Does Taiwan Need to Popularize Electric Vehicles Now?
Introducing electric vehicles is one of the ways to achieve net-zero emissions transport. But it is not the only method. This explains why electric vehicle subsidies are limited and why their introduction is slow.
“Increasing purchase incentives and reducing the costs of transitioning to hybrid and electric vehicles are the most effective ways to boost consumers’ willingness to buy electric vehicles,” said Guo Jin-Cheng, Secretary-General of the Taiwan Smart Mobility Association (SMAT). He believes that government incentives are crucial in encouraging electric vehicle uptake.
However, is it necessary for the government to provide substantial subsidies for electric vehicles?
In 2022, the Norwegian government spent an additional 39.4 billion Norwegian kroner subsidizing electric vehicles. Energy exports brought in approximately 100 billion Norwegian kroner. This shows that the cost of promoting electric vehicles is fairly substantial. Whether the Taiwan government should follow the trend remains debatable.
Norway has an average vehicle ownership of 0.53 per person, whereas Taiwan has less than 0.02 per person. This means that in Taiwan, with its diverse transport options, cars are not a necessity in daily life. There may not be a compelling need for the government to allocate large sums of taxpayer money to support electric vehicles. Achieving zero carbon emissions does not solely rely on electrifying transportation. In the current state, the Taiwanese government may not need to significantly increase subsidies to boost the market share of electric vehicles. This is not a complete dismissal of the Norwegian government’s actions but rather an acknowledgment that Taiwan faces different circumstances.
Looking at it from a consumer perspective, issues such as charging infrastructure, range anxiety, price, and variety of options play significant roles in influencing consumer choices. Taiwan’s expanding charging network can address the first two issues. Despite limited government subsidies, the most critical concern, price, should improve as more brands introduce affordable electric vehicles. Market competition will help tackle the issues of high prices and limited options.
As these problems are addressed, early adopters in Taiwan will eventually benefit from a more mature electric vehicle market. Once early adopters are exposed to more refined electric vehicle products, they are likely to attract a significant number of early majority consumers. This will help bridge the gap and accelerate the adoption of electric vehicles in the Taiwanese market.
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