Imported Vehicle Tariffs Still Undecided, Putting Annual Sales Target of 400,000 Units at Risk

The auto market remains shrouded in uncertainty, with the annual target of 400,000 units now hanging in the balance. Import tariffs have yet to be finalized, leaving imported vehicles mired in policy limbo. Although earlier reports hinted that answers might emerge after the Double Ten holiday, no concrete decisions have materialized. This prolonged uncertainty threatens to further suppress fourth-quarter sales (registrations).

Hota Motor projects October sales to reach 37,000 units, up from 33,231 units a year earlier. However, only 8,895 vehicles were registered in the first half of October—over 75% short of the target pace. Industry insiders warn that if U.S. tariff decisions remain unresolved, achieving the 400,000-unit annual goal will be nearly impossible.

According to industry sources, authorities had previously considered adjusting tariffs specifically for U.S.-made vehicles—potentially reducing them to zero. Rumors suggested that related policies would be finalized after the holiday, but that now appears unlikely.

American car brands occupy only a small share of Taiwan’s market, and apart from Tesla, their influence is limited. Insiders note that Tesla remains the mainstream EV brand, yet given the exclusivity of car-buying budgets, many potential buyers are likely to adopt a “wait-and-see” stance until tariff policies are clarified. With no clear government direction, imported car demand remains frozen. As a result, fourth-quarter registrations may tighten further, causing annual totals to shrink.

Taiwan’s auto market has languished for nearly half a year since the second quarter, hit by the dual pressures of commodity tax and tariff concerns. Although the government’s recent NT$50,000 reduction in commodity tax for vehicles under 2,000cc briefly revived demand, the rebound proved short-lived, and the market has since cooled again.

Industry expectations had called for fourth-quarter sales to exceed last year’s 112,000 units. Combined with 296,000 units registered in the first nine months, total annual registrations were projected to surpass the 400,000-unit mark despite a year-on-year decline. Yet with only 8,895 vehicles registered in early October—falling over 75% short of plan—the goal now appears unreachable without supportive tariff policies.

If the tariff issue remains unresolved, consumers may continue delaying vehicle deliveries and registrations, making it difficult for automakers to meet fourth-quarter targets. The industry’s “400,000-unit defense battle” could ultimately end in defeat.

Automakers also note that the high number of holidays in October affected the low registration figures in the first half of the month, as fewer working days limited processing capacity. Otherwise, the combined incentives of a NT$50,000 commodity tax reduction for new cars and a NT$50,000 subsidy for scrapping old vehicles should have helped boost domestic car sales—offering at least a glimmer of optimism amid an otherwise sluggish market.