2024 Vehicle Production in Taiwan

In 2024, Taiwan’s automobile production declined for the first time in two years, going down 3.9% from the previous year to 274,727 units. Domestic sales also fell below the previous year’s level, but demand remained strong, maintaining a high level. However, domestic-made car sales continued to be sluggish due to strong sales of imported vehicles, mainly luxury cars. The tariff rate for automobiles is 17.5%, and a flat rate of 5% import tax is also imposed on imported products. The relatively high tax rate is not much of a promotional measure for domestic automobile production, due to the rising income of car buyers. On the other hand, regarding exports, Taiwan's labor costs are more than twice as high as those in ASEAN and India, and export destinations are limited when considering profitability, making it difficult to rapidly increase exports.