In 2024, Taiwan's automotive powertrain market, though relatively small, plays a vital role in the Asia Pacific region, with a valuation of USD 8.53 billion. The nation's strength in electronics and battery innovation is a key driver of its electric vehicle (EV) powertrain development. Taiwan's market has shown steady growth, influenced by global EV sales totaling 6.9 million units in 2023. From 2025 to 2031, the market is expected to expand at a regional compound annual growth rate (CAGR) of 9.20%, supported by rising demand for advanced powertrain technologies and government incentives promoting EV adoption. Nonetheless, challenges persist, including limited domestic vehicle manufacturing and heavy dependence on exports. Strengthening ties with international automakers will be crucial to boosting Taiwan’s market position.
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