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British Cars Return to U.S. Market as Taiwanese Automakers Invest $200 Million to Revive Sales

British Cars Return to U.S. Market as Taiwanese Automakers Invest $200 Million to Revive Sales

British automobiles are making a comeback in the U.S. market, while Taiwanese manufacturers face challenges in import vehicle sales, particularly due to lingering high tariff policies. Market reports indicate that sales in Taiwan dropped by approximately 20% year-over-year in May and June. Additionally, 30,000 imported vehicles are currently stuck at the bonded warehouses in Taipei Port, causing dealers to hesitate in processing these cars. To stimulate sales, Haite Automotive announced a promotional campaign starting in July, pledging an investment of up to $200 million, offering buyers discounts valued at up to NT$160,000.

While a $200 million investment sounds significant, the actual beneficiaries will likely number fewer than 2,000, which is less than 1% of their annual sales target of 160,000 vehicles. Other automakers are following Haite's lead, using promotional activities to try to attract consumers. With no hope for a recent tax cut on Japanese and European vehicles, the Ministry of Economic Affairs has reiterated that adjustments will only be discussed after completing U.S.-Taiwan tariff negotiations.

As Taiwanese automakers seek self-revival, British cars such as Mini, Aston Martin, and Range Rover set sail for the U.S. on June 30, marking the first exports of British automobiles following an agreement reached between Prime Minister Rishi Sunak and Trump. For the U.K., this negotiation has secured favorable tariff conditions, with import duties for the first 100,000 cars to the U.S. reduced from 25% to 10%.

However, this agreement is not a comprehensive free trade agreement, but rather a narrow arrangement focused on specific key industries. The Labour government emphasizes protecting domestic industries and jobs, actively creating conditions that enable the automotive industry to remain in the U.K. In contrast, the Taiwanese Ministry of Economic Affairs seems overly focused on capital flow, often overlooking labor and the industry's structural balance in the wake of similar trade pressures.