Taipei: Taiwan’s Ministry of Economic Affairs (MOEA) announced it is contemplating new regulatory measures to prevent indirect imports of Chinese automobiles. This move comes in response to reports that the electric vehicle giant BYD is planning to enter the Taiwanese market by assembling vehicles in Thailand and selling them under the “Denza” brand through a local agent.
According to Focus Taiwan, the proposed regulations are expected by the end of the year and will address issues concerning national security, vehicle safety, information security, and the protection of Taiwan’s auto industry. Currently, Taiwan prohibits direct imports of fully assembled vehicles from China, and locally assembled vehicles using Chinese components must adhere to strict localization requirements to gain approval for sale and registration.
The ministry’s announcement followed reports by Chinese-language Mirror Media, which cited industry sources indicating that BYD is collaborating with Taikoo Motors Group and utilizing its Taipei-based dealership to import vehicles assembled in Thailand. Two hybrid “Sea Lion” models have reportedly been sent to Taiwan’s Vehicle Safety Certification Center for inspection.
The report also mentioned that BYD’s local agent recently organized a banquet for aides to the Legislative Yuan speaker and deputy speaker, along with other senior government officials. This event has fueled speculation about the company’s intentions to penetrate Taiwan’s market.
Industry experts conveyed concerns that Chinese automakers, benefiting from government subsidies, could potentially offer vehicles at significantly lower prices than their competitors. They cautioned that if these imports remain unchecked, it could lead to a surge of low-cost vehicles, severely affecting Taiwan’s auto and electric vehicle industries.
There are rising apprehensions that such market disruption could harm the domestic automotive ecosystem in the long term, undermining local supply chains and diminishing the global competitiveness of Taiwanese car manufacturers.