[2020 Green Mobility Award] "China Took More Than 40% of Electric Bus Subsidies"

Asia Economy 10th Green Mobility Awards
Breakfast Lecture by Jeong Manki, President of Korea Automobile Manufacturers Association
"Urgent Need to Revise Eco-Friendly Bus Subsidies"

[Asia Economy Reporters Kim Hyewon and Woo Suyeon] Concerns have been raised that if the government does not change its eco-friendly bus subsidy policy, it will effectively open the door for Chinese-made electric buses to ride free on our taxpayers' money.

Jung Manki, Chairman of the Korea Automobile Manufacturers Association (KAMA), stated at a breakfast lecture hosted by Asia Economy on the 29th at the Westin Chosun Hotel in Sogong-dong, Seoul, during the '2020 Korea Green Mobility Awards,' "More than 40% of the government's electric bus subsidies in 2018 were provided to imported Chinese buses." ▶Related articles on pages 7, 20, and 21

Chairman Jung said, "While the subsidy calculation system for eco-friendly passenger cars was relatively rationally restructured this year to focus on fuel efficiency and driving range, the subsidy calculation system for eco-friendly buses such as electric and hydrogen buses still has problems," adding, "At the very least, the subsidy difference between electric vehicles and hydrogen electric vehicles (about 2.2 times) should also be reflected in the subsidies for electric buses and hydrogen buses." Currently, the government subsidies for electric buses and hydrogen buses are 300 million KRW and 400 million KRW respectively, showing about a 33% difference.

Jeong Manki, Chairman of the Korea Automobile Manufacturers Association, is giving a lecture on the topic "Global Eco-friendly Vehicle Market Trends and Our Choices" at the "2020 Korea Green Mobility Awards" hosted by Asia Economy on the 29th at the Chosun Hotel in Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@

If low-priced Chinese electric buses priced in the low 300 million KRW range receive subsidies, their selling price would drop by 10 to 20 million KRW, making them the preferred choice for local governments. On the other hand, hydrogen buses priced in the 600 million KRW range would still incur over 200 million KRW in additional costs even after subsidies, resulting in a lack of price competitiveness.

Chairman Jung also argued, "The reason local governments purchase Chinese electric buses is not only because of their low price but also due to the lack of hydrogen bus charging infrastructure. Therefore, even if it means reallocating this year's budget, we must expedite the construction of hydrogen bus charging stations, which have superior eco-friendliness."

Meanwhile, Jeong Seung-il, Vice Minister of the Ministry of Trade, Industry and Energy, who attended the event, emphasized in his congratulatory speech, "The government will firmly establish not only hydrogen electric vehicle sales but also core infrastructure such as charging stations," adding, "The goal is to ensure that anyone can reach a hydrogen charging station within 20 minutes from anywhere."

This content was produced with the assistance of AI translation services.