Taiwanese industrial conglomerate Tatung Company has signed a contract to supply electric power systems to local commercial vehicle manufacturer Tangeng Advanced Vehicles Company, according to local reports citing a Tatung company statement.

Tangeng is described as Taiwan's largest manufacturer of railway carriages as well as a significant player in the country's commercial vehicle sector, covering trucks and buses.

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Tatung [which once produced consumer electronics products such as TVs here in the UK – ed] unveiled its first drive motor for electric vehicles in January after it identified the electric vehicle sector as a major growth segment for its products.

Under an initial agreement it will supply 100 "high-efficiency" electric powertrain systems, including electric motors and other powertrain components, for Tangeng buses. 

A deal between Tatung, Tangeng and local bus operator SF-eBus also has been agreed to test an initial 10 battery-powered buses on a loop-line in Tunghai University in the city of Taichung in the second quarter of 2021.

Tatung and Tangeng eventually plan to set up a partnership to jointly produce and sell battery powered commercial vehicles for sale domestically and for export to markets such as India and Thailand.

The Taiwanese government also recently revealed plans to replace the 16,000 diesel fueled buses currently in use with electric buses within 10 years.

Last December, Tangeng signed an agreement with the Taiwan CPC Corporation to develop a recharging network for a battery-powered shuttle bus service operating from railway stations. CPC agreed to oversee the rollout of battery charging stations and also to supply lithium titanate for the production of the EV batteries.