Taiwan’s generous electric bus subsidies are helping companies like Foxconn build overseas expansion strategies, particularly targeting Japan’s nascent electric transit market. The electronics giant and other Taiwanese manufacturers are positioned to capitalize on domestic incentives worth NT$5.3 million ($181,000) per vehicle—roughly half the price of an electric bus—to develop competitive products for export.
Taiwan has made substantial progress toward its 2030 goal of full bus electrification, with about one-quarter of municipal buses already converted to electric power by late 2024. The transition affects more than 10,000 buses operating on public routes nationwide, creating a substantial testing ground for local manufacturers.
Foxconn appears closest to securing partnerships in Japan, with reported negotiations to supply electric buses to Mitsubishi Fuso Truck and Bus Corporation using its Model T and Model U designs. The vehicles would be rebranded under the Mitsubishi Fuso nameplate, with both companies considering forming a joint venture.
The domestic subsidy program effectively subsidizes Taiwan’s industrial development while the government pursues environmental goals. Recent policy changes shifted from simple purchase subsidies to operational incentives based on actual mileage and passenger loads, with maximum subsidies increased to NT$1.6 million per bus over four years.
However, questions remain about the sustainability of such heavy subsidization and whether Taiwanese manufacturers can compete internationally without similar government support in target markets.
