Page 26 - TTG-Taiwan Transportation Equipment Guide (TTG)2022-04 Edition

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Industry News

prices thanks to removing the tariffs imposed E-Mobility Taiwan as a global go-to platform to
on Japanese auto parts, and improve export make connections in the EV ecosystem. In a similar
performance in the same vein. vein to how the island became a major hub for
ICT and semiconductor production, the idea is to
The traditional auto parts supply chain, however, turn Taiwan into the world’s supplier of EV-related
relies on the traditional model of “just-in-time” (JIT) products.
production. The JIT model was sufficient for the
industry in pre-pandemic times, though restrictions, Due to Taiwan’s high population density,
factory closures, and port congestion had led to electric scooters were the focus in the automotive
backed-up supply chains, with many companies in and transportation sectors’ bid for electrification.
Taiwan reporting that despite the influx of orders Infrastructure for charging EVs and improving mile
coming in, shipments have been difficult to digest range in the past years have helped popularize EV
due to congestion. Similar to what market analysts ownership in Taiwan; seldom one could see Tesla’s
have predicted last year, companies are attempting on the road a few years ago, and now, they can be
to mitigate the risks of having a supply chain spread commonplace in some of the island’s biggest cities.
out between countries, by localizing production or With significant industry movements like Foxconn
narrowing down the scope into a specific region. As creating the MIH EV Open Platform and the Foxtron
such, trade barriers like tariffs are expected to have brand in collaboration with Taiwan's Yulon Motor,
a lesser impact in the new trading environment. rolling out EV prototypes last year, the great strides
to push innovation in this emerging market are here
Taiwan Aims for Tier 1 Market to stay.

Contrary to Taiwan’s traditional auto parts According to the government’s statistics on
sector, which still saw a majority of its business EV, or more broadly, new energy-powered vehicle
in the aftermarket industry, the Taiwan External ownership in Taiwan, just last year, the island saw a
Trade Development Council (TAITRA) is seeking to 42.4% YoY increase, marking sales of 68,000 units.
elevate Taiwan to be able to produce Tier 1-quality Among that figure, HEVs made up 58,000 units. EV
EV suppliers. Among the five initiatives that TAITRA ownership figures are expected to continue their
aims to pursue in 2022, is promoting the 2035 fast, upward growth this year as well.

Taiwanese suppliers showcase electric vehicle charging solutions at the 2035 E-Mobility Taiwan show in 2021.