According to March 20 data this year, the Taiwan market boasts over 40 EV models available for sale. Apart from the CMC E300 commercial van, the most affordable EV is the Luxgen n⁷ standard version, priced at NT$1,099,000. Despite being competitive, this price remains at least 10% higher than the average consumer's budget of around one million dollars. Budget constraints and misconceptions about range anxiety often lead the general public to exclude electric cars from their considerations. Concerns about lithium-ion battery durability and driving range further render them hesitant about purchasing EVs. Yet, most consumers are aware that there is a significant shift on the horizon. Countries worldwide are moving toward banning the sale of gasoline/diesel-powered vehicles, with a global target of 2025. In Taiwan, the current policy aims to halt the sale of fossil fuel vehicles by 2040. If this policy is timely implemented, the fossil fuel vehicles purchased today will be the last generation. We ask the question of particular interest: Will there be a market for second-hand fossil fuel vehicles in a decade?
Let's dissect the situation from a different perspective. In 2022, global automobile sales reached approximately 80 million units. Luxury brands accounted for 10 million units or so. In 2023, EV sales globally surpassed the 10-million-unit mark. This tells us that while competing in the luxury car market at similar price points, EV manufacturers also need to extend their reach into the mainstream price range of traditional vehicles, enough for general consumers to consider buying EVs. Tesla has been strategically lowering its prices since the start of last spring. What is the goal? To penetrate the heart of the auto market, i.e. the main price band, and broaden their customer base. Tesla achieves cost efficiency through innovative approaches, including diecast chassis, state-of-the-art manufacturing process, big data analysis, and AI-driven automation. Moreover, Tesla is poised to introduce a US$25,000 model (rumored to be called the Model 2 or Model Q). Coincidentally, the Volkswagen Group (VAG) plans to launch the ID.2 electric car in 2026, priced around 25,000 euros. I believe by the end of 2026, affordable imported EVs with a final price range of NT$800,000-1,000,000 will become available in the Taiwanese market.
In addition, an increasing number of Chinese autonomous brands will be entering the Taiwan market either through local assembly or direct import from third countries. The MG brand, brought in by China Motor Corporation (CMC) for local production, has yielded remarkable sales results in the market thanks to the company's product strategy that entails a high cost-performance ratio (C/P). This success has also served as inspiration for many Taiwanese carmakers. If other manufacturers can swiftly follow suit, we may witness the availability of more products similar to MG's offerings in the Taiwan market by early 2025. I figure these brands will no doubt adopt MG's high C/P model in pricing to gain market recognition. If so, it can well be a boon for consumers torn between fossil fuel cars and electric cars.
If you, as a consumer, are not considering the options mentioned above but still want to purchase an electric car at a price comparable to that of a fossil fuel car, I'd like to offer some personal suggestions for your consideration. If your current gasoline-powered car is still functional, consider postponing its replacement and waiting for more affordable electric cars to hit the market. If you urgently need to buy or replace a car, consider a long-term lease for a newer fossil fuel model. When the lease period expires, you can then decide whether to switch to an electric model for your next car. If you are sold on EVs but just prefer to wait for more appealing pricing, consider a 3- to 5-year long-term lease that allows you to purchase the EV should you choose to do so at the end of the term. This way, you get to experience the unique driving pleasure, lower maintenance costs, and charging benefits compared to traditional internal combustion engine vehicles.
EVs are gaining traction in Taiwan. Last year, they accounted for over 5.2% of the market share, with nearly 25,000 units sold. There are numerous articles across various social media platforms discussing the unboxing of various electric cars and comparing their costs to those of fossil fuel cars. Feel free to explore this information for a detailed comparison. I recommend searching on YouTube for a female owner who used her original Infiniti Q30 for four years before purchasing a Tesla Model 3. She has meticulously recorded all the expenses from the beginning of the purchase and explained the differences between the electric car and the gasoline car. Referring to her insights should provide you with a slew of ideas and allay some of your wavering.
Finally, I'd like to point out that car purchases extend beyond a purely logical analysis of costs and considerations for objective environmental changes. Emotions, such as subjective brand and model preferences, and external influences from friends, family, and even neighbors weigh more heavily on the decision to buy a car. In this once-in-a-century transformation of the automotive industry, just listen to your own heart and make a decision that brings you happiness. Whether it's sharing a joy ride with your loved ones or driving around freely, enjoying some me time, the right way is always the one that resonates with your inner compass.
About the author - Kenny Liu
Graduated from Dept. of Aeronautics and Astronautics, Cheng Kung University in 1988, started his auto industry career since July 1990 after two year military service. Starting as a service engineer and a temp technician, product marketing specialist in Peugeot/ Daihatsu, marketing and dealer channel specialist in VW LCV from March 1992, then field manager in GM Taiwan from Feb. 1994, sales and service / parts head in Ford Lio-Ho from Sep. 1998 till retirement in May 2019. Kenny then started to work for JLR Taiwan as sales/service head and consultant/ lecturer. After that, he was invited to work at a Suzuki dealer of Taipei as the general manager until April 2022.