TAIPEI (Taiwan News) — Taiwan’s retail sales totaled NT$4.84 trillion (US$154.3 billion) last year, ending a nine-year streak of annual growth, the Ministry of Economic Affairs reported Friday.
The figure marked a slight decline of NT$9.5 billion, or 0.2%, from 2024. However, it remained the second-highest on record, according to CNA.
The downturn was largely driven by weak demand for durable and high-priced goods, particularly vehicles. Excluding automobile and motorcycle sales, retail revenue would have risen 1.5% year-on-year.
The automobile and motorcycle sector posted the largest drop, with sales falling NT$68.1 billion, as consumers remained cautious about major purchases. Fuel retailers also saw a decline of NT$14.3 billion, reflecting lower international oil prices.
In contrast, the food and beverage and wholesale sectors reached record highs. Food and beverage revenue grew 2.9% to NT$1.07 trillion, while wholesale revenue rose 8.7% to NT$14.07 trillion.
The ministry attributed the strong wholesale performance to robust exports of artificial intelligence cloud server-related products. General merchandise retailers also saw growth, with revenue increasing NT$46.4 billion, signaling steady demand for daily necessities.
Commenting on vehicle sales, Chen Yu-fang (陳玉芳), deputy director-general of the Department of Statistics, said uncertainty over US tariffs weighed on auto demand in the second and third quarters. Demand rebounded in the fourth quarter, aided by reductions in commodity taxes, new vehicle launches, and promotional campaigns.
Chen added that ongoing tax incentives continue to attract buyers. Vehicle demand is expected to improve this year.
Looking ahead, rising minimum wages and stronger corporate profitability are expected to support higher salaries and bonuses, potentially boosting disposable income. Active stock market trading may also contribute.
Several think tanks forecast that private consumption will recover, helping expand domestic demand. While the wholesale sector is expected to benefit from AI-related exports, retail and food and beverage sales may start the year more slowly due to the timing of the Lunar New Year, which delayed year-end banquets and procurement spending.
