Taiwan’s new vehicle market declined by 17.5% to 34,320 units in June 2025 from 41,587 units in the same month last year, according to registration data compiled by Taiwan’s Ministry of Transportation.
Vehicle demand in the country has weakened significantly in recent months, following two years of strong sales growth, despite a pick-up in economic activity in the country. The country’s economy exceeded expectations in the first quarter of the year, with GDP expanding by 5.5% year-on-year, driven by a rebound in exports. Domestic consumption remains sluggish, however, reflecting growing uncertainty regarding global trade following the recent US import tariff hikes.
In the first half of the year, the vehicle market declined by over 14% to 198,967 units from 232,511 units in the same period last year, with sales of domestically-produced vehicles falling by 12% to 101,817 units, while import sales dropped by almost 17% to 97,170 units. Sales of battery electric vehicles (BEVs) amounted to 12,748 units in this period, led by Tesla with 4,689 units, followed by local automaker Luxgen with 1,930 units, BMW 1,764 units, and Mercedes with 1,195 units.
The performances of the individual brands varied significantly year-to-date, with market leader Toyota enjoying a 3% increase to 61,145 units; followed by its Lexus division with a 2% rise to 15,422 units; CMC 13,144 (+27%); Mercedes-Benz 12,982 (7%); Honda 9,591 (-29%); Hyundai 9,328 (-25%); BMW 8,949 (-10%); Mitsubishi 6,581 (-17%); and Ford 6,283 (-13%).
Last year, Taiwan reintroduced 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 supply chain.
"Taiwan vehicle market down 17% in June" was originally created and published by Just Auto, a GlobalData owned brand.
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