TAIPEI, Taiwan--(BUSINESS WIRE)--Governments all over the world have been responding to the impending exhaustion of global energy resources and the problem of greenhouse gas emissions by promoting electric vehicle initiatives. The world’s leading car manufacturers are all planning to roll out mass-market electric cars in the 2011 – 2012 timeframe, and the global electric vehicle market is forecast to enter a period of dramatic growth starting in 2015.
China is set to become the world’s largest car market. At the same time, the Chinese government is working actively to promote the development of the electric vehicle market in China through the use of policy tools. During the period of implementation of China’s 11th Five-year Plan, the Chinese government will be investing 7.5 billion Yuan in the development of vehicles powered by alternative energy sources, and a government subsidy of 60,000 Yuan will be provided for every electric vehicle sold. In 2010, China’s Ministry of Industry and Information Technology announced the New Energy Vehicle Promotion Plan, whereby the government will invest over 100 billion Yuan during the period 2011 – 2020 to promote energy conservation and develop the “new energy vehicle” industry supply chain. The electric vehicle industry thus has more growth potential in China than in the advanced nations; companies from all over the world will be looking to work together to develop the China market.
By comparison with European, North American and Japanese companies, Taiwanese firms benefit from sharing a common linguistic and cultural background with their Chinese counterparts. Some Taiwanese companies have been active in the China market for two decades, and have acquired an in-depth understanding of Chinese business culture. This insider knowledge will be very helpful for international corporations seeking to develop the business opportunities that the Chinese electric vehicle market offers. Foreign companies can also benefit from Taiwanese firms’ expertise in both large-volume manufacturing and the small-volume manufacturing of large numbers of different product types; by working with Taiwanese partner companies, international corporations can rapidly reduce their manufacturing costs and retail prices. This in turn will enable consumers in China to purchase high-quality electric vehicles at reasonable prices, thereby boosting electric vehicles’ penetration rate in the China market. More importantly, international corporations can rest assured that their commercial secrets will receive full protection, avoiding the risk that key technology may be leaked to their competitors. In addition, the reciprocal commitments made by Taiwan and China under the Economic Cooperation Framework Agreement (ECFA) and the two-way interaction that ECFA is sure to stimulate will make collaborating with Taiwanese companies on development of the Chinese electric vehicle market an even more attractive option!
International corporations should lose no time in investing in Taiwan, so that they can make effective use of collaborative partnerships with Taiwanese companies to speed up the adoption of existing electric vehicle technology and to work together on the large-scale commercialization of electric vehicles and related products. The business opportunities available in the Chinese electric vehicle market offer a significant opportunity to boost sales revenue; developing the China market through collaboration with Taiwanese firms makes it possible to minimize risk relating to the special political and economic circumstances in China, thereby facilitating companies’ sustainable growth and development.
“Smart” electric vehicles constitute one of the four “smart” industries whose growth the Taiwanese government is promoting. Taiwan’s Executive Yuan has approved the Intelligent Electric Vehicle Development Strategies and Action Plan, whereby a “model” pilot project will be initiated in 2011. In addition, the Ministry of Economic Affairs has formulated the Key Points Regarding the Provision of Subsidies and Incentives for Electric Vehicle Development, under which the government will be subsidizing the purchase of electric vehicles by consumers in Taiwan. Through these measures, the Taiwanese government is actively promoting the development of the electric vehicle industry in Taiwan.
In the new era that the ECFA agreement has ushered in, government agencies in Taiwan are working actively to coordinate resources, and are implementing a worldwide business promotion initiative. Electric vehicles are one of the key items targeted in this initiative; Taiwan is looking to work together with companies from all over the world to create a bright future for the electric vehicle industry. For more information about investing in Taiwan, visit the InvesTaiwan website at http://investtaiwan.org