Taiwan's Jan auto sales rise 25% on subsidies

Shanghai, February 13 (Gasgoo.com) Vehicle sales in Taiwan have seen a strong surge as expected during January following the introduction of local government's new subsidies, the island's media reported today. 

From January 19, each new car (whether locally assembled or imported) sold in Taiwan with an engine size smaller than 2000cc can get a tax reduction of NT$30,000 (US$885)

Spurred by the stimulus program, vehicle sales in Taiwan increased by 25.9% month on month in January. Distributors said that only 6,000 of the vehicles were sold before the introduction of the support plan, while 15,000 units were sold afterwards, reported Taiwan Economic News.

Taiwan Finance Minister Lee Shu-der said the tax rebate measure adopted by the lawmakers will cost the island's public coffers a NT$9 billion in tax revenues this year but will help revive the development of local auto industry.

Separate statistics show that only 229,495 new car registrations were issued in 2008, a sharp drop of 30% from the previous year to the lowest level in more than two decades.