New car registrations in Taiwan surged in September 2025, driven by the government's revised vehicle tax reduction policy and intensified brand promotions. With 32,228 new vehicles sold during the month, the 9.4% month-on-month growth not only surpassed market expectations of 30,000 units at most but also set a positive tone for the fourth quarter of 2025.
However, compared to the 36,532 units sold in September 2024, sales still declined 11.8% year-over-year. From January to September 2025, total registrations reached 296,131 vehicles, down 13.9% from 344,128 units during the same period last year.
Market subdued by tariff uncertainties
According to industry insiders, Taiwan's auto market has been subdued since April 2025 due to uncertainties surrounding US-Taiwan tariff negotiations, compounded by traditionally weak demand during the seventh month of the lunar calendar—the so-called "ghost month"—which fell in September this year. With recent government tax incentives and aggressive promotional campaigns reviving consumer interest, however, sources are joking that tariffs are even scarier than ghosts, highlighting the substantial impact of policy uncertainties on consumer buying decisions.
Brand performance and model rankings
Hotai Motor, Taiwan's leading auto distributor, recorded 8,340 registrations of Toyota vehicles in September 2025 for a 25.9% market share. In addition, Lexus secured second place in the luxury segment for the month, with its 1,803 vehicle registrations contributing to a 21.3% share of the segment. Combined, Toyota and Lexus accounted for approximately 11,400 registrations and a 31.5% total market share.
The top-selling model was the Toyota Corolla Cross at 3,022 units, followed by the Tesla Model Y with 2,188 units. Other popular models ranking third through tenth included the Toyota Yaris Cross, CMC J Space, Toyota Town Ace, Honda HR-V, Toyota RAV4, Mitsubishi Delica, Toyota Corolla Altis, and Honda CR-V.
In the electric vehicle (EV) sector, the top five brands were Tesla, BMW, Volvo, Luxgen, and Mercedes-Benz. Of particular note, among Luxgen's 217 registrations in September, six were for the yet-to-be-launched N5 model, likely used for display, promotion, testing, or internal purposes within carmakers Yulon Motor and Foxtron Vehicle Technologies.
Fourth quarter outlook remains optimistic
With US-Taiwan tariff talks nearing conclusion and ongoing government subsidies taking effect, market uncertainties are expected to gradually ease. As previously noted by Hotai Motor, although showroom foot traffic has recovered, buyer activity remains stable but unspectacular following the traditional "ghost month" and subsequent long holidays. Nevertheless, with the fourth quarter of 2025 promising strong potential, the company is maintaining its full-year sales target, anticipating a year-end replacement wave from new launches in October 2025, the biennial Taipei Auto Show, and potentially clearer tariff and tax policies by the end of October 2025.
Most brands are similarly optimistic that the fourth quarter will outperform the preceding two quarters, and are preparing a wave of new promotions and product launches. Highlights include the Luxgen N7 Aero Electric Special Edition, and Audi's introduction of the all-electric C-segment luxury sedan A6 e-tron. Additionally, Alfa Romeo's mid-September 2025 return to the Taiwanese market has successfully generated buzz and added momentum for year-end sales.
Article translated by Kevin Wang and edited by Jerry Chen
