Official Effort in Taiwan to Push e-scooters Picks Up Speed

As Taiwan continues to try to be politically-correct by staying with the global trend to become more green in its transportation options, mainly backed by policymaking that aims to reduce carbon emissions on the island through developing the electric vehicle (LEV) industry, with the authorities having been investing increasingly more resources into such program. And the measure currently is to propose offering subsidies to LEV makers and buyers.

LEVs generally include sub-60W electrically-driven vehicles, typically being lightweight, compact as electric bicycles and e-scooters.

In mid-July, the Ministry of Economic Affairs (MOEA) announced that it would begin to subsidize each certified e-scooter with plug-in, detachable lithium-ion battery pack with NT$8,000 to NT$11,000 (US$246 to US$339 at US$1: NT$32.5).

To encourage more makers to join the strategically-promoted industry, the MOEA will also subsidize up to NT$24.5 million (US$753,846) e-scooter makers who achieve sales volume exceeding the threshold set by the Industrial Development Bureau (IDB) under the MOEA.

At least two local companies, including E-Ton Power Tech Co., Ltd. and Kwang Yang Motor Co., Ltd. (KYMCO), have applied for such subsidy, with two or three more e-scooter makers expected to do the same, IDB said.

In Taiwan, the e-scooter subsidy program starts November this year for e-scooters, with each to be subsidized either NT$8,000 (US$246) or NT$11,000 (US$339) according to the vehicle's performance.

In the first year, the IDB expects to subsidize 20,000 e-scooters, with the volume expected to reach 160,000 units by 2012.

Taiwan's e-Scooter Subsidy Program
Consumers	2009-2010: 1. NT$8,000 for ultra-light e-scooter. 2. NT$11,000 for light e-scooter. 2011: 1. NT$7,200 for ultra-light e-scooter. 2. NT$10,000 for light e-scooter. 2012: 1. NT$6,500 for ultra-light e-scooter. 2. NT$8,000 for light e-scooter.
Battery-recharging Operator	NT$100,000 for each recharger.
Maker	2009: NT$16 million per maker if volume sold exceeds more than 8,000 units. 2010: NT$24.5 million per maker if volume sold exceeds 14,000 units. 2011 & 2012: NT$20 million per maker if volume sold exceeds 16,000 units.
Source: IDB under MOEA.

Industry sources say that Taiwan is one of the best locations in the world to develop the LEV industry, due mainly to the exiting number of riders of powered two-wheeler (PTW), the well-established PTW industry, supply chains, superior R&D in electronics, electro-mechanical and energy industries.

The key to the LEV subsidy program is the vehicle performance and safety standard specifications that have been announced by the MOEA, since such parameters would affect qualifications of potential makers. One such test standard specifies that assembled vehicles, battery recharging system, and detachable battery pack must be inspected thoroughly.

The Ministry has also specified several qualified testing/inspection units, including the Automotive Research & Testing Center (ARTC) responsible for testing assembled vehicles, the Electronics Testing Center (ETC) for the recharging system, and ETC/ Industrial Technology Research Institute (ITRI) for battery packs. The MOEA claims that the division-of-labor testing program is expected to assure safety and reliability of LEVs sold in Taiwan, with such specifications to motivate the local LEV industry to upgrade technical capability.

E-scooter Performance, Safety Testing Processes
Category	Assembled Vehicle	Lithium-ion Battery	Recharging System
Testing Unit	ARTC	ITRI / ETC	ETC
Testing Item	1. Maximum Speed Acceleration 2. Climbility 3. Cruise Range 4. Electromagnetic interference (EMI) 5. Special Safety Tests 6. Acceleration Duration 7. Battery Residual Indication	ITRI: 1. Over-charge 2. External short-circuit 3. Partial short-circuit 4. Broken ETC: 1. Impact 2. Dropping 3. Vibration 4. Low-power 5. Temperature 6. External indication and structure etc.	1. External indication and structure 2. Discharging 3. Space 4. Capacity and on/off 5. Inlet IP55 6 Temperature-rising 6. Impact 7. Crush (rolling) 8. Ground electric resistance 9. Maximum voltage 10. Insulation 11. Contact current 12. Durability
Source: MOEA.

The MOEA says that it referred to major and related battery-safety standards such as CNS, UL, IEC, BATSO etc. to draft such specifications. In addition, batteries for subsidized e-scooters have to be certified by the Ministry of Transportation and Communications (MOTC) for reliability in vehicle applications. Suppliers of batteries also have to set up maintenance systems as well as propose total operational plans.

According to the MOEA, most participants report an existing, well-established supply chain in the local PTW industry, a capability that allows many local assembled vehicle makers to invest in the e-scooter industry. Senior MOEA officials say that the program focuses on not only upgrading industrial capability and capacity of the local LEV line but also, more importantly, long-term and sustainable development of the emerging industry on the island after the four-year subsidy program.

The officials also point out that most Taiwanese companies lack private brands, despite being able to turn out many good-quality, innovative products on either original equipment/design manufacturing (OEM/ODM) basis. So, they urge local company with intention to develop LEV products to rapidly and effectively upgrade various skills as marketing, design capability etc., forgoing underselling that would usually cause vicious cycling. That's the major reason for the MOEA to map out the overall subsidy program for both consumers and makers, they explain, because the different levels of subsidies are expected to more effectively encourage LEV makers with own brands in Taiwan to upgrade overall industrial capability and added-value.

Some companies are already developing, producing key parts for e-scooters, according to MOEA officials, who also show strong willingness to work with global LEV makers to set up core technical advantages and global competitiveness, as well as reporting that makers agree, backed by such official efforts, Taiwan is expected to become a global design, development, production, and marketing center in the e-scooter industry.

Makers' Views

E-Ton Power Tech Co., Ltd., one of the first few e-scooter makers with commercialized e-scooters, suggests the government help promote the practical merits of riding e-scooters, an effective way to aggressively promote the e-scooter industry and market development in Taiwan.

First, E-Ton says, the government should provide the subsidy amounts in the shortest period and easiest way so as to not let consumers face any inconvenience when they purchase an e-scooter. Related government authorities should also modify existing rules and regulations or propose new ones to help popularize such new type of transportation vehicles, such as the tax breaks, reduction or immunity for e-scooters. The company also urges the government to simplify and testing procedures or cut the testing costs so as to more smoothly achieve its goal to see about 160,000 e-scooters sold over next four years. Finally, E-Ton says, the central and regional governments may be can follow the steps of many industrially advanced nations to promulgate regulations to ban traditional internal combustion engine (ICE) PTWs from riding in some assigned areas so as to preserve the air quality and popularize e-scooters.

Wiz Technology Co., Ltd., an electric-power propulsion solution provider to e-scooter makers, appreciates the official incentives for the e-scooter industry. The firm's president Ma Bin-yen says that as a system supplier his company will try as hard as possible to cooperate with assembled-vehicle makers and try to push newer and better products in lower cost. As the government's subsidy program is applicable only to e-scooters and e-bikes with operation power under 48V, Ma says that the voltage limitation will be a challenge to the vehicle performance and cost. He urges the government to provide higher commodity-tax reduction for e-scooters so as to more effectively help popularize such environment-friendly vehicles.

Amita Technologies Inc., a lithium-polymer battery maker, points out that the successful development of high-efficiency lithium-ion batteries has pushed the whole e-scooter industry development one big step ahead and discarded the past bothers of heavy-weight lead-acid batteries.

The company suggests the government to pay more attention to upgrading battery technology in Taiwan, urging local e-scooter makers to maximize the self-content rate when sourcing batteries, motors, and power control systems.