The automobile is one of the most important means of transportation among the population. The automotive industry is both a capital- and technology-intensive sector that represents a crucial component in a number of associated supply chains. According to statistics published by the International Organization of Motor Vehicle Manufacturers (OICA), global auto sales reached 82.68 million vehicles in 2021, up 5% from 2020. Sales in China ranked first in the world, reaching 26.275 million vehicles (32% of global sales) due to the enormous size of its domestic market and the rapid growth of its automotive industry. The breakdown by vehicle type is as follows – passenger cars: 21.482 million vehicles and commercial vehicles: 4.793 million, representing China's dominant role in the global automobile market. The U.S. ranked second with total sales of 15.409 million vehicles (19% of global sales), including 12.059 million passenger cars and 3.35 million commercial vehicles. The third and fourth places went to two other Asian countries, Japan (4.448 million) and India (3.759 million). Refer to the figure above for countries ranked fifth to tenth. On the other hand, data released by OICA also shows that global vehicle production reached 80.15 million units in 2021, an increase of 3% over the previous year.

In Taiwan, automobile sales reached 422,000 vehicles in 2021. According to statistics released by Taiwan Transportation Vehicle Manufacturers Association (TTVMA), the total output of the country's automotive industry in 2021 was NT$707.1 billion, and the industry represents one of the country's most important sectors.

As climate change and net-zero carbon emissions have become the top policy priorities in many countries, Taiwan's National Development Council introduced on March 30, 2022, the "Taiwan's Pathway to Net-Zero Emissions in 2050" initiative, which covers four significant transitions ("Energy transition," "Industrial transition," "Lifestyle transition" and "Social transition") and two major foundations for governance ("Technology R&D" and "Climate legislation") to transition to net-zero emissions. It is not difficult to conclude that vehicles powered by new types of energy will also become one of the focuses of development in the country's automotive industry.