Taiwan's China Motor Corporation (CMC) is positioning for a sales rebound in 2026 after navigating a difficult year marked by macroeconomic headwinds and policy uncertainty, banking on new model launches, localization strategies, and a strengthening product mix to regain growth momentum.
Market headwinds weigh on Taiwan auto sector
At an earnings call event on March 25, executive vice president Ching-Wu Chien said Taiwan's auto market contracted sharply in 2025 amid global economic volatility, uncertainty over US trade policies, and domestic regulatory changes. Total vehicle sales fell 9.5% year-on-year to around 414,000 units, with domestically produced vehicles declining an even steeper 10.7%.
Against this backdrop, CMC reported consolidated revenue of NT$32.09 billion (US$1.00 billion), down 18.22% year-on-year. Net profit after tax reached NT$3.19 billion, with earnings per share of NT$5.47. Results were pressured by lower deliveries and higher R&D spending, although the company pointed to improving product mix.
Self-branded models lift market share
Chien emphasized that CMC's self-developed lineup—including the J-Space and ET35—proved a key growth driver. Self-branded vehicle sales rose 19.7% year-on-year, lifting overall market share by 1.4 percentage points to 5.9%. Following the late-2025 launch of the J-Space, quarterly revenue increased 15.8% year-on-year, with operating profit returning to positive territory at NT$197 million, supported by improved margins and capacity utilization.
Non-operating income declined by NT$768 million, primarily due to intensified competition in China affecting returns from CMC's stake in Fujian Benz Automotive. Policy adjustments also disrupted deliveries across multiple brands, contributing to earnings volatility.
2026 outlook: Growth target and product strategy
Looking ahead, Chien forecasts Taiwan's vehicle market to recover to 439,000 units in 2026, as tax incentives and tariff uncertainties stabilize. CMC targets sales of 52,000 units, implying annual growth of more than 18% and a market share of 11.4%.
The growth will be driven by three pillars. In passenger vehicles, collaboration with Mitsubishi Motors will anchor expansion, led by the next-generation XForce SUV featuring Level 2 ADAS and enhanced off-road capabilities. The model has already secured over 1,500 orders and is expected to enter a full sales cycle in 2026, with additional Mitsubishi models planned, according to Chien.
Commercial vehicles and localization efforts
In commercial vehicles, the J-Space continues to lead the light commercial segment, while the electric ET35 has gained traction among logistics operators such as HCT Logistics. CMC plans to introduce a dual-cab ET35 variant and expand its electric commercial vehicle portfolio to support low-carbon transport trends.
For the MG brand, the company is accelerating parts localization in line with government policy, enhancing supply chain resilience through local procurement while expanding its powertrain offerings to include electric and hybrid systems.
Re-Investments and China market challenges
CMC remains optimistic about domestic re-investments, including Tokio Marine Newa Insurance, which is recovering steadily post-pandemic, and dealership operations such as Fortune Motors and Shung Ye Motor, which are expected to benefit from a cyclical upturn.
However, challenges persist in China, where Fujian Benz Automotive faces intensifying competition in the luxury segment. Sales are projected to decline from 19,600 units in 2025 to around 16,000 units in 2026. Chiebn disclosed that CMC plans to mitigate pressure through greater parts localization, network optimization, and collaboration on new energy vehicle development.
Transformation toward mobility services
Chien described 2026 as a pivotal year in CMC's transformation, as the company accelerates its shift from a traditional manufacturer to a provider of mobility services and intelligent transportation solutions. Despite geopolitical and trade uncertainties, CMC aims to rebuild growth through independent R&D, new model introductions, and localization-driven competitiveness.
Article translated by Willis Ke and edited by Joseph Tsai
