Tue, Jun 27, 2017 - Page 12 News List

Sales may suffer with less effective subsidy: Yulon

By Kuo Chia-erh  /  Staff reporter

Yulon Nissan Motor Co (裕隆日產), which distributes Nissan and Infiniti vehicles in Taiwan, yesterday gave a conservative outlook for the industry, saying the government’s subsidy program might not be as effective as last year.

The government last year implemented a five-year subsidy program, offering car owners a NT$50,000 discount (US$1,648) on commodity taxes if they purchase a new vehicle within six months after exporting or scrapping their used car.

Aided by the subsidy, new car sales increased 4.5 percent annually to an 11-year high of 439,629 units last year, data compiled by local motor vehicle branches showed.

The government’s ongoing pension reform initiative is also likely to lower customer demand for new vehicles amid concern that incomes could decline, Yulon Nissan president Leman Lee (李振成) said at the company’s annual shareholders’ meeting yesterday, adding that new car sales were weaker than expected last month.

Car sales last month increased 3.9 percent to 35,348 units from the previous month, but declined 6.7 percent from a year earlier, data compiled by local motor vehicle branches showed.

“Automobile sales for this year are forecast to total 420,000 units, down 4.46 percent from last year’s 439,629 units,” Lee said

Despite a conservative industry forecast, Yulon Nissan chairman Kenneth Yen (嚴凱泰) gave a relatively optimistic outlook for the company this year, especially in the Chinese market.

Auto sales at its Chinese subsidiary, Dongfeng Nissan Passenger Vehicle Co (東風日產), are expected to hit 1.15 million units this year, compared with 1.12 million units a year earlier, Yulon Nissan said.

The company is seeking new business partners in China, hoping to benefit from a growing auto market there, Yen said, without elaborating.

In the first five months of the year, Yulon Nissan’s cumulative sales reached NT$15.8 billion, up 1.37 percent from the same period a year earlier, the company’s filing with the Taiwan Stock Exchange showed.

This story has been viewed 1671 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top