Taiwan: Automobile Market Projection for 2026

Taiwan’s automobile sales for 2025 are projected to decline by 9.1% year-on-year to approximately 416,000 units. This contraction is attributed to consumer wait-and-see behavior driven by two factors: Expectations that renewal of the Commodity Tax Act would bring even greater incentives for trade-ins; and speculation that ongoing trade talks with the U.S. would lead to lower import tariffs on U.S.-made vehicles. In September 2025, the government enacted an amended ordinance extending and expanding these tax benefits. Supported by subsequent manufacturer promotional campaigns, October sales successfully outperformed the previous year’s figures. With this rebound momentum expected to persist, sales for 2026 are forecast to recover to 445,000 units, a 7.0% increase year-on-year.