New-car sales stop dropping in May

This article was published by the Taiwan Headlines on June 7, 2006. It reports that sales of new cars in Taiwan stopped declining in May and enjoyed their first monthly growth so far in 2006. In that month, a total of 32,719 units were sold, up about 15 percent from the volume in April. However, compared to the figure in May 2005, the figure in May 2006 was still down by 24.3 percent.

In the first five months of 2006, the total market share of Taiwan's top-five car brands fell to only about 70 percent, compared to the figure of more than 80 percent in the past. As a result, second-tier auto brands such as Mazda, Honda, Hyundai and Suzuki are winning increasing shares of the market.

The top-five auto brands in Taiwan also saw a change in May 2006. Honda Taiwan Motor Co. jumped to the No.5 spot after the recent introduction of its eighth-generation Civic sedan.

Meanwhile, Hotai further consolidated its No.1 position in May 2006, with a record 31.5 percent market share. The company sold more than 10,000 new cars in that month. Some industry analysts attributed Hotai's strong sales performance in May to the company's moves to clear its inventory of previous-version Camry medium sedans. Indeed, Hotai sold 2,500 units of these medium sedans in May. However, Hotai claimed that it added some equipment to these sedans in order to entice buyers, without cuting the prices.

Yulon-Nissan posted a monthly sales volume of over 3,000 units in May 2006 to maintain its No.3 position. Industry analysts attributed the company's sales performance to its strategy to push the budget-priced Easy March mini-car model.

In June 2006, some companies have begun promoting new models. These include Yulon-Nissan Motor Co.'s Tilda sub-compact car, and Hotai Motor Co. Ltd.'s new Toyota Camry. As a result, sales in June is expected to rise to about 35,000 units.