyundai 9,515 (-13%); and Ford 9,451 (+32%).

GlobalData is forecasting a 6% rebound in light vehicle sales in 2026 to 419,000 units, following a 9% decline to 395,000 units in 2025.