Car sales in Taiwan forecast at 420,000 for this year
The number of cars sold in Taiwan in 2015 is expected to remain at around 420,000 units, little changed from last year, Yulon Motor Co. ( ) President Yao Chen- hsiang ) said Wednesday.
At an annual general meeting, Yao said the growth of the local car market is being affected by a slowing global economy.
In addition, local car vendors are facing stiff competition from imported vehicles because of the
( deprecation of the Japanese yen and the euro, he said.
Yulon Motor is the flagship company of Taiwan’s auto giant Yulon Group ( ) , which works with Japanese partners to roll out cars under the Nissan and Mitsubishi brands in Taiwan.
Following a 6.1 percent yearon-year and 0.5 percent monthly drop in May, car sales in Taiwan have been picking in June as consumers have been rushing to place their orders ahead of the traditional Chinese Ghost Month, which falls in August and September, Yao said.
May is a usually a slow period in the local auto sales industry as many investors tend to reserve cash to pay taxes and avoid buying big ticket items like cars.
In addition to manufacturing cars in partnership with Japan’s Nissan Motor and Mitsubishi Motors, Yulon owns a subsidiary, Luxgen Motor Co. ( ), which sells cars under the brand Luxgen.
said Luxgen’s U6 Turbo ECO Hyper hatchback, which was unveiled in April, has been gaining popularity in the local market, and the brand is eager to expand its product line in a bid to gain a higher market share. Currently, only four Luxgen models are available in the market.
In the meeting, shareholders approved a proposal for Yulon Motor to issue NT$0.7 (US$0.02) in cash dividend for 2014. Last year, the automaker posted NT$2.25 billion in net profit, or NT$1.51 in earnings per share.