The economics ministry is pushing forward a plan to cut tariffs on imported automotive parts in an effort to stimulate the local auto industry.
Domestic car manufacturers have seen their market share dip from 77% in 2010 to 45% in August this year. This is the first time that foreign brands have overtaken local carmakers.
According to reports from the finance and economics ministries, the total output of the domestic auto industry is worth NT$600 billion (US$19.7 billion). The sector employs over 100,000 workers.
In order to stimulate the sector, the economics ministry has proposed reducing tariffs on nine types of automotive parts. The ministry says this will lead to a drop in tax revenue worth NT$1.326 billion (US$45 million). However, the ministry also says this loss will be offset by a growth in business worth the same amount.
The proposal has been scheduled for legislative review on Wednesday.