Yulon Motor Co. reported a steep decline in first-quarter earnings as Taiwan’s automotive market continues to cool amid shifting consumer preferences and economic headwinds.
The Taiwanese automaker’s net income fell 49.7% to NT$436 million (US$13.5 million) in the three months ended March, according to a board meeting statement released Wednesday. Revenue dropped 15.24% to NT$17.59 billion (US$545 million), while earnings per share declined to NT$0.42.
The company cited a significant contraction in Taiwan’s auto market, with fewer vehicle models available locally affecting registration numbers. Its mainland China operations also struggled as the surge in new energy vehicles hampered traditional auto sales.
Yulon’s investment businesses, including China Motor Corp. and Yulon Nissan Motor, experienced parallel declines in both sales and profitability. Additionally, consumer purchasing decisions were delayed by discussions about potential vehicle tax reductions.
Despite current challenges, Yulon is pushing forward with diversification efforts. The company announced a partnership with Mitsubishi Motors and Foxconn’s Foxtron Advanced to develop electric vehicles. Under the agreement, Yulon will handle production at its Sanyi manufacturing facility, with vehicles expected to launch in Australia and New Zealand in the second half of 2026.
