Despite a worldwide downturn in automobile sales, Taiwan recorded 37,279 new‑car registrations for March 2020, according to the Ministry of Transportation and Communications. That figure represents a 15.1 % increase over March 2019 and a 36.3 % rise from February 2020.
The first quarter’s total topped 100,000 units, an 8.2 % year‑on‑year gain, even as factories and showrooms elsewhere were forced to shut. Industry insiders point to three main drivers: low fuel prices, commuters’ aversion to crowded public transport, and the island’s early success in containing COVID‑19. By the end of March, Taiwan had logged only 363 confirmed cases and never imposed a full lockdown.
Nonetheless, public‑transport usage fell—subway ridership in Taipei dropped 15 % and taxi bookings slid 20 %—prompting many white‑collar workers to opt for private vehicles. “People want a sealed cabin they can disinfect themselves,” said James Shih, sales director for Hotai Motor, the local Toyota distributor.
He noted that showroom traffic dipped in early March but rebounded once the stock market steadied. Fuel costs have also helped; the price of 95‑octane gasoline fell to NT$22.2 per litre, an 18 % decline since January. The lower price trims roughly NT$7,000 off the annual cost of a 20‑km daily commute, a saving that dealers now highlight in social‑media promotions.
Japanese marques dominated the market. Toyota and Lexus together accounted for 31.5 % of March sales, delivering 11,726 units and widening their lead over rivals.
Mitsubishi held second place with 3,952 registrations, buoyed by the Colt Plus wagon favored by first‑time buyers. Mercedes‑Benz secured third with 2,693 cars, showing that luxury buyers remain relatively insulated from recession headlines. Honda, Nissan and Mazda completed the top six, while Ford and Volkswagen fell outside the leading group.
“Taiwanese loyalty to Japanese reliability is almost cultural,” observed James Chao, Asia‑Pacific analyst at IHS Markit. He added that aggressive parts stocking by dealers keeps service wait times short, a crucial advantage while global supply chains are strained.
Electric‑vehicle maker Tesla entered the top ten for the first time, delivering 1,500 Model 3 sedans in March and ranking eighth—outselling Subaru, BMW and Ford. A March 1 tax revision eliminated the 10 % commodity tax on pure‑electric cars, reducing the sticker price to NT$1.55 million. Buyers also benefit from a NT$350,000 government subsidy that survived cuts elsewhere. James Chen, managing director of Tesla Taiwan, said the island’s charging network remains uneven outside Taipei, but suburban owners with private garages find the economics attractive.
He expects April deliveries to hover around 1,300 units despite port congestion. Charging infrastructure is expanding: public chargers rose 40 % year‑on‑year to 2,800, and state‑owned CPC Corp pledged 200 new fast‑charge bays at highway rest stops by July.
Looking ahead, dealers warn the March spike may be temporary. “We are selling inventory built before Chinese New Year,” said James Lien, secretary‑general of the Taiwan Auto Sales Association. “By late April, some popular colours and trims will be gone.” More than 80 % of vehicles sold in Taiwan are imported as complete units or knock‑down kits, and production in Japan, Europe and the United States is only now restarting.
Hotai has already warned that the RAV4 hybrid could face a six‑week wait, while Mercedes dealers recently removed the C‑Class from online configurators. The association has trimmed its 2020 sales forecast to 420,000 units, down from an earlier 440,000 estimate but still slightly above 2019’s 417,000.
Lien cautioned that a resurgence of the virus or further port bottlenecks could push May registrations below 25,000. Transport Minister Lin Chia‑lung remained optimistic, stating on 3 April that Taiwan’s car market is “a bright spot in Asia” and that showrooms will stay open, with import delays reviewed case by case. He added that the second‑half recovery hinges on how quickly manufacturers in Detroit, Nagoya and Stuttgart resume full production.
For now, drivers line up at newly installed chargers while sales staff disinfect door handles after each test drive. Taiwan’s auto sector has thus far avoided the worst of the COVID‑19 shock, but its next challenge will be ensuring a steady flow of engines and semiconductors through Keelung port to match the renewed appetite for private vehicles.
