ITRI Spotlights Next-Generation Trends in a Rebounding Auto Market

Global economic activity is steadily rebounding as the impact of the COVID-19 pandemic wanes, setting the stage for significant shifts in the automotive industry. Despite ongoing geopolitical uncertainties, the Industrial Technology Research Institute (ITRI) projects a modest 1.3% growth in global automobile sales for 2024—totaling 93 million units—even as key markets like Japan and India face declines. Meanwhile, the electric vehicle (EV) sector is outpacing the broader market, with sales anticipated to surge by 15.7% to over 2.4 million units. This robust performance is fueled by global net-zero carbon emission targets, improved affordability, and an expanding range of EV models, all of which underscore a transformative period in mobility.

Responding to these evolving market dynamics, ITRI has gathered insights from more than 20 domestic and international industry experts to identify five key trends shaping the future of automobiles. These focus areas—"advancing motor, battery, and electronic control technologies”; “supporting the growth of new car manufacturers”; “proactively preparing for future mobility scenarios”; “enhancing the unique characteristics of electric vehicles”; and “establishing robust testing and certification environments”—offer a roadmap for understanding how innovation, investment, and policy shifts are redefining the automotive landscape. The following sections delve into each of these trends in detail, illustrating their interconnected impact on the industry's future.

Advancing Motor, Battery, and Electronic Control Technologies

Both domestic and international industries are accelerating the mass production of solid-state batteries, a breakthrough expected to reshape the EV market. Toyota, for example, has received approval from the Japanese government to begin small-scale production in 2026, with full-scale production slated for 2030. These next-generation batteries are projected to offer a range of 999 kilometers—eventually extending to 1,207 kilometers—while achieving a full charge in just 10 minutes. Initially, solid-state batteries will be introduced in Hybrid Electric Vehicles (HEVs) rather than Battery Electric Vehicles (BEVs) to keep vehicle costs manageable and accelerate commercialization.

At the same time, advancements in power systems and motors are being prioritized to enhance efficiency and reduce costs. The U.S. Department of Energy (USDOE) has outlined research and development goals for Electric Traction Motors (ETM) and Electric Traction Drive Systems (ETDS) to support this transition. Hon Hai Technology Group is also ramping up domestic battery production, with its Kaohsiung plant set to begin manufacturing square-shaped lithium iron phosphate battery cells in the fourth quarter of 2024. With a planned monthly capacity of 60,000 units, these batteries will support Taiwan’s DMIT program for intelligent electric buses. Additionally, industry collaborations with academic institutions are strengthening research in high-voltage, high-capacity batteries and recycling technologies. These efforts have increased the local supply rate of raw materials for cell manufacturing from 80% to 90%, ensuring a more sustainable and resilient supply chain.

Supporting the growth of new car manufacturers

The rise of new car manufacturers is being fueled by significant investments and strategic partnerships. A notable example is Lucid, which secured a $1.5 billion investment from Ayer Third Investment Company ahead of the 2024 launch of its Gravity SUV. Meanwhile, Hon Hai Technology Group and Saudi Arabia’s Public Investment Fund (PIF) have advanced their EV venture, Ceer, by signing a $2.2 billion contract with Hyundai Transys. The deal will supply Ceer with a 3-in-1 driving system—integrating a motor, inverter, and deceleration gear—to enhance the performance of its EV lineup.

In the autonomous mobility sector, Kiwibot, often referred to as the "campus version of Uber Eats and Lalamove" in the U.S., continues to expand. The company generates revenue through order delivery fees and advertising on its delivery robots. To further strengthen its self-driving and security-related technologies, Kiwibot acquired Taiwan’s AUTO Mobility Solutions Co., Ltd. in April 2024. The acquisition brings expertise in autonomous vehicle development, robotics, and security-related chips, reinforcing Kiwibot’s technological edge in the evolving mobility landscape.

Proactively Preparing for Future Mobility Scenarios

The future of mobility is rapidly evolving, with innovations such as Robotaxis pushing the boundaries of autonomous transportation. These next-generation vehicles are designed without a steering wheel, pedals, rear windows (for enhanced privacy), or charging plugs (relying instead on wireless charging). Additionally, they incorporate two-person seating, scissor doors, and self-cleaning technology, which was demonstrated at a recent industry showcase. Elon Musk has projected that Robotaxi operating costs will be as low as $0.20 per mile and expects mass production to begin before 2027, with a target price of under $30,000 per unit.

