Page 29 - TTG-Taiwan Transportation Equipment Guide (TTG) 2022-09 Edition

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Industry News

Car Price Hikes on the Horizon The Push for More EV Charging

On the other hand, the aforementioned The growth of EV ownership has forced
challenges to the automotive industry, including institutions, markets, and companies to look
rising prices for raw materials, shipping, lockdowns, at quickly expanding and improving charging
disrupted production, and material shortages, infrastructure and battery technologies. Among
suppliers have suggested to local media that car the various factors delaying consumers from
prices could see hikes in the second half of 2022. considering owning EVs, the lack of charging piles,
charging time constraints, and mileage are at the
“The pressure to raise car prices is becoming top of the list.
bigger and bigger than before,” auto industry
insiders revealed to the Economic Daily News. To address these concerns, many automakers
With tire producers hiking prices, the news is not have been directing more and more resources into
unexpected, but it could limit sales growth for their internal EV charging technology or external
Taiwan’s domestic car brands, which have relied on collaborations, including setting up fast-charging
competitive pricing strategies compared to the more piles at dealerships or working closely with charging
expensive import cars. station suppliers.

News reports indicate that due to shortages Domestic automakers — Hotai Motor and Yulon
of key components, such as semiconductors, Motor — have other ambitions, including expanding
many auto brands have chosen to release new investments into green energy, energy storage,
vehicles with fewer features. The Ukraine-Russian and charging equipment as a one-stop supplier.
conflict has cut into the materials needed to make For instance, Hotai Motor Group’s subsidiary
auto parts, such as wire harnesses, pushing Hotai Energy had been promoting its solar power
up production costs that were exacerbated by generation capacity’s expansion to 200MW and
Shanghai’s lockdown, or even threatening to shut foundations to build up green energy storage
down production at global auto brands due to the systems and EV charging stations. The subsidiary’s
shortage. Supply falling short, rising consumer focus on green energy and charging piles would
demand, and rising prices for materials, all have be beneficial for Hotai’s plans in developing EV
posed significant pressure to automotive brands as operations to build up an ecosystem.
a result.
However, the next roadblock in expanding EV
charging capacities is getting charging stations into
older residential buildings with parking lots. While
newer built residential buildings are required to