Eco-friendly Car Performance Also Depends on 'Sincha'

Hybrid Cars Following New Models Like Kona and Sorento
40,222 Units Sold Until May This Year... 44.8% Surge Compared to Last Year
Electric Cars Without New Passenger Models, Sales Down 4% in Same Period

[Asia Economy Reporter Kim Ji-hee] In the domestic eco-friendly car market, electric vehicles and hybrid vehicles experienced contrasting fortunes. While sales of hybrid models, which included many new cars such as Kona and Sorento, increased by nearly 50% compared to last year, electric vehicle sales slightly declined.

According to industry sources on the 12th, domestic hybrid vehicle sales from January to May this year recorded 40,222 units. This represents a sharp increase of 44.8% compared to the same period last year. Considering that domestic sales of five major automakers decreased by 1% during this period, this is a very significant growth rate.

The strong sales of hybrids are largely attributed to the new car effect. The addition of the Kona Hybrid in the second half of last year and the Sorento Hybrid earlier this year accounted for more than half of the increased sales. The Kia K series, which introduced new models at the end of last year, also saw hybrid model sales roughly double.

On the other hand, domestic sales of electric vehicles, which have been export champions, slowed down. Up to May this year, the five domestic automakers sold 12,106 electric vehicles, a 4.1% decrease compared to the same period last year. Excluding trucks such as the Porter (3,202 units) and Bongo (1,256 units), sales of passenger electric vehicle models nearly dropped by 40%.

The demand appears to have been suppressed as various incentives that had driven the growth of the electric vehicle market were reduced this year. Electric vehicle subsidies were cut starting this year, and from next month, charging fee discounts will also be gradually reduced, leading to a contraction in demand. Additionally, the product lineup is concentrated in the small car segment, which is cited as another factor hindering market expansion. Currently, only seven domestic passenger electric vehicle models are on the market: Ioniq, Kona, Niro, Soul, Bolt, SM3 Z.E., and Twizy. Most of these are older models with little expectation of a new car effect and are concentrated in specific segments, making it insufficient to attract new demand.

However, the imported car market shows the opposite trend. Since the beginning of this year, hybrid car sales have decreased by 21.4% compared to the same period last year, while electric vehicle sales have more than doubled. The success of the imported eco-friendly car market also hinges on 'new cars.' In the case of electric vehicles, options are rapidly expanding, especially among German brands that lead the imported car market. Recently, Tesla has entered the domestic market in earnest, shaking up the imported electric vehicle market.

In contrast, the imported hybrid car market, traditionally dominated by Japanese brands, was hit hard by the boycott movement that swept through the second half of last year. The imported hybrid model market had experienced steep growth annually, reaching a market size of 27,000 units in 2018. However, due to the impact of the boycott against Japanese products, sales declined for the first time last year compared to the previous year. Given the unfavorable social atmosphere, Japanese brands were also passive in launching new models or marketing. Nevertheless, the steady demand shifted to domestic cars, acting as a catalyst to stimulate growth in the domestic hybrid vehicle market.

Including both domestic and imported cars, the domestic hybrid market surpassed a total sales volume of 50,000 units within five months this year. If the current trend continues, the hybrid market is highly likely to break the '100,000 units annually' record this year despite the adverse effects of the COVID-19 pandemic.

An industry official said, "Demand for electric vehicles is still limited to some consumers who are less resistant to new technologies, but hybrid vehicles have much greater market expansion potential due to their higher accessibility compared to electric vehicles." He added, "In line with the global market's shift toward eco-friendly vehicles, automakers are expanding hybrid models up to the mid-to-large car segments, which is also driving the sales growth."

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