According to the company, the system is currently undergoing road tests, and preliminary results show that the system's fuel consumption is only 33 percent to 50 percent of conventional gasoline engines.

The system is expected to enter mass production within 18 months, which will increase the company's annual revenue by NT$10 billion within three years, Delta said. Simon Chang, general manager of Delta's Industrial Automation Business Unit, said with extensive design and manufacturing experience in automobile electronics components, Delta enjoys an advantage over other players in the industry when it comes to the automobile electronics market.

Chang said his company is planning to cooperate with a Chinese automobile company in manufacturing the propulsion system, in light of the vast hybrid vehicle market on the mainland as environmental awareness continues to increase. To help fight global warming, China has set its carbon reduction target at 40 percent per unit of gross domestic product from 2005 levels by 2020.