Taiwan is currently grappling with a shortage of approximately 5,000 bus drivers, prompting the government to accelerate the integration of autonomous driving technology into its public transportation system.
Industry observers argue that as the government continues to champion artificial intelligence (AI), it should prioritize using such technologies to address labor shortages in public transport. Many suggest that Taiwan could look to the example of Waymo's autonomous taxi service in the US as a model.
Challenging work conditions deter new drivers
Administrative Deputy Minister of Transportation and Communications, Kuo-shian Lin, highlighted that long-distance bus routes present significant challenges for drivers. These include limited access to meals and restrooms, along with the pressure of managing passenger interactions, which have discouraged newcomers from entering the profession.
Even with starting salaries as high as NT$100,000 (US$3,379) per month, operators are struggling to recruit drivers. Lin said that proposals such as allowing foreign nationals to drive buses and extending the retirement age to 68 are currently under review to alleviate the shortage.
Democratic Progressive Party (DPP) legislator Yi-yu Tsai cited Ministry of Transportation and Communications (MOTC) data indicating a shortage of 772 highway bus drivers, 1,443 city bus drivers, and between 2,500 to 3,000 tour bus drivers, marking a total shortfall of around 5,000 positions.
Tsai attributed the crisis to the demanding work schedule, noting that bus drivers in Taiwan average 198.6 work hours and 30 hours of overtime per month.
Previous attempts by the MOTC to allow foreign students or overseas workers to serve as bus drivers or take up mid-level logistics roles were shelved due to public opposition.
AI integration seen as long-term solution
Kuomintang (KMT) legislator Yi-fong Hsieh emphasized the importance of embracing AI to resolve the workforce crisis. She cited data from Waymo, noting that their autonomous taxis require human intervention only once every 27,870km. Hsieh argued that integrating AI into Taiwan's transport system could not only address the labor shortage but also reduce accident rates through advanced driver-assistance technologies.
Deputy Minister Lin echoed these benefits, noting that smart driver-assistance systems have the potential to reduce driver fatigue and accident risks, an outcome welcomed by the MOTC.
Currently, 18 autonomous vehicle sandbox trials are underway. Notably, an autonomous employee shuttle service between TSMC's Fab 14 and Fab 18 has already logged more than 50,000km, showing promising results.
Autonomous vehicle trials underway
Two years ago, the Industrial Technology Research Institute (ITRI) completed a successful trial of a nine-seat autonomous bus capable of reaching speeds up to 50km/h. However, mass production remains dependent on regulatory revisions. Meanwhile, another large autonomous bus trial is in progress in Danhai New Town.
Regarding the potential commercialization of these autonomous buses, Minister of Economic Affairs Jyh-huei Kuo emphasized that safety remains the top priority. He added that legislative amendments will be considered if the trials yield positive outcomes.
Electric bus development gains momentum
Minister Kuo also reiterated the government's goal of fully electrifying all urban bus fleets by 2030. The Ministry of Economic Affairs (MOEA) is working closely with domestic manufacturers to develop smart electric buses and critical components locally.
Mastertrans and Tron Energy Technology Corp. are expected to begin mass production of mid-sized electric buses in the first quarter of 2026. King Lung's models of a similar size are slated for launch in the third quarter of the same year.
Foxtron Vehicle Technologies, a subsidiary of Hon Hai Technology Group (Foxconn), is building a smart electric bus factory in Kaohsiung's Ciaotou Science Park. Phase 1 of the facility is scheduled for completion by the end of 2025, with an annual capacity of 500 units. A second phase, expected by 2028, will double the capacity to 1,000 units.
Meanwhile, Mastertrans is constructing a production line for complete vehicles and EV drivetrain systems in Erlin, Changhua. The facility is expected to begin mass production in the fourth quarter of 2025, targeting an annual output of 2,000 vehicles and 10,000 EV system modules.
Boosting safety with AI-powered driver assistance
To further enhance safety standards in electric buses, Kuo said the MOEA is actively promoting the development and adoption of advanced driver-assistance systems (ADAS) through partnerships between industry, academia, and research institutes.
Notable breakthroughs include an AI-powered automatic inner-wheel braking system developed by the Institute for Information Industry, and a lane-keeping assist system (LKAS) co-developed by ITRI and Tron Energy. Both systems have already been implemented, leveraging AI and connected vehicle technologies to significantly reduce the risk of road accidents.
Article edited by Joseph Tsai
