Promotion Strategy of Low-Speed Electric Trucks for Wholesale Markets in Taiwan

Xiluo produce market is the largest wholesale market which supplies one-third fruit and vegetable demand in Taiwan. However, each day more than 800 diesel-powered tricycles running at the market result in serious air and noise pollution. In order to solve the pollution problem, since 2010, the Environment Protection Administration (EPA) has implemented a plan to replace the diesel-powered tricycles with electric trucks. Besides, EPA also integrates efforts with local manufactures to develop appropriate electric trucks which can accommodate the requirements of usage. On July 3, 2013, EPA further announced a subsidization program, namely "the Regulations Covering Subsidies for Electric Produce Transporters at Xiluo Produce Market". According to the program, the subsidy covers the purchasing cost of electric trucks (excluding battery) and rental fees of the power batteries. At the same time, a battery management operator will be selected to provide service of maintaining battery. In addition, EPA drew up the verification specification as the vehicles' testing standard to ensure the function and safety of the electric trucks. The target is to eliminate all diesel-powered tricycles out of the Xiluo produce market before 2018 and the air quality improvement is in line with Taiwan's indoor air quality standards. Taiwan's government hopes to electrify all diesel vehicles currently in the other similar wholesale markets basing on the experience of promotion, so as to build clean trading environment for all wholesale markets in the future. This paper will discuss this vehicle electrification case study in detail and share the experience.