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Sammy Heung

Government subsidies will ensure Hong Kong bus operators do not pass on the cost of switching to electric vehicles (EVs) to passengers, the city’s environment minister has said.
Secretary for Environment and Ecology Tse Chin-wan made the pledge to public transport users on Wednesday, a day after unveiling the government’s road map to gradually replace diesel buses and taxis with EVs.
The government push will include offering more than HK$600 million (US$77.2 million) in subsidies to operators buying such vehicles, and will launch later this month.
Tse on Tuesday said authorities would help operators procure 600 e-buses and 3,000 e-taxis.
Each single- and double-decker bus will come with a subsidy of HK$400,000 (US$51,440) and HK$800,000 respectively, or 25 per cent of the capital cost, depending on whichever is lower.
“Although the price of electric buses has significantly dropped, they still cost over a million dollars more than diesel buses,” Tse told a radio programme on Wednesday.
“During this period, the government will cover the price difference, which is meant to offset the increased costs associated with switching to new vehicles. So the transition to electric buses will not result in passing additional costs onto passengers.”
Authorities had earlier set a goal of introducing about 700 e-buses and 3,000 e-taxis by the end of 2027.
Currently, only 1.4 per cent of the city’s 6,000 franchised buses and 0.5 per cent of the 18,000 taxis are EVs.
The government will set aside HK$470 million in subsidies for e-buses and another HK$135 million for e-taxis under the scheme. Invitations to join the initiative will be distributed to taxi owners and operators later this month.
Cab owners will each receive HK$45,000 to acquire an e-taxi, a figure that amounts to 10 to 25 per cent of the current market price. Priority will be given to owners of the city’s 3,000 oldest taxis, meaning vehicles that are more than 12 years old.

Tse said authorities had done a cost-benefit analysis and convinced the city’s bus companies that maintenance and fuel costs would be lower for EVs.
“We discussed with the bus companies and showed them that our calculations [for subsidies] were based on the principle of not passing costs onto passengers. After some analysis, they agreed,” he said.
“I believe the transition will not be the reason for bus companies to increase their fares. But of course, whether bus fares need to be raised depends on many factors other than our initiative.”
Authorities also outlined plans to increase the number of fast-charging stations for EVs, including installing facilities at petrol stations and taxi ranks.
Existing charging facilities at bus depots will also be made accessible to taxis.
Hong Kong is expected to have at least 500 more charging facilities by the end of 2027, and 3,000 more by 2030.
Tse said there would be no lack of EV chargers as there are currently 1,500 quick chargers with an output power of at least 100 kilowatts in the city.
“Petrol stations are all over Hong Kong and Kowloon, and many vehicles refuel there, so we believe these locations are convenient,” he said.
“We also plan to install charging stations at taxi stations which will only be reserved for taxis. Other vehicles are banned from entering the stations. These designated charging stations will provide incentives for taxis. I believe there will be no difficulties for taxis in charging.”
Petrol stations would also be encouraged to provide charging discounts for taxis, the minister said.
Tse said bus operators had also made plans to set up charging facilities at bus depots and terminals, adding that the government had spoken with bus companies about making those facilities available to taxis if possible.


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Hong Kong transport

Hong Kong to subsidise electric buses and taxis to stop cost being passed to public

Authorities earlier set a goal of introducing about 700 e-buses and 3,000 e-taxis by the end of 2027. Photo: Edmond So

Secretary for Environment and Ecology Tse Chin-wan has said the government’s use of subsidies for e-buses and e-taxis aims to prevent the cost being passed onto the public. Photo: Xiaomei Chen

Hong Kong targets EV transition for franchised buses, taxis in HK$600 million push

Franchised bus operators will be responsible for arranging charging facilities at their own expense under the plan. Photo: Jelly Tse

Environment minister Tse Chin-wan (third from right) says the government will take a “carrot, but no stick” by providing incentives. Photo: Dickson Lee

New Hong Kong transport chief faces first tough questions over funding rail projects

The government has been pushing ahead with a number of rail projects linked to new town developments. Photo: Jonathan Wong

Transport minister Mable Chan says the MTR Corp must bear its own risks when taking over the projects. Photo: May Tse

News

Hong Kong

Transport

Environment chief expands on government’s road map for EV transition and says franchised bus operators convinced after cost-benefit analysis


Environment chief expands on government’s road map for EV transition and says franchised bus operators convinced after cost-benefit analysis.
