To support its transition from gas guzzlers to electric vehicles (EVs), China has rolled out more public charging facilities than the rest of the world combined. The problem is that many are barely being used.
Research from the Oxford Institute for Energy Studies found that public charging posts in China are used about once a day, with some connectors along highway routes averaging 1 percent utilization.
The low usage shows that investments other countries are making to support EV adoption could take time to pay off.
Photo: Bloomberg
“Utilization of chargers is fairly low, so you’re not going to necessarily make a lot of money by having a charging business,” Oxford researcher Anders Hove said.
There needs to be “government regulation to make sure the quality is kept up,” he said.
As China is home to the largest EV market, it is a test case for the global vehicle transition.
China installed more than 1.8 million public chargers as of last year. The rest of the world combined has fewer than 1 million, with the vast majority in Europe.
All those chargers in China delivered about 0.25 percent of the country’s total electricity consumption last year, Hove said, citing data from the China Electric Vehicle Charging Promotion Alliance.
Although utilization is low, China’s chargers delivered enough power in December last year to move each EV in the country about 1,000km, suggesting that many drivers are using public facilities regularly, Hove said.
Two of China’s largest installers are state-owned utilities to whom public good can be as important as profit margins. The nation also has ubiquitous and easy-to-use mobile payment systems that make transactions hassle-free.
However, Hove, who frequently takes EV road trips in China, has often encountered public chargers that are under maintenance or no longer working.
In Beijing, he found two chargers were installed on a pedestrian-only street, an indication of how little attention some companies have paid to how the equipment is used.
At least half of EV buyers in China can access a private charger, the Oxford Institute report said.
“China has built out this huge charging network, and it’s not clear that it’s even needed,” Hove said.
Japanese technology giant Softbank Group Corp said Tuesday it has sold its stake in Nvidia Corp, raising US$5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this fiscal year from a year earlier. Tokyo-based Softbank said it sold the stake in Silicon Vally-based Nvidia last month, a move that reflects its shift in focus to OpenAI, owner of the artificial intelligence (AI) chatbot ChatGPT. Softbank reported its profit in the April-to-September period soared to about 2.5 trillion yen (about US$13 billion). Its sales for the six month period rose 7.7 percent year-on-year
CRESTING WAVE: Companies are still buying in, but the shivers in the market could be the first signs that the AI wave has peaked and the collapse is upon the world Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported a new monthly record of NT$367.47 billion (US$11.85 billion) in consolidated sales for last month thanks to global demand for artificial intelligence (AI) applications. Last month’s figure represented 16.9 percent annual growth, the slowest pace since February last year. On a monthly basis, sales rose 11 percent. Cumulative sales in the first 10 months of the year grew 33.8 percent year-on-year to NT$3.13 trillion, a record for the same period in the company’s history. However, the slowing growth in monthly sales last month highlights uncertainty over the sustainability of the AI boom even as
AI BOOST: Next year, the cloud and networking product business is expected to remain a key revenue pillar for the company, Hon Hai chairman Young Liu said Manufacturing giant Hon Hai Precision Industry Co (鴻海精密) yesterday posted its best third-quarter profit in the company’s history, backed by strong demand for artificial intelligence (AI) servers. Net profit expanded 17 percent annually to NT$57.67 billion (US$1.86 billion) from NT$44.36 billion, the company said. On a quarterly basis, net profit soared 30 percent from NT$44.36 billion, it said. Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said earnings per share expanded to NT$4.15 from NT$3.55 a year earlier and NT$3.19 in the second quarter. Gross margin improved to 6.35 percent,
BUST FEARS: While a KMT legislator asked if an AI bubble could affect Taiwan, the DGBAS minister said the sector appears on track to continue growing The local property market has cooled down moderately following a series of credit control measures designed to contain speculation, the central bank said yesterday, while remaining tight-lipped about potential rule relaxations. Lawmakers in a meeting of the legislature’s Finance Committee voiced concerns to central bank officials that the credit control measures have adversely affected the government’s tax income and small and medium-sized property developers, with limited positive effects. Housing prices have been climbing since 2016, even when the central bank imposed its first set of control measures in 2020, Chinese Nationalist Party (KMT) Legislator Lo Ting-wei (羅廷瑋) said. “Since the second half of