The world’s electric vehicle (EV) market is about to enter a “warring states” phase and Taiwanese companies in the supply chain have to be ready to seize their chance, Taiwan External Trade Development Council (TAITRA, 外貿協會) chairman James Huang (黃志芳) said on Tuesday last week in Taipei.
Huang’s remarks came as governments worldwide implement stricter auto emission standards and favorable policies on purchasing electric vehicles, and as the industry has surged over the past few years.
Many countries are also promoting buying electric vehicles as part of economic stimulus measures, despite the potential lasting effects of the COVID-19 pandemic on auto sales.
Photo: Lin Jin-hua, Taipei Times
According to a Deloitte report issued in July last year, EV sales are expected to grow by a compound annual growth rate of 29 percent over the next 10 years, with sales rising from 2.5 million units last year to 11.2 million in 2025, and reaching 31.1 million units by 2030.
“But which role will we [Taiwanese companies] play? Will we be the original equipment manufacturers? System suppliers? Or will we have our own brands?” Huang told a news conference to promote 2035 E-Mobility Taiwan, a three-day technology expo from Oct. 20 at the Taipei Nangang Exhibition Center Hall 2.
The trade show aims to connect Taiwanese companies in the EV supply chain with major global players, as well as help Taiwanese firms find a niche in the market, Huang said.
Delta Electronics Inc (台達電), a leading EV power supply producer, has worked closely with auto manufacturers in Europe and North America for more than a decade, hoping that rising adoption of EVs led by the clean energy trend could support the company’s long-term growth, Delta chief brand officer Guo Shan-shan (郭珊珊) said.
Delta has had a long and difficult road to profitability since entering the EV space 12 years ago, Guo said. The company is now a tier-1 supplier, working directly with auto manufacturers, and it sees good visibility for orders in the charging station space, Guo added.
“When we were approached by Tesla Inc, our founder could smell the profit, but the automotive sector was difficult to break into,” Guo said.
Since Tesla came to Taiwan to source parts for its first EV, the Roadster, the nation has proved to be a major supplier of EV components, Huang said, adding that this puts Taiwan in “an excellent position” to provide “a complete ecosystem” for EVs.
President Tsai Ing-wen (蔡英文) last week announced that the nation aims to be carbon neutral by 2050, joining pledges from other countries such as the US and the 120 countries in the Carbon Ambition Alliance.
Electric vehicles are a part of Taiwan’s and the world’s plans to reach those goals, Hon Hai Precision Industry Co (鴻海精密) chief technology officer William Wei (魏國章) said.
More than 1,500 companies from 47 countries have joined Hon Hai’s MIH Open Platform Alliance, Wei said, adding that the company hopes to attract more companies focused on software and user experience to the platform.
Hon Hai announced MIH with Yulon Group (裕隆集團) in October last year, with the aim of accelerating EV development. The firms also formed a joint venture in February last year called Foxtron Vehicle Technologies Co (鴻華先進科技) to provide solutions to other automakers.
The alliance is to host a convention on June 25, during which its business model and method of cooperation would be unveiled, Wei said, adding that the alliance would become “fully independent” of Hon Hai on July 1.
Additional reporting by CNA
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