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Taiwan Gov't May Pull Plug on Subsidizing Passenger EVs

2013/07/15 | By Quincy Liang

Low rate of adoption in Taiwan also due to range anxiety

Due to disappointing rates of adoption in electric vehicle (EV) pilot projects in Taiwan, the government reportedly plans to stop subsidizing purchases of passenger EVs, to instead divert budgets to promote electric buses.

The government's possible change of course immediately triggered strong objections from the EV industry, who urges continuing the subsidies and carrying out the second-stage EV pilot projects, lest more than NT$10 billion (US$333.3 million) already invested should be in vain.

Taiwanese government reportedly plans to stop subsidizing purchases of passenger EVs.
Taiwanese government reportedly plans to stop subsidizing purchases of passenger EVs.

Similar Elsewhere

An EV-related manufacturer who wanted to remain anonymous says that the low rate of adoption of EVs in pilot projects is actually similar to those achieved in other nations, with the major cause being insufficient infrastructure to rid of range anxiety.

According to industry sources, around 300 passenger battery electric vehicles (BEVs) have been used in EV pilot projects on the island, with the suppliers being Luxgen Motor Co., Ltd. (LUXGEN brand) and Yulon Tobe Motor Co. (tobe), Yulon Nissan Motor Co. (Nissan), and Hotai Motor Co. Ltd. (Toyota). The government originally targeted adoption of some 3,000 passenger BEVs within two years in the first-stage. Compared to, the sources say, the 3.3% in China, 2.5% in Los Angeles, 2.33% in Berlin, and 0.3% in North Ireland etc., Taiwan's rate is quite high in fact.

In industrially advanced nations, a local automaker says, governments do not stop subsidizing EV purchases due to low rate of adoption, but continue to pour more resources to encourage such purchase. China, for example, has announced continued budgeting and extending subsidies for EVs.

Successful example

Japan has succeeded in promoting EV adoption, firmly adhering to its policy goal to subsidize EVs to encourage consumers to access this alternate energy transport, hence Japanese EV makers as Toyota and Honda now leading the global EV market.

The Taiwanese government has also mapped out its national EV promotion plan, including carrying out EV pilot projects around the island, commissioning key research institutes, especially the Taiwan Automotive Research Consortium (TARC) consisting of the Automotive Research and Testing Center (ARTC), the Mechanical and System Research Laboratories (MSL) of Industrial Technology Research Institute (ITRI), the Material and Chemical Research Laboratories (MCL) of ITRI, the Chung-Shan Institute of Science and Technology (CSIST), and Hua-chuang Automobile Information Technical Center Co. Ltd. (HAITEC) to develop assembled EVs and key systems, parts and infrastructure.

Companies in Taiwan, including assembled-EV makers, have been focusing on the EV industry to have achieved initial results. Fukuta Elec. & Mach. Co., Ltd., for example, is the supplier of electric motors to the American EV maker Tesla. There are many engaged in joint R&D projects conducted between TARC members and local private makers, who urge the government to adhere to its policy goal to promote the EV industry on the island, instead of backing away when initial targets have not been met.

Responding to the government's possible decision to stop subsidies, Shen Jung-chin, director general of the Industrial Development Bureau (IDB), says that the bureau will discuss with local EV makers to better understand their willingness and opinions, then decide if to extend the subsidies.

With the subsidies for TES (Taiwan E-Scooter Standard)-certified electric scooters sold in Taiwan to expire by the end of the year, Shen says the IDB will evaluate whether to continue the program the second time.

E-scooter sales in Taiwan still lag governmental targets.
E-scooter sales in Taiwan still lag governmental targets.
The rate of e-scooter adoption in the government's promotional plan, as of May, is about 12%, to which the IDB attributes the cold global economy that has resulted in low oil prices, hence dampening willingness to replace gasoline powered PTWs with e-scooters. In addition, infancy of key e-scooter parts such as motors, controllers and batteries result in higher production cost, coupled with clearly insufficient recharging infrastructure, also hampers purchase willingness.

Shen stresses that the IDB will also negotiate with local EV parts and system makers to find out difficulties in achieving higher local-content rate.

Industry sources say that signs point toward the government might cut goals for the total number of intelligent EVs in EV pilot projects.

Caption 1: Taiwanese government reportedly plans to stop subsidizing purchases of passenger EVs.

Caption 2: E-scooter sales in Taiwan still lag governmental targets.