Restart of Porter and Bongo EV... Launch of Special Vehicle Model Sales

Government's Electric Cargo Truck Distribution Target Set at 25,000 Units for This Year

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor and Kia are restarting sales of electric vehicle (EV)-based small commercial vehicles with the launch of special-purpose models of the Porter and Bongo electric vehicles. This year, the outlook is bright as the government has significantly raised its eco-friendly electric truck distribution targets.

On the 9th, Kia announced that it will begin sales of special-purpose models based on the Bongo III EV, including ▲enclosed trucks (low-floor, standard, and plus types) ▲power gate ▲wing body models. Prices range from 43.24 million to 44.91 million KRW depending on the model. Prior to this, Hyundai Motor also started selling special-purpose models based on the Porter II Electric on the 4th.

Both models are equipped with a 135kW motor and a 58.8kWh battery, allowing a driving range of 177km on a single charge. Compared to existing internal combustion engine models, annual fuel costs are only about 50%, and they also benefit from discounts on public parking fees and highway tolls, making them highly economical.

The expansion of special-purpose vehicle models, which were previously only available as internal combustion engine vehicles, to electric vehicle models is due to the rapid growth of the electric small commercial vehicle market. The Porter and Bongo