Meanwhile, Zeiss has developed a groundbreaking transparent image sensor that seamlessly integrates into vehicle glass, transforming windows and windshields into interactive surfaces for photography and projection. This technology not only eliminates the need for visible reversing cameras but also enables real-time facial and gesture recognition, fatigue detection, and enhanced safety features. Additionally, Zeiss’s Holography technology records and reconstructs light information, offering advanced imaging capabilities for next-generation vehicles.

To stay at the forefront of these advancements, the Intelligent Transportation Society (ITS) of Taiwan, in collaboration with the Taipei City Government, has successfully secured the right to host the ITS World Congress in 2029. The event, set to take place in Taipei in September 2029, will spotlight AI-powered intelligent transportation systems (AI+ITS), focusing on early problem detection and rapid decision-making. The congress is expected to drive technological innovation, urban mobility advancements, and tourism development, solidifying Taiwan’s role in shaping the future of smart transportation.

Enhancing the unique characteristics of electric vehicles

As the EV industry continues to evolve, manufacturers are leveraging the unique advantages of electric powertrains to develop innovative and specialized models.

Mecalac has introduced the world’s first electric construction vehicles, including excavators, bulldozers, and trucks, emphasizing environmental sustainability and significant noise reduction. While the cost of an electric version is approximately twice that of its fuel-powered counterpart, the company highlights key benefits such as high durability, energy efficiency, and lower maintenance costs, making long-term operations more cost-effective.

At CES 2024, VinFast unveiled its first electric mid-size pickup truck, the VF Wild. Designed in collaboration with Australian firm Gomotiv, the truck features a 92 cm cargo bed, which can be extended to 244 cm when the rear seats are folded down, maximizing versatility.

Meanwhile, BYD is capitalizing on the sealed structure of EV powertrains to introduce new safety features. Its Yangwang U8 model boasts emergency flotation capabilities, allowing the vehicle to remain operational in up to 1 meter of deep water for over 30 minutes. This feature proved particularly valuable during the flooding in Changsha, where the vehicle played a role in water rescue efforts, further boosting its sales performance.

Establishing robust testing and certification environments.

With governments worldwide accelerating carbon reduction policies to combat climate change, the importance of energy-efficient tires has gained increasing attention. Research indicates that key factors such as rolling resistance, wet grip, and skidding noise play a crucial role in improving fuel efficiency, reducing carbon emissions, and enhancing driving safety. As a result, developed countries have actively implemented energy efficiency management policies for tires to support sustainability goals.

In alignment with these global efforts, Taiwan’s Bureau of Standards, Metrology and Inspection, under the Ministry of Economic Affairs (MOEA), has launched a project to establish the country’s first international-grade energy-saving tire efficiency laboratory. The facility, currently under development at the Automotive Research & Testing Center (ARTC), aims to strengthen Taiwan’s tire management system while providing crucial support for domestic R&D and innovation. By enhancing testing capabilities and certification standards, the initiative seeks to boost the international competitiveness of Taiwan’s tire industry, positioning it as a key player in the global push for sustainable mobility solutions.

Starting July 7, 2024, all new cars in the European Union (EU) must be equipped with a Driver Monitoring System (DMS), with the requirement extending to all new vehicles by 2026. DMS, which includes fatigue detection and attention monitoring, has been ranked second only to Autonomous Emergency Braking (AEB) in the 2024 edition of the EU General Safety Regulation’s Advanced Driver Assistance Systems (ADAS) test scores.

The Institute for Highway Safety has conducted ratings on 14 ADAS-equipped vehicles, evaluating driver status monitoring, warning systems, emergency response protocols, driver engagement enforcement, and the activation of proven safety features.

To enhance public understanding of Taiwan’s vehicle safety initiatives, the 2024 Taiwan New Car Safety Assessment Forum was held at the GIS MOTC Convention Center. Chaired by Former Minister of Transportation and Communications, Li Meng-Yen, the event featured Dr. Michiel van Ratingen, Secretary General of Euro NCAP, who participated in discussions aimed at fostering bilateral cooperation between Taiwan and Europe in advancing automotive safety standards.

Beyond the Horizon

As the automotive industry accelerates into 2024, it stands at the forefront of a global movement toward smarter, greener, and safer transportation. With groundbreaking technologies, strategic collaborations, and proactive policies paving the way, the sector is not just adapting to change—it’s driving it. From the streets of Taipei to the highways of Europe, the innovations of today are laying the foundation for a more sustainable and connected tomorrow, promising a future where mobility meets the needs of both people and the planet.