New vehicle sales dipped 10.6 percent sequentially to 35,254 units last month, as a global chip shortage and transportation gridlocks disrupted shipments, statistics released by the nation’s motor vehicle offices showed.
On an annual basis, that represented a decline of 7 percent.
Cumulative sales in the first four months of the year contracted 13.5 percent year-on-year to 139,598 units.
Photo: Amy Yang, Taipei Times
Given stringent COVID-19 restrictions in China and persistent global chip constraints, it would be difficult to see a significant improvement in vehicles sales in the short term, said Hotai Motor Co (和泰汽車), which distributes Lexus and Toyota models in Taiwan.
Hotai expects new vehicle sales in Taiwan to be flat or to fall slightly to about 35,000 units this month.
“We have a backlog of more than 10,000 vehicles so far,” Hotai spokesman Simon Liu (劉松山) said by telephone. “The scarcity of auto chips is the main factor affecting production of imported cars. Vehicle production at home looks okay, as most components we use are shipped in from northern China, not Shanghai.”
Liu said it is still unclear whether supply and logistics would improve in the second half.
Consumers should expect a long lead time of between three and six months, he added.
Asked about expectations that local vehicle vendors would hike prices further due to surging costs, Liu said Hotai does not have any plan to raise prices in the short term, as it has already adjusted prices early this year.
Raw material and transportation costs did climb at a steeper rate than last year, he added.
Hotai sold 12,500 units last month, dropping 9.2 percent from March as the chip shortage affected Lexus sales.
Sales of Lexus vehicles imported from Japan fell 25 percent to 1,631 units last month, it said.
Nonetheless, Hotai retained its position as the nation’s biggest vehicle distributor, with a 35.5 percent share of the local market.
Ford Lio Ho Motor Co (福特六和), a local subsidiary of US-based Ford Motor Co, ranked second with a 6.9 percent market share. It moved up one notch from No. 3, as sales expanded 13.7 percent month-on-month to 2,432 units.
The company said it was aided by robust orders ahead of its price hike of between NT$10,000 and NT$19,000 starting this month.
Pan German Universal Motors Ltd (汎德永業汽車), which distributes BMW, Porsche and Mini vehicles in Taiwan, posted the strongest growth among its peers, with auto sales soaring 148 percent month-on-month to 2,165 units last month.
Thanks to new vehicle arrivals, Pan German ranked No. 3 last month, with a market share of 6.1 percent.
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