Market share of electric vehicles South Korea 2017-2021
Electric cars, consisting of battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV), accounted for around 0.8 percent of the South Korean automobile market as of September 2021. The Korean government aims to increase the share of electric vehicles and hydrogen vehicles in the sales volume of new vehicles to 33 percent by 2030.
Green Vehicles initiative by the government
There were more than 600 thousand green vehicles among the approximately 23.7 million automobiles registered with the authorities in Korea in 2019, an increase since 2013. Both domestic and imported car brands have seen sales of green vehicles grow over the past several years. The government’s Green Car initiative and changing public perception of environmental issues are driving the transition to environmentally friendly automobiles. Furthermore, the particulate matter coming from China and polluting Korean skies is causing greater public concern for the environment. Subsequently, the Korean government is implementing policies to stimulate the domestic market for green vehicles. The government is also financing the construction of electric charging and hydrogen refueling stations, which are in need due to the growing number of electric and hydrogen cars in Korea.
Challenges with green vehicle purchase
Unfortunately, the electric and hydrogen vehicles which are true green vehicles are quite expensive when compared to traditional automobiles. In fact, high prices were the main reason for South Korean consumers to hesitate when considering the purchase of an electric car. As such, the government is supporing to offset the costs of purchasing green vehicles with subsidies. Recently, the highest amount of one-time purchase subsidy for an electric vehicle was paid for a few models including Hyundai's Kona and Kia's Niro. The standards for subsidies have also improved significantly over time. Instead of focusing on just battery capacity, the maximum driving distance, energy efficiency, low-temperature performance, and other factors are taken into consideration. Not just passenger cars, but commercial trucks and buses, and two- and three-wheel vehicles are also receiving subsidies.
Green Vehicles initiative by the government
There were more than 600 thousand green vehicles among the approximately 23.7 million automobiles registered with the authorities in Korea in 2019, an increase since 2013. Both domestic and imported car brands have seen sales of green vehicles grow over the past several years. The government’s Green Car initiative and changing public perception of environmental issues are driving the transition to environmentally friendly automobiles. Furthermore, the particulate matter coming from China and polluting Korean skies is causing greater public concern for the environment. Subsequently, the Korean government is implementing policies to stimulate the domestic market for green vehicles. The government is also financing the construction of electric charging and hydrogen refueling stations, which are in need due to the growing number of electric and hydrogen cars in Korea.
Challenges with green vehicle purchase
Unfortunately, the electric and hydrogen vehicles which are true green vehicles are quite expensive when compared to traditional automobiles. In fact, high prices were the main reason for South Korean consumers to hesitate when considering the purchase of an electric car. As such, the government is supporing to offset the costs of purchasing green vehicles with subsidies. Recently, the highest amount of one-time purchase subsidy for an electric vehicle was paid for a few models including Hyundai's Kona and Kia's Niro. The standards for subsidies have also improved significantly over time. Instead of focusing on just battery capacity, the maximum driving distance, energy efficiency, low-temperature performance, and other factors are taken into consideration. Not just passenger cars, but commercial trucks and buses, and two- and three-wheel vehicles are also receiving subsidies.
