Luxury Import Carmakers Push Entry Models to Drive Sales Volume in Taiwan

Total new-car sales in Taiwan rose year-on-year (YoY) driven by stronger-than-expected demand for new models launched by local auto makers and vendors in October and November, as well as  strong purchases of luxury imports.

Industry sources say that in order to further boost sales volumes, major imported luxury carmakers are pushing more affordable models priced  less than NT$2 million (US$66,666) since early this year, a strategy used by  especially Mercedes-Benz, BMW and Lexus that has successfully realized potential demand amid new-car buyers wishing to upgrade.

In the first 11 months, about 100,000 imported cars were sold in Taiwan, for market share of about 29%, a new record since 2002, when Taiwan became a member of the World Trade Organization (WTO). Among these imports, luxury-brand models also hit a record high share of about 50%.

Mercedes-Benz, for example, sold more than 13,000 units in the first 10 months, already outstripping the whole-2012 figure, with more than 15,000 units from January to November, making it the No. 6 auto vendor on the island during the period with higher ranking than many local brands.

Some auto sellers say that import brands rarely were in the top-10 in Taiwan earlier, which changed from 2012 with  Mercedes-Benz and BMW making it into the list, thanks to their strategy to push many entry-level models while keeping smooth sales of high-end sedans and sport cars. In the past two years, hot-selling  entry-level models of luxury brands include mainly Mercedes-Benz A- and B-series, and BMW X1- and a-series makes.

With the cost advantage of sharply appreciated Japanese yen, Lexus' entry-level IS- and ES-series models also effectively stimulated demand amid local buyers originally planning to purchase locally-made large sedans in the past two years.