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Yulon's Collaboration with Hon Hai to Launch Electric Vehicles Amid Currency and Tariff Challenges

Yulon's Collaboration with Hon Hai to Launch Electric Vehicles Amid Currency and Tariff Challenges

The Taiwanese electric vehicle market is poised for new opportunities as Yulon Motors collaborates with Hon Hai to launch the Model C, expected to enter the US market by the end of this year. Additionally, Yulon plans to manufacture electric vehicles for Japan's Mitsubishi, with exports anticipated to Australia and New Zealand in the third quarter of next year. This marks another attempt at foreign sales since Yulon's own brand, Luxgen, entered the Chinese market in 2010.

In 2010, Yulon Luxgen released an image advertisement that narrated the journey of Taiwan's automotive industry, starting from the Miaoli Sanyi plant and shipping out through the Port of Taipei, a short 138 kilometers that took 50 years to accomplish. Now, over 14 years later, the road to exporting domestic branded vehicles demonstrates Taiwan's enduring efforts in the auto industry.

However, challenges are already surfacing even before exports commence. Firstly, tariff negotiations with the United States remain uncertain, with Taiwan potentially forced to lower import tariffs on vehicles, undermining protection for the automotive sector. Yulon has called on the government to reduce the freight tax instead of tariffs to maintain the competitiveness of domestic vehicles. Furthermore, the New Taiwan Dollar has appreciated by 9.5% this year, diminishing export competitiveness and squeezing margins for exporters, presenting additional headwinds for the electric vehicles' overseas ambitions. Once they embark on their journey, Taiwan's electric vehicles face a competitive landscape heavily impacted by Chinese manufacturers.