Yulon Develops Electric Cars for the Global Market

Backed by Taiwan's well-founded IT (information technology) industry, Yulon Motors is setting its sights on the world's emerging electric car market. This market presents a lucrative opportunity for Taiwan to develop another mainstay industry with an annual output exceeding NT$1 trillion, said Kenneth Yen, chairman of Yulon Motors, in a recent interview with the Chinese-language Economic Daily News, sister publication of the Taiwan Economic News.

The local information electronics and auto electronics industries can help the island's automakers develop motors and related electronic control devices for electric cars at a cost even lower than that of engines for gasoline-powered cars, Yen said. In addition, the cost of installing and recharging electric car batteries, plus the cost of maintenance, is less than the cost of fuel for gasoline cars.

Last year's soaring oil prices, Yen noted, produced a valuable opportunity for the development of electric cars in the global auto market, encouraging many countries-including the United Kingdom, Sweden, and China--to step up their efforts to develop such vehicles. The global market potential for electric cars is greater than that for solar energy and wind power, according to Yen.

Assuming that Taiwan-made electric cars can capture a 3% share of the global auto market, which is estimated at 70 million units worth US$1.4 trillion annually, they will give rise to the birth of another mainstay industry with an annual output reaching NT$1.4 trillion (US$41 billion at N$34:US$1), Yen speculated. In addition to complete cars, Taiwan also has an advantageous position for the development of electric car components and parts for the world market.

Yen urged the government to help foster the development of a local electric car industry by mapping out a complete plan, including the determination of a mode of operation, the construction of battery charging stations, and the designation of electrical cars as an industry for priority development.

Attracted by the huge potential in the global market, Yulon has been working hard to develop an electrical version of its own-brand Luxgen sedan through cooperation with major domestic IT firms such as HTC, Ever-Light, and E-ton, as well as AC Propulsion of the U.S., a noted electric car system manufacturer. A prototype electric car bearing the Luxgen brand has already been developed, in fact, and is scheduled to hit the market in 2010.

The electric model will be critical for the success of Yulon's effort to develop its own-brand Luxgen car even as it carries on with its main business of producing Nissan cars. The Luxgen project is a joint venture with the Zhongyu Group of China, which has a production base in Xiaoshan, Hangzhou. After an investment of some NT$7-8 billion (US$206-235 million), the first Luxgen debuted in Taiwan in January this year. The car features intelligent functions thanks to the installation of 24 CPUs, compared with just seven or eight CPUs in Mercedes Benz and BMW vehicles.

In addition to the electric car, Kenneth Yen also reported that Yulon will roll out a national car, priced under NT$400,000, to cope with inevitable opening up of the auto markets of Taiwan and China to each other, paving the way for an influx of low-priced Chinese cars into the local market. Yulon may even import Chinese cars before remodeling and selling them in Taiwan, according to Yen.