Augusive vehicle sales in Taiwan during August

Taiwan's Vehicle Market Experiences Significant Decline in 2025

Taiwan's vehicle market, which had been experiencing strong sales growth for two years, took a turn for the worse in 2025. According to the Ministry of Transportation and Communications (MOTC), the overall vehicle market in Taiwan declined by 14% in the first eight months of 2025, with 263,903 units sold compared to the same period in 2024.

Sales of domestically-produced vehicles also saw a significant drop, falling by 15% to 136,420 units. Import sales followed a similar trend, declining by 13% to 127,483 units. The performance of individual brands varied significantly year-to-date.

Tesla led the way in battery electric vehicle (BEV) sales, accounting for 7,999 units, followed closely by BMW with 2,380 units and local automaker Luxgen with 2,334 BEV units. Mercedes-Benz sold 1,345 BEV units during the same period.

The decline in vehicle sales can be attributed to several factors. Domestic consumption weakened significantly in 2025, due to uncertainty over US import tariffs. The reintroduction of minimum local content requirements for locally-assembled vehicles in 2025 may have also played a role. The new rules require a minimum local content of 15% in the first year, rising to 25% in the second year and 35% in the third year.

However, there was a slight increase in new vehicle sales in August 2025, with 29,458 units sold, compared to 29,401 units sold in the same month the previous year. This slight uptick could be a sign of recovery for the struggling market.

Despite the weakened demand for vehicles, Taiwan's economy continued to perform well in the second quarter of 2025, with economic growth accelerating to 8% year-on-year. The primary driver of this growth was surging exports.

In conclusion, while Taiwan's vehicle market has experienced a significant decline in 2025, there are signs of recovery. The government and automakers will need to continue to work together to address the challenges facing the market and support its growth moving forward.