Taiwan Electric Vehicles

Despite the prominent role that Taiwan’s electric vehicle (EV) component suppliers play in Tesla’s global market and technology development, Taiwan still has a long way to go to catch up with most other markets around the world in the deployment of EVs domestically. However, Taiwan government policies are driving consumers to purchase these low or zero-emission vehicles, in line with the goal of achieving net zero carbon emissions by 2050.

As of 2022, electric passenger cars made up 3.4% of total registrations in Taiwan. EV sales in Taiwan jumped from 7,064 units in 2021 to 16,106 units in 2022, representing an annual growth rate of 128 percent and setting a record. Tesla remains the dominant player in the Taiwan EV market, accounting for 75% of all passenger EV sales, followed by European brands, including BMW and Volvo. Korean brands Kia and Hyundai have outperformed the traditionally dominant Japanese brand Toyota in the EV market in Taiwan. These trends point to opportunities for new players to enter the market.

Government policy and incentives

On March 30, 2022, the Taiwan National Development Council released a report titled “Taiwan’s Pathway to Net-Zero Emissions in 2050”, which lays out the government’s plan to align Taiwan with global commitments reached at the 2021 COP26 climate conference in Glasgow, Scotland. This plan is supported by 12 “Key Strategies” that are partly planned and executed by Taiwan’s Ministry of Transportation and Communications (MOTC). One of MOTC’s goals to be attained under these strategies is full electrification of city buses and government vehicles by 2030, along with 100 percent market share of zero-emission passenger cars and motorcycles by 2040.

To encourage the development of EVs, several initiatives are being executed. Current incentives exempt these vehicles from the Automobile Fuel User Fee and the Commodity Tax and Vehicle License Tax until December 31, 2025. In addition, local government-owned parking lots also provide partial exemption or discounts on parking or charging fees for EVs. Moreover, the government is placing a strong emphasis on encouraging the adoption of E-buses and E-scooters. The goal is to replace all 11,700 city buses with electric ones by 2030, using subsidies valued at $2.2 billion. The government aims to subsidize the purchase of 500,000 electric scooters/motorcycles with a fund valued at $197 million.

For more information on market opportunities in Taiwan, please contact Madison Yao, Commercial Service Taiwan, at Madison.Yao@trade.gov