'The People's Foot' Porter and Bongo Electric Vehicles, What Will Be the Subsidy Scale Next Year?

[Asia Economy Reporter Suyeon Woo] As electric vehicle models of small trucks Porter and Bongo, widely used by self-employed workers, gain attention, interest is focusing on the scale of electric cargo vehicle subsidies next year.

The recent rapid growth of the electric cargo vehicle market is attributed not only to eco-friendliness but also to price competitiveness, as subsidies make them cheaper than internal combustion engine vehicles. As of this year, the Porter and Bongo EVs have a retail price exceeding 40 million KRW, but with national subsidies (18 million KRW) and local government subsidies (9 million KRW based on Seoul), electric vehicles can be purchased at around 13 million KRW, which is cheaper than internal combustion engine Porters. Considering additional costs such as fuel and taxes, electric cargo vehicles are calculated to be much more economical.

Thanks to this, as of October this year, the cumulative domestic sales of Porter and Bongo EVs have surpassed 10,000 units. While sales of small electric trucks were only around 5,000 units in the first half of this year, the additional supplementary budget for electric cargo vehicle subsidies in the second half allowed sales to grow to 10,000 units.

Such subsidy scales have an absolute impact on the growth and speed of the electric cargo vehicle market. Next year, the government has set the national subsidy per electric cargo vehicle at 16 million KRW, 2 million KRW lower than this year. Although the per-unit subsidy decreases, the number of beneficiaries will more than double from about 11,000 units this year to 25,000 units next year. Although local government subsidy amounts have not yet been decided, it is expected that, like the national subsidy, the per-unit support will decrease while the number of beneficiaries will increase.

Moreover, with additional tax benefits in the electric vehicle sector, the actual total maintenance cost of electric vehicles is expected to decrease significantly. A government official stated, "Tax support for electric vehicles will be extended until the end of 2022, and during 2022, we will actively review whether to further extend tax support for electric and hydrogen vehicles."

Following Hyundai Motor Company's launch of the small truck Porter electric vehicle last year, Kia also introduced the Bongo electric vehicle version in February this year. These models have a driving range of 211 km per charge, which is shorter than that of general passenger electric vehicles but sufficient for the frequent short-distance use typical of small trucks. Additionally, since these vehicles are used frequently as livelihood vehicles, converting small trucks to electric vehicles is expected to multiply environmental improvement effects.

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