Nov. 12, 2019
Sumitomo Corporation to invest in Taiwan’s largest electric bus manufacturer
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has reached an agreement with RAC Electric Vehicles Inc. (hereinafter, “RAC”), Taiwan’s largest electric bus manufacturer, to acquire a stake in RAC.
Air pollution has become a serious problem in Taiwan, and the government there has undertaken a number of measures to promote the renewable energy industry, with the electrification of buses being one measure the government is actively pursuing. The government has announced plans to replace all 10,000 or so route buses and 5,000-odd Intercity buses with electric buses by 2030.
RAC is the only Taiwanese company with official certification from the Taiwanese government pertaining to electric buses, and it specializes in the development, manufacture and sale of electric buses. RAC-made buses boast outstanding power efficiency performance (see note) and hill-climbing performance, in addition to offering such advantages as the ability to monitor and control the operational status of batteries remotely. RAC plans to leverage these advantages to develop new services connected with electric buses.
The Sumitomo Corporation Group will be collaborating with RAC in this new business domain of electric bus manufacturing and sales to provide solutions to electric bus users in Taiwan and develop other businesses peripheral to electric buses. It will also be coordinating more closely with RAC to expand this venture to other regions where increased demand is anticipated.
The Sumitomo Corporation Group has long taken note of the broad-ranging value of electric vehicles, and will be contributing through its recent investment in an electric bus manufacturer to creating an Earth-conscious society that will help bring about an eco-friendly recycling-oriented society with a sustainable growth.
(Note) Power efficiency performance: an indicator showing how efficiently electric vehicles use electric power when operating
|Company name||:||RAC Electric Vehicles Inc.|
|Head office location||:||Taoyuan, Taiwan|
|Description of business||:||Development, production and sale of electric buses|
■ RAC-made electric buses (photos)
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Achieving Harmony with the Global Environment”, “Contributes to the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.