TAIPEI (Taiwan News) — Hotai Motor said Wednesday it’s sticking to its sales target of 165,000 vehicles this year, but warned that Taiwan’s auto outlook hinges on tariff decisions.

At an investor conference, Hotai Motor Spokesperson Lai Chih-wei (賴志偉) said the company is waiting for the government to finalize tariff and excise tax policies, CNA. He noted that the market remains unsettled as US President Donald Trump’s tariff strategy plays out, per UDN.

Lai said traditional market cycles have flattened, with Ghost Month no longer a drag on sales, but consumer sentiment is being restrained by policy uncertainty. The outlook will only become clearer once tariff policies are finalized, he added.

Government officials have said US-spec car imports are part of broader Taiwan-US trade negotiations, alongside non-tariff barriers. Lai noted that the impact would fall mainly on vehicles built in the US, but definitions and rate changes remain unresolved.

Despite this, Hotai reaffirmed its unit breakdown for the year: 130,000 Toyota cars for a 29% market share, 28,500 Lexus vehicles for 6.3%, and 6,350 Hino trucks for 1.4%. Lai said delivery operations are stabilizing even as some buyers hesitate.

First-half earnings fell sharply, with after-tax net profit down NT$3.5 billion (US$114 million) from last year, mainly due to reduced earnings from equity investments.

Hotai Insurance also reported lower profits after January earthquake claims, while stock valuations and foreign exchange contracts showed smaller gains under accounting rules compared with last year.