Taiwan vehicle market rises after government increases incentives

Taiwan's new vehicle market rose 14.5% in December 2025 to 47,303 units, and the rebound followed government increases to purchase incentives in September.

Taiwan's new vehicle market recorded a notable rebound at the end of 2025. December registrations rose compared with the same month the prior year. The government increased purchase incentives in September amid sluggish consumer sentiment. Overall annual sales for 2025 remained below the previous year. Key figures: - December 2025 registrations: 47,303 units, up 14.5% from 41,302 in December 2024. - Full-year 2025 total: 414,436 units, down 9.5% from 457,842 in 2024. - Domestic production sales fell by about 11% to 212,448 units, while imports fell 8.4% to 201,988 units. - Battery electric vehicle (BEV) sales totaled 32,559 units; the article notes Tesla with 16,590 units, BMW with 3,720, local automaker Luxgen with 3,464, and Mercedes-Benz with 1,833. - Brand-level variation included Toyota at 124,907 units (a slight decline), Lexus at 28,628 units (a slight increase), and CMC at 23,997 units (+20%); Honda, Mercedes-Benz, Hyundai and BMW each reported year-on-year declines. - Taiwan reintroduced minimum local content rules in 2024 for locally assembled vehicles, starting at 15% in year one and rising to 25% in year two and 35% in year three, which the government described as aimed at safety standards and protecting the component supply chain. Summary: The late-2025 rebound is attributed in part to the government's increased incentives and a pickup in BEV sales. GlobalData expects the light vehicle market to improve in 2026 to around 430,000 units and to continue growing in 2027.