Plug pulled on scooter subsidies

The government plans to pull the plug on a program to subsidize purchases of electric scooters, the head of the Environmental Protection Administration told the Taipei Times yesterday.

The five-year plan launched in 1998 was meant to encourage motorists to buy electric scooters and reduce pollution by providing subsidies of up to NT$15,000 to NT$21,000 per bike.

But consumers have spurned the scooters due to poor battery technology, and so now the government doesn't plan to extend the program after this year.

"From next year the government will stop subsidizing electric scooter purchases because the market has greatly contracted in recent years," Hau Lung-bin (郝龍斌), head of the environmental administration, said yesterday.

Electric scooter sales reached 3,098 units last year. There are roughly 24,000 electric scooters on the road today -- less than 2 percent of the nation's motorcycles.

Hau said because of poor performing batteries and slow technology development, government subsidies weren't likely to help boost future sales.

The government has put up an estimated NT$1.75 billion to encourage the use of electric scooters, including funding research and development.

With a government subsidy, a 1.4-horsepower model goes for roughly NT$25,000. A 3.7-horsepower model runs about NT$29,000.

Manufacturers of electric scooters say the struggling industry will surely die if the subsidies are cut off. "Cancellation of government subsidies will shrink the market, forcing us to eventually close down," said Lai Yi-shen (賴益申), owner of an electric scooter workshop in Tainan.

Lai acknowledged that electric scooters don't perform as well as their gas-guzzling counterparts. Long recharging hours, the hassle of locating recharging stations and a lack power to climb steep slopes have frustrated motorists.

"Only those who have a strong sense of environmental awareness and make short trips within a 40km range will give electric scooters a try," Lai said.

For someone like 32-year-old Tsai Mei-ling (蔡美玲), who spends five to six hours daily on a gas-powered bike to deliver mail, electric scooters could never become a reality, "unless they are as widespread and convenient as motorcycles," he said.

Still, there is some hope that the scooters will one day become the king of the roads, especially as battery efficiency improves.

One new type of battery expected to be introduced by the end of the year will "expand the vehicle's range from 40km to some 200km," said Lin Wen-chi (林文啟), president of Panchiao-based Fuechan Motor Co (富展企業).

Lin said there were numerous advantages to the electric scooter. "The pioneering vehicle, which produces absolutely no air pollution, will eliminate the exhaust puffed out by gas-powered motorcycles on urban streets," Lin noted.

But there are still many obstacles on the road. Recharging facilities are few, and the ones that are available only in certain areas such as MRT stations in Taipei.

Lin urged the government to continue the subsidy program and help the private sector to open more recharging stations.

He said two major companies have shown interest in developing new batteries and setting up battery exchange stations islandwide.

Lin Ming-huang (林銘皇) said he has been riding an electric scooter for three years with little difficulty.

"It's quieter than gasoline-fueled motorcycles. No noise, no air pollution, easy maintenance and my fuel bill is less," the 25-year-old said.