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Yulon and Hon Hai Collaborate on Electric Vehicles Set to Export to the US and Oceania Amid Currency and Tariff Challenges

Yulon and Hon Hai Collaborate on Electric Vehicles Set to Export to the US and Oceania Amid Currency and Tariff Challenges

Taiwan's electric vehicles are ready to embark on their journey, with the Yulon-Hon Hai collaboration on the Model C planning to enter the U.S. market by the end of this year. Additionally, electric vehicles produced for Japan's Mitsubishi are expected to be exported to Australia and New Zealand in the third quarter of next year. This marks another attempt at export since Yulon ventured into the Chinese market under its own brand Luxgen at the end of 2010.

In 2010, Yulon's Luxgen released an image advertisement depicting the journey of Taiwan's automotive industry starting from the Miaoli Sanyi factory and going through the Port of Taipei to reach the world — a distance of just 138 kilometers that took 50 years. Now, more than 14 years later, Taiwan has overcome significant obstacles in the path of exporting its own brand vehicles for over half a century.

However, even before exporting begins, Taiwan's electric vehicles are already facing numerous challenges. Firstly, negotiations regarding U.S. tariffs remain uncertain, and Taiwan may be forced to reduce import tariffs, which could undermine protections for its automotive industry. Today, Yulon urged the government to lower the cargo tax while maintaining current tariffs to preserve the competitive edge of domestically produced cars. Furthermore, the New Taiwan Dollar has appreciated by 9.5% this year, surpassing all European and Asian currencies, which potentially reduces export competitiveness and squeezes profit margins for exporters, adding to the challenges for electric vehicles aiming to go overseas.

Once exported, Taiwanese electric vehicles will not be venturing into a blue ocean, but instead face a red ocean already disrupted by Chinese automakers.