Taiwan’s Automobile Market in 2025

In 2025, automobile sales in Taiwan fell for the second consecutive year, decreasing by 9.5% year-on-year to 414,000 units. The primary cause of this slump was consumer hesitation. Taiwan had previously introduced commodity tax reductions for automobiles and motorcycles to encourage the replacement of older, less fuel-efficient, and high-emission vehicles with newer models; this measure was originally scheduled to expire on January 7, 2026. Speculation spread among consumers that the extension of these tax cuts might include expanded incentives. Furthermore, expectations that a trade agreement between Taiwan and the U.S. might include tariff reductions for American-made vehicles further contributed to the trend of deferred purchases.