TAIPEI (TVBS News) — Taiwan's car market continues to thrive, with the value of imported cars reaching a record high of NT＄85 billion from January to April this year, a 54% increase compared to the previous year, according to the Ministry of Finance.
The government attributes this surge in car purchases to several factors. First, individuals have found themselves with some disposable income to invest in a new vehicle, thanks to rising salaries, compensation from COVID insurance, dividends issued by companies, and Taiwan's NT＄6,000 tax rebate.
However, experts within the car industry hold a more cautious outlook, differing from the government's optimism. They stated that the market's digestion of orders from the previous year significantly contributes to imported car sales.
The COVID-19 pandemic has profoundly impacted the global market, leading to raw material shortages, reduced production, and a halt to production lines during the lockdown. And the results were a decrease in car production.
Experts point out that the semiconductor industry and the Russia-Ukraine war are major reasons car orders have been delayed in recent years.
Just like houses, cars are "durable goods" that are bought once in a while. Based on past evidence, the number of car purchases will only increase when the economy is thriving.
However, during the pandemic and the Russia-Ukraine war, the global economy was plunged, creating an illusion of the car industry prospering in 2023.