Electric vehicles have been developing rapidly from the original hybrids, to parallel/serial and plug-in hybrids through the optimization of power drive designs. Since then, the industry has been able to develop all-electric models as the electronic and drive control technologies matured. All-electric vehicles are ready to change the motor vehicle industry.
Large-size car manufacturers reluctant to develop electric vehicles while new firms eager to enter the market
It is foreseeable that the entire motor vehicle trend moves toward all-electric drives as the industry develops. However, most traditional automakers are reluctant to make the switch as they have invested a great amount of resources into fuel engine technologies. Meanwhile, newcomers, firms that do not have the burden of dealing with old technologies and investments, have dove straight into all-electric vehicles and have been able to focus fully on the latest all-electric drive and battery technologies. The most prominent example is US-based Tesla. The success of Tesla has encouraged many IT-related firms to pay more attention to the electric vehicle industry.
The electric vehicle market trend has been closely linked with Tesla. In the fourth quarter of 2014, Tesla introduced the four-wheel drive Model S which once again pushed the limits of electric vehicles. Tesla Model S P85D with its four-wheel drive function can go from 0-96km/h in only 3.2 seconds. While introducing the Model S, Tesla also announced that the firm will introduce the Model D, which has an autopilot function that can handle up to 90% of the driving for the driver. The autopilot program of the Model D will be wirelessly updated through Tesla's own technology to support all models that are compatible.
High-end electric vehicles focus on performance and autopilot to break through fuel engine vehicle limits
Tesla's Model S P85D, Model S 60D, and Model S 85D have exceeded the current performance limits of mass produced electric vehicles. The highest endurance of these models can reach 475km. Although the price of these vehicles continues to be high, their endurance can satisfy consumer needs. Interestingly, Tesla's Model S uses front and rear high-performance motors to build the output structure of its four-wheel drive. Using the front/rear drives simultaneously, the vehicle can go from 0-96km/h in only 3.2 seconds. Its total output power reaches 515KW, peak torque at 930Nm, with a top speed reaching 249km/h.
The Model S P85D has a partial autopilot function which works with radar set in the front of the vehicle and sensors to signal, detect road lines and traffic lights. The vehicle has 360-degree sonar to detect objects around the car such as pedestrians. The autopilot function can detect signals, pedestrians, and moving targets, and achieve cruise control, automatic breaking, and automatic parking.
Google has resources and is eager to invest in the development of autopilot vehicles
Tesla is not the only firm to focus on autopilot functions, Google also has been investing significant resources to research and develop self-driving vehicles. Google has key technologies such as its Google Maps service as well as research and resources related to AI, interactive voice response, and cloud computing, that can form the foundation of an autopilot ecosystem and the basis of self-driving vehicles.
The stability and practicability of Google's version of autopilot technology, which includes AI, still has room to grow as related regulations have yet to mature. Also due to the high cost of technology integration, commercializing such a product will still be difficult. On the other hand, Tesla's version of autopilot which tackles cruise control and semi self-driving technology has a greater chance of being put into mass production.
Audi sets Tesla Model S as target
To compete with Tesla, other large-size automakers have been eager to enter the all-electric vehicle market. Firms such as Audi plan to introduce an all-electric model with performance, endurance, and specifications that are comparable to the Tesla Model S in 2017. Audi aims to reach the target of 450km endurance achieved by the Model S while surpassing Tesla in performance. Currently Audi is likely to regroup and refine its Audi R8 e-tron electric vehicle project and technologies to create a product that is comparable to Tesla's. Audi still has room to grow in its next generation of electric vehicle performance and energy-saving functions.
China aggressively develops new energy source vehicles; plug-in hybrids especially popular
Other than US- and Europe-based firms that have been investing in R&D and mass producing electric vehicles, China has also been developing in this area. China's motor vehicle market continues to move toward using new energy sources. Plug-in hybrid vehicles have been expanding in market share in China due to practicality and performance. China-based firms such as BYD, SAIC Motor, and GAIG have each introduced plug-in hybrids. China-based firms are choosing plug-in hybrids to enter the energy-saving motor vehicle market because all-electric vehicles face problems such as the lack of charging stations and charging piles. This greatly affects the commercialization of electric vehicles.
