Taiwan's Automobile Market Under Pressure: November Reports a 10 Percent Decline

Vehicle sales in Taiwan experienced a significant decline of 10 percent in November 2024, dropping to 39,181 units compared to 43,566 units in the same month of the previous year. This development occurs in the context of a decline already observed in October, by 18 percent, and highlights the challenges the market faces given strong previous year’s figures and slowing economic growth. The GDP growth rate slowed to 4.0 percent year-over-year in the third quarter from 5.1 percent in the second quarter, with particularly cautious household consumption contributing to the downturn. Overall, new registrations fell by 4 percent to 416,540 units in the first eleven months of the year, after increasing by 12 percent to 433,850 units in the same period of 2023. Sales of imported vehicles dropped by 2 percent to 200,628 units, accounting for 48 percent of the total market, while sales of locally produced vehicles declined by 6 percent to 215,912 units. The market for battery electric vehicles (BEVs) has achieved 31,918 sales so far this year, with Tesla, Luxgen, and BMW leading in this segment. Toyota maintained its top position in the overall market despite a decline of over 2 percent to 117,077 units, followed by the luxury division Lexus with a 6 percent decrease to 26,597 units. While Mercedes-Benz and BMW recorded gains, other brands such as Honda and Nissan experienced double-digit losses. In this highly competitive market environment, Hyundai, China Motor, MG Taiwan, and Mitsubishi showed varying growth and decline figures. In July, the Taiwanese government reinstated minimum requirements for local content in vehicle production, which had not been in effect for over two decades. These measures aim, among other things, to ensure safety standards and protect the domestic component industry. Since the direct import of finished vehicles from China is not permitted, this regulation could slow the market entry of Chinese brands.