Hotai Motor Co (和泰汽車), which distributes Toyota and Lexus vehicles in Taiwan, yesterday said it expects the nation’s overall new car sales for this year to remain at a relatively high level of 440,000 units, amid a stable economic recovery.
Moreover, the government is expected to continue its five-year tax subsidy program on new car purchases, which would further stimulate sales this year, Hotai president Justin Su (蘇純興) said at a media gathering in Taipei.
Last year, total new car sales in Taiwan grew 1.1 percent annually to a 12-year high of 444,669 units, with Hotai retaining its top position by selling 128,084 units, according to data compiled by local motor vehicle branches.
The company posted full-year revenue of NT$177.36 billion (US$6.05 billion), representing a 2.77 percent annual increase from NT$172.58 billion in 2016, which it attributed to better sales of its three benchmark models: the Corolla Altis sedan, RAV4 compact SUV and Sienta minivan.
Last year was the 17th consecutive year that Corolla Altis ranked as the best-selling car in Taiwan, with sales of 39,887 units, data showed.
Hotai said it has set a sales target of 131,000 cars for this year — including 115,000 Toyota and 16,000 Lexus models — on the back of new model launches, up from 128,084 units last year.
Hotai yesterday unveiled a redesigned version of the Lexus LS 350 luxury car.
It also plans to introduce new versions of the Toyota Yaris and Toyota Alphard in the first half of this year, the company said.
Overall, Hotai aims to increase its local market share from 28.8 percent last year to 30 percent this year, the company said.
Tough competition has put pressure on the company since last year, partly because of the higher penetration of imported vehicles in the local market, it added.
Last year, Hotai saw its domestic market share fall 2.9 percentage points from 31.7 percent the previous year, while Mercedes-Benz Taiwan Ltd (台灣賓士) grabbed a 6.3 percent share, up from 5.7 percent the year before.
Industry data showed that Mercedes-Benz sold 28,017 cars in Taiwan last year, a 12.3 percent increase from the 24,950 units it sold in 2016. That was the highest sales growth among imported car brands.
Hotai shares dropped 2.37 percent to close at NT$329 in Taipei trading yesterday, underperforming the broader market, which edged down 0.49 percent.
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