Posted on 09 Feb 2024
South Korea’s environment ministry has released new guidelines for EV purchase subsidies this year. The government will only provide subsidies for vehicles with a basic unit price lower than KRW 85 million ($64,008).
EVs purchased this year with a unit purchase price of less than KRW 55 million can receive as much as KRW 6.5 million in national subsidy. That is KRW 2m reduction in the maximum subsidy, compared to last year.
According to data released by the Korea Automobile & Mobility Association (KAMA) and the Ministry of Land, Infrastructure, Transport and Tourism on 1 February, South Korea’s new energy vehicle sales in 2023 increased by 24.3% year-on-year to 558,112 units.
Sales of NEVs in the country totalled 348,850 units in 2021, and then increased to 448,934 units in 2022, before exceeding 550,000 units for the first time last year.
“Looking at hybrid electric vehicles alone, the sales volume of local brands in the past three years has been far greater than that of imported brands. After the market share of local brands rose from 61.2% in 2021 to 67.1% in 2022, it rose again to 71.7% in 2023,” KAMA notes.
According to data from research institute Carisyou and the country’s trade ministry, Tesla only sold one car in South Korea in January.
Carisyou data also shows that after counting all car brands, the number of new EVs registered in South Korea in January also dropped by 80% compared with December. Safety and price issues, as well as a shortage of charging facilities, have dampened demand.
Source:Kallanish
