Japan, US and European auto majors have started expanding in the Taiwan market, realizing the inherent export potential. This has been aided by Taiwan's further opening of its market in order to join the World Trade Organization (WTO). The gradual opening of Taiwan's market has greatly affected the operations of the existing domestic and foreign vehicle manufacturers. Lot of local manufactures have succumbed to the stiff competition, but others have channeled substantial resources into upgraded facilities and are collaborating even more closely with their foreign partners. The latter have become more competitive and have increased their market share. The sweeping changes in import policy will clearly rewrite the market trends.