Sales of new cars plunged 60.4 percent to 9,563 units last month compared with August last year because of high oil prices and the “Ghost Month” effect, according to the latest statistics compiled by Hotai Motor Co (和泰汽車) and the Ministry of Transportation and Communications.
The figures showed that the nation’s new car sales fell 27.6 percent to 165,279 units in the first eight months of this year.
The seventh month of the lunar year, traditionally known as “Ghost Month,” fell between Aug. 1 and Aug. 31 this year. In Taiwan this period is considered a bad time to purchase new houses or cars.
“I have never seen monthly new car sales fall below 10,000 units, even during Ghost Month. The market sentiment seems rather weak,” Roger Chiu (邱奕嘉), head of Hotai Motor’s public relations department, said by telephone yesterday.
Under normal circumstances, sales of new cars during Ghost Month should be between 20,000 and 25,000 units, Chiu said.
Hotai Motor, which distributes both Toyota and Lexus models, is a leading auto company in Taiwan with a market share of 34.3 percent as of the end of last month.
Chiu said the decline in sales did not affect only the auto industry, but was also felt in other industries such as consumer electronics, department stores and retail, beginning in July.
Although domestic oil prices had declined for three consecutive weeks last month, with the exception of last week, prices still remain above NT$30 a liter.
“High oil prices will definitely affect consumers’ willingness to drive cars. This is evident in the growing number of consumers who have recently chosen to buy motorcycles instead of cars, or use the MRT to commute,” Chiu said.
A recent survey released by National Central University indicated the nation’s consumer confidence index (CCI) fell to a historical low of 55.84 points last month.
The sub-index, which saw the largest decline last month, is based on whether consumers think it is a good time to purchase durable goods, such as houses and cars, within the next six months.
The sub-index dropped 1.5 points to 97.65 points last month.
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