"COVID-19 Inevitably Impacts New Energy Vehicles... Urgent Need for Policy and Research Support"

Vice President Baechungsik of the Korean Society of Automotive Engineers is speaking at the presentation of the automotive technology and policy development roadmap hosted by the Korean Society of Automotive Engineers at Ferrum Tower, Jung-gu, Seoul on the 19th. Photo by Mun Honam munonam@

[Asia Economy Reporter Kiho Sung] It has been pointed out that it is inevitable to reorganize the new power vehicle distribution scenario due to the novel coronavirus infection (COVID-19) crisis. Experts anticipate a liquidity crisis in national finances and corporate funds invested for the distribution of new power vehicles due to COVID-19, emphasizing the need to adjust the distribution speed, expand research and development (R&D), and make evidence-based predictions for future industries to overcome this.

The Korean Society of Automotive Engineers held a presentation on the "Win-Win Strategy for Future Automotive Technology Development" and the automotive technology and policy development roadmap at Ferrum Tower in Jung-gu, Seoul on the 19th.

Kang Geon-yong, president of the Korean Society of Automotive Engineers, said in his opening remarks, "The global economic recession caused by COVID-19 is causing a crisis and unpredictable changes in the global automotive market," emphasizing that "evidence-based predictions and proactive responses are necessary through research to overcome this."

At the research presentation, Professor Minsoo Kim of Seoul National University presented on hydrogen electric vehicle technology, Professor Seongho Hwang of Sungkyunkwan University on electric vehicle technology, Professor Youngil Park of Seoul National University of Science and Technology on hybrid vehicle technology, Professor Kihyung Lee of Hanyang University on internal combustion engine vehicle technology, and Professor Kyungduk Min of Seoul National University on global policy trends and life cycle analysis (LCA), offering prospects and development direction suggestions in each field.

Chairman Chungshik Bae (Vice President of the Korean Society of Automotive Engineers, Professor at KAIST) stated, "A crisis in national financial capacity and corporate fund liquidity is expected for the distribution of new power vehicles," adding, "Appropriate scenarios, balanced policies, and long-term R&D support based on LCA of various power source technologies are urgently required."

He also forecasted that the sales volume of domestic finished car and parts manufacturers declined last year and that the decline rate would reach about 17% annually due to the economic recession continuing after 2020. Accordingly, the outlook for the automotive market amid the prolonged economic downturn is considered uncertain.

Kang Geon-yong, President of the Korean Society of Automotive Engineers, is giving a greeting at the presentation of the automotive technology and policy development roadmap hosted by the Korean Society of Automotive Engineers at Ferrum Tower, Jung-gu, Seoul on the 19th. Photo by Moon Ho-nam munonam@

In the hydrogen electric vehicle sector, it is expected that global finished car manufacturers from countries such as China and Germany recognize the necessity of mass production systems, leading to intensified global market competition. To overcome this, it was pointed out that active participation in technological cooperation and alliances with global finished car manufacturers is necessary to secure a dominant influence in the hydrogen electric vehicle market.

In the electric vehicle sector, with the planned gradual reduction or abolition of purchase subsidies and benefits, the expansion of R&D investment is urgently needed, and the establishment of policy measures to secure core original technologies for electric vehicles and the unification of control towers were emphasized. In the hybrid vehicle sector, voices called for systematic R&D support and the cultivation of research personnel to develop original systems.

Regarding internal combustion engine vehicles, it was pointed out that due to the expected fiscal deficit after COVID-19, strengthening the competitiveness of internal combustion engines is very important for the time being to secure the enormous investment funds necessary for eco-friendly vehicle development. It was further emphasized that internal combustion engines are not targets for phase-out but will continue to play a major power source role for decades, and that it is desirable to achieve balance through mutual cooperation rather than competition with eco-friendly vehicles.

This year's third-stage roadmap research presentation follows the first-stage roadmap research presentation in 2018 and the second-stage roadmap research presentation in 2019. The Korean Society of Automotive Engineers' Automotive Technology and Policy Roadmap Research Committee has been presenting research contents for each roadmap stage annually. This year's presentation was conducted on-site and live-streamed online due to the impact of COVID-19.

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