The Ministry of Economic Affairs (MOEA) has voiced concerns regarding a proposal to electrify all motorcycles in Taiwan by 2030, stating that it could place a strain on the public finances. The ministry’s comments come in response to independent presidential contender Terry Gou’s suggestion that Taiwan should make efforts to replace all combustion-engine motorcycles with electric ones within the next decade.
Gou highlighted the large number of two-wheeled motor vehicles still using traditional engines during a visit to a night market in New Taipei’s Sanchong District. He proposed that the government cover the costs of electrifying motorcycles and assist in the installation of battery exchanging and charging stations to facilitate the transition.
The MOEA has released a statement in which it emphasized the need for a practical and orderly approach to motorcycle electrification that considers consumer rights, the transition of motorcycle factories and maintenance providers, and the overall industry upgrade. The total replacement of fuel motorcycles with electric ones would effectively ban the sale of traditional scooters and motorcycles, leading to significant social impact, according to the ministry.
The number of motorcycles in Taiwan currently stands at over 15 million, with less than 10 percent of them being electric. To achieve Gou’s proposal, around 2 million motorcycles would need to be replaced each year until 2030, along with the installation of approximately 20,000 energy-supplementing stations annually. Moreover, the welfare of around 21,000 motorcycle maintenance and repair service providers would need to be taken into consideration.
The MOEA highlighted the financial implications of Gou’s proposal, stating that if the costs were completely absorbed by the government, a total of NT$1.27 trillion (around NT$180 billion per year) would need to be allocated for the policy in the remaining seven years until 2030. The ministry expressed concerns that such a burden could strain the government budget and impede other planned expenditures.
As of now, the government’s approach includes subsidizing electric motorcycles and aiding the transition of fuel motorcycle maintenance and repair service providers, which helps minimize social impact and prevent potential financial strain. The MOEA expressed its commitment to engaging with stakeholders to improve energy transition policies.
The proposal to electrify all motorcycles in Taiwan by 2030 has sparked a debate on the practicality, financial implications, and social impact of such a transition. While there are clear environmental benefits to reducing the number of combustion-engine vehicles on the road, it is crucial to strike a balance between swift electrification and ensuring the government’s ability to manage the associated costs effectively.
