Against a background of rising oil prices and weak consumer spending, sales figures in the automotive sector slumped to a new record low last year, the latest government data showed.
Sales of new vehicles totaled 326,000 units last year, down by 10.8 percent on the previous year and the lowest number of vehicles sold in 20 years, tallies released by the Ministry of Transportation and Communications on Wednesday showed.
Among the top 10 models sold in the domestic market last year, Hotai Motor Corp (和泰汽車), the nation's largest car dealer and which distributes Toyota-brand cars, dominated the rankings by taking five of the top six places, with Honda's CR-V minivan managing to prevent a sweep by Toyota by being the No. 4 best-selling vehicle last year, the figures showed.
Even with a 2.4 percent decline in its sales figures, Hotai still reigned supreme when it came to market share, coming in with 32.1 percent of the market and, for the seventh consecutive year, the Toyota Altis sedan was the nation's bestselling vehicle.
As yet, there is no consensus among automotive companies on this year's sales prospects, with some predicting slightly stronger numbers, while others remain pessimistic about the outlook for the economy.
Hotai is one of the few companies expecting a better year in terms of sales this year, Chiu Yi-chia (邱奕嘉), a public relations official at the firm, said by telephone yesterday.
Chiu reasoned there were three main factors that contributed to the dismal performance of the previous year -- oil prices, consumer confidence and the political situation.
With crude oil now at double the price it was at the beginning of last year, the corresponding price increases in other consumer goods and services has forced consumers to think long and hard about buying a new car, he said.
However, Chiu said the company predicted that consumer confidence would return to normal after the legislative and presidential elections are over in the first quarter and that there would be relatively little change in the growth rate of the economy this year. Therefore the firm was confident of achieving stronger sales this year, he said.
Toyota, with its reputation for economical cars, would continue to push hybrid cars in its product line-up this year, he said.
While other manufacturers may be busy readying their more economical products to weather an expected oncoming "green" push, Toyota's sales figures for its pricey Lexus RX400h hybrid sports utility vehicle exceeded its expectations, coming in at 398 units sold in the last year alone, Chiu said.
Hotai is planning on introducing two more luxury hybrid models to their product line ? the GS450h and the LS600h, which it predicts will sell about 100 to 150 units combined, he said.
With sales of luxury cars on the rise, combined with oil price rises and concerns about the environment, the battle in dealership showrooms will rage even more intensely this year.
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