RAC Electric Vehicles Inc revs up on government’s electric transport policy

By Camaron Kao  /  Staff reporter

Thu, Dec 18, 2014 - Page 13

RAC Electric Vehicles Inc (華德動能), which makes electric buses and trucks, yesterday said that its domestic shipments of electric buses would more than double next year on the back of a government policy to increase the adoption of electric vehicles.

The government aims to raise the nation’s number of electric buses to 10,000 units over the next 10 years, starting with 430 units next year, RAC said.

RAC aims to acquire one-fourth of the market next year by selling about 108 buses, up from 53 buses this year, chairman and chief executive Alex Tsai (蔡易忠) told investors yesterday.

This year, RAC holds 90 percent of the market, Tsai said, adding that the declining market share expected next year is due to capacity constraints.

RAC can build between 80 and 90 buses a year, and plans to expand capacity in the second or third quarter next year to produce between 400 and 500 units per year, Tsai said.

In the first half of this year, RAC sold 31 buses and posted revenue of NT$228.05 million (US$7.28 million), according to a filing with the Taiwan Stock Exchange.

RAC swung into the black in the first six months of this year with profit of NT$13.02 million, or NT$0.65 per share, the filing said.

Tsai said the break-even point for the company is selling 60 buses a year.

Last year, RAC reported revenue of NT$57.83 million against losses of NT$60.53 million, or NT$4.73 per share, the filing said.

There are 35 large electric buses and 45 medium-sized electric buses in use in Taiwan, with RAC accounting for 58 percent of the market, Tsai said, adding that nine commuter buses for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s top contract chipmaker, in the Hsinchu Science Park (新竹科學園區) were manufactured by the firm.

The company also plans to sell buses overseas soon, Tsai said.

RAC sells large buses for about NT$5.2 million each and medium-sized coaches for NT$3.15 million, it said, adding that 60 percent of the units are manufactured locally.

Recharging for between five and seven hours, large buses can cover up to 350km, while medium-sized buses average about 280km, Tsai said.

The company is set to debut on the Emerging Stock Market on Tuesday, with an initial public offering price of NT$60.

The Emerging Stock Market is a preparatory board for the nation’s two main bourses: the Taiwan Stock Exchange and the GRETAI Securities Market. Trading on the smaller board is restricted to securities firms, by means of negotiation, making initial public offerings not open to public subscription.

RAC said it plans to apply to shift its listing to the main board in the second quarter of 2016.

Tsai owns 28.9 percent of the company’s shares, while autoparts maker Mobiletron Electronics Co (車王電子) owns 14.9 percent, the company said.