Shen said drivers in Taiwan buy cars that look luxurious and have plenty of extras. The product cycle is also very short, so "you better change your product every year to satisfy customer requirements," he said. Industry executives also point to a trend toward sport-utility vehicles (SUVs) and multi-purpose vehicles (MPVs), as well as small cars due to their convenience in urban travel and as families increasingly have a second car. DaimlerChrysler, for example, expects to sell around 3,000 to 4,000 of its compact Smart cars within the next five years.
Meanwhile, many foreign car makers are hoping to expand their presence in Taiwan, as well as leverage their resources on both sides of the Taiwan Strait, to tap into the Greater China market and the overall region.
Taiwan and China's entry to the WTO could also pave the way for an easing of current restrictions on cross-strait trade and the eventual import of cars manufactured in China, as well as the pooling of resources, some industry executives said.
"I think the main consideration why we need to import cars from China is because of the [lower] costs," said Lin at Beldare Motors.
All this, of course, spells trouble for local manufacturers and may put some of them out of business, industry executives say. But for consumers, WTO should ultimately mean lower prices and allow growing numbers of Taiwanese to slide in behind the wheel of their favorite foreign model.
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