Yulon Motor, Launching Its First Electric Car, and Other Taiwan Companies Aim to Enter Business Expected to Take Off by 2015

Taiwan's Yulon Motor Co. and other local companies that are entering the electric car business posted strong sales gains during the second quarter this year.

Yulon, which this month started selling one of the world's first electric cars, and other listed companies entering the new industry saw second-quarter sales increase 37 percent from the same period a year ago to NT$8.9 billion (US$277 million).

Taiwan companies such as Chroma Ate Inc. and E-One Moli Energy Corp. have provided key parts such as batteries, inverters and electronic systems that have been used in the first electric cars from BMW, Mitsubishi and California electric car startup Tesla. The Taiwan companies aim to combine their expertise in IT and electronics to enter the electronic vehicle (EV) industry that's expected to take off around 2015.

"Chroma was the sole provider of the power train unit for Tesla," said Chroma Senior Manager William Chang. "Tesla is one of the indicators in this industry."

Chroma's main business is test equipment for electronics manufacturers. The company also aims to sell test equipment to electric car makers and is making inverters for electric cars, one of the key components that changes direct current into alternating current for an electric engine.

Yulon Motor in early July announced its LUXGEN7 MPV EV+, the company's first totally electric car. Yulon has been selling hybrid Luxgen sport utility vehicles (SUVs) for about a year. The Luxgen SUVs include electronic innovations such as the ability to convert kinetic energy into electricity with a regenerative braking system.

Taiwan 's production of auto electronics will be worth NT$100 billion (US$3.2 billion) in 2010 and increase to NT$300 billion by 2015, according to Taiwan 's Ministry of Economic Affairs (MOEA). The main products include telematics systems, automobile lights, light-emitting diode (LED) headlights, reverse parking systems and tire pressure monitoring systems (TPMS).

Taiwanese companies also expect growing sales in airbags, car alert systems, keyless entry, engine lock chips, navigation systems and infotainment systems.

E-One Moli supplied the lithium-ion batteries used in BMW`s MiniE electric car. Taiwan's Fukuta Elec. & Mach. Co. supplied electric motors for the Tesla Roadster, BMW`s MiniE and the Luxgen electric car.

Production of electric vehicles is predicted to soar in the next few years. Approximately 1 million EVs are expected on the road in the U.S. by 2015 with five times that many expected by 2020, according to the Rocky Mountain Institute, a U.S.-based research group.

Markets in Asia and Europe are expected to grow at a similar pace. Billions of dollars are being invested globally to develop and promote electric vehicle technology, including almost US$3 billion from the 2009 American Reinvestment and Recovery Act.

Earlier this year, Underwriters Laboratories Inc. (UL), a world leader in product safety testing and certification services, signed a letter of intent with Taiwan 's globally renowned Industrial Technology Research Institute (ITRI) to develop testing technology and specifications for power systems in electric vehicles. UL and ITRI also aim to develop safety tests for long-term aging of lithium batteries and solar power generation systems.

The LUXGEN7 MPV EV+

Chroma ATE Inc.

http://www.chromaate.com

Yulon Group

http://www.yulongroup.com.tw/english/about03.php

Molicel

http://www.molicel.com

Delta Electronics

http://www.delta.com.tw/

Please visit www.taiwantrade.org.tw or www.brandingtaiwan.org for more information.

Taiwan External Trade Development Council (TAITRA)

The Taiwan External Trade Development Council (TAITRA) was founded in 1970 to promote Taiwan 's foreign trade and competitiveness in world markets. Over the past 3 8 years, TAITRA has played a key role in the development of the Taiwan economy. TAITRA is jointly sponsored by the government and commercial associations and is viewed by all as the business gateway to Taiwan for the international business community.

# # #