Taiwan’s leading automaker, Yulon Group, has called on the government to establish clear tariffs and taxes policies to help revive the nation’s declining car market. At a virtual earnings conference held on Wednesday, Yulon Motor’s President, Hsu Kuo-hsing, emphasized the urgent need for transparent and consistent policies to restore consumer confidence and stimulate sales.
The first half of 2025 saw a notable drop in Taiwan’s new car registrations. According to Yulon, only 198,000 new vehicles were registered, representing a 14.4% decrease from the same period in 2024. Hsu explained that many potential buyers have postponed their purchases. This hesitation stems mainly from uncertainty about future car prices caused by unclear tariffs and commodity tax policies.
The lack of clear guidance on taxes and tariffs has created a climate of doubt among consumers. As a result, the demand for cars has weakened across the board. Hsu pointed out that sales of internal combustion engine vehicles fell by 20% in the first half of the year compared to the previous year. Even more concerning is the drop in electric vehicle sales, which declined by almost one-third in the same period.
Yulon Group plays a major role in Taiwan’s automotive industry. The company imports and assembles well-known international models such as Nissan, Mitsubishi, and MG. It also produces Taiwan’s local Luxgen brand. Additionally, Yulon has invested in electric vehicle development through Foxtron Vehicle Technologies, its joint venture with Foxconn Technology Group.
Hsu stressed that the current market environment demands quick government action. He urged authorities to introduce clear tariffs and taxes so buyers can better anticipate prices and make purchasing decisions without fear of sudden changes. Without such clarity, the car market will likely continue to struggle as consumers remain cautious.
In summary, the Taiwanese car market faces significant challenges due to tariff and tax uncertainty. Yulon Group’s leadership firmly believes that establishing clear tariffs and taxes will be crucial to restore demand. By doing so, the government can help stabilize the market and encourage growth in both traditional and electric vehicle sectors.