Plug-in hybrids are different because owners can charge the batteries at home and use the electric engine for day to day commutes, but if the owner wishes to travel farther, they can switch to the fuel engine. Although the system is more complicated, plug-in hybrids bring more flexibility compared to all-electric vehicles. In addition, the government has been giving subsidies and benefits for electric vehicles, and plug-in hybrids are able to qualify for such subsidies and benefits in some regions. For example, in cities with heavy traffic, the government only allows certain license plates to be on the road at certain times. Under this policy, plug-in hybrids enjoy the same privileges as all-electric vehicles, acting as one incentive for consumers to purchase such vehicles.
Plug-in hybrids have lower costs while able to enjoy government subsidies and benefits
As for benefits in production, plug-in hybrids use fewer batteries hence the price of the vehicle is more consumer-friendly. While a comprehensive ecosystem of charging stations is yet to be established in a region, plug-in hybrids still allow users to be flexible while saving energy. Also, drivers can enjoy the privileges of electric vehicles while paying a relatively lower price. Plug-in hybrid vehicles enjoyed a booming year in 2014 in China. The market expects more plug-in hybrids to enter the China market in 2015.
To commercialize all-electric vehicles, the current environment still requires lots of investment. Furthermore, government policies should accommodate and promote changes, such as by limiting the number of vehicles on the road, tax breaks, subsidies and benefits. Also governments should fine and control fuel-powered vehicles that cause pollution. With the necessary infrastructure and government policies, the market will push vehicles that cause pollution out of the market and turn to hybrids or all-electric vehicles.
In moving toward all-electric vehicles the biggest challenge is the lack of, and high cost of building public charging stations and charging piles. When manufacturers and the government begin to actively set up Taiwan electric vehicle industry trends and challenges
Taiwan's electric vehicle development can be divided into three aspects: policy, technology, and market. On policy, Taiwan has been up to date with the world on being environmentally friendly by aggressively managing issues such as saving energy, carbon emissions caused by vehicles, and the pollution problem created by old vehicles through regulations. However, compared with Europe, the US, or China, Taiwan has yet to aggressively pursue policies that provide subsidies for environmentally friendly vehicles, hence local motor vehicle manufacturers have been conservative about developing electric vehicles. The lack of subsidies means the market is limited because consumers do not have enough incentives to switch to electric vehicles. Local motor vehicle manufacturers have only been investing in small-size electric vehicles for tourists and corporations and not into commercial vehicles which can greatly help the environment to achieve lower car emissions.
In contrast with China, Europe, and the US where consumers face attractive prices for electric vehicles due to a wide variety of options and government subsidies, Taiwan's consumers face limited means and incentives to purchase electric vehicles.
Although subsidies and polices have been conservative, Taiwan has excellent ICT technology and resources for developing electric vehicles. The development of electric vehicles has seen improvements on the back of battery technology development which has driven improvements in overall endurance. However, in addition to battery and engine technologies, another key technology for electric vehicles is ICT integration.
Compared to Europe, the US, and China, Taiwan's ICT filed has world-class R&D and manufacturing. Taiwan also has mature vehicle-related electronics such as products for vehicle safety, driving support, vehicle communication, multi-media, and electric ICs. These products allow electric vehicles to become smart, safe, and comfortable for the driver and passengers. Although Taiwan has related technologies and mass production capabilities, due to the limit of its market, Taiwan should use its competitive advantage in manufacturing vehicle-related key components to build a knowledge platform upon which the local industry can continue to develop.
Currently, Taiwan has firms such as Kymco, China Motor Corporation (CMC), and E-Motorcycle that have been eager to invest in and develop electric motorcycles. Firms such as Luxgen, CMC, Pihsiang, and RAC have been developing various types of electric vehicles. Many Taiwan-based firms have been achieving international levels of R&D in all-electric vehicle key components. Taiwan firms have supplied key components or provided customized component research and design to international electric vehicle firms. Taiwan-based firms such as Fukuta Motors, Gongin Precision Industrial, Chroma, and Molicel have each received component orders from international electric vehicle firms such as Tesla and BMW supplying products such as electric vehicle motors, battery modules, and power control modules. The potential for growth is enormous.
