Taiwan's automobile market falters: Decline noticeable

The vehicle market in Taiwan experienced a significant setback in November, with a 10% decline to 39,181 units compared to the same month last year. This development follows an 18% decline in October, attributed to strong figures from the previous year and the country's slowing economic growth. Notably, GDP growth fell from 5.1% in the second quarter to 4.0% in the third quarter, with sluggish household consumption having a significant impact on this cooling. In the first eleven months of the year, new registrations decreased by 4% to 416,540 units, after rising by 12% during the same period in 2023. Sales of imported vehicles decreased by 2% to 200,628 units, while sales of domestically produced vehicles fell by 6% to 215,912 units. The sector of battery electric vehicles (BEVs) recorded 31,918 sales so far, led by Tesla, Luxgen, and BMW. Toyota continues to maintain its leading market position, despite a sales decline of over 2% to 117,077 units in the first eleven months. The subsidiary brand Lexus reported a 6% decrease to 26,597 units. In contrast, Mercedes-Benz recorded an 8% increase to 24,554 units, while other brands like Honda and Hyundai suffered losses of 12% and 2%, respectively. Since July, new regulations in Taiwan prescribe a minimum share of local components for domestically assembled vehicles. This measure, primarily aimed at ensuring safety standards and protecting the local components industry, could slow the market entry of Chinese brands, as Taiwan does not allow direct imports of fully assembled vehicles from China.