TAIPEI (Taiwan News) — Taiwan’s new car registrations rose to 39,318 units in March, beating market expectations and signaling a strong rebound in demand.

Industry data showed registrations came in above an earlier forecast of 36,000 units, per CNA. The figure marked a 5.5% increase from a year earlier and a sharp 78.4% jump from February levels.

Analysts said the surge was driven by government trade-in incentives, aggressive promotions by automakers, and a spike in imported vehicle deliveries. These factors helped offset uncertainty from US tariff changes and Middle East tensions.

In the first quarter, total registrations reached 96,434 units, down 3.4% year-on-year. The market showed signs of recovery after a weaker February.

Looking ahead, the industry expects April registrations to reach about 34,000 units. Demand is likely to remain supported by tax incentives and stable economic conditions tied to growth in the AI sector.

Hotai Motor’s Toyota and Lexus brands led the market with a combined 13,017 units in March, accounting for a 33.1% share. Toyota alone sold 10,590 units, maintaining its top position.

Imported vehicles gained momentum, with registrations rising to 20,487 units and taking a 52.1% market share. The luxury segment also expanded year-on-year, though analysts said tariff uncertainties have made some buyers more cautious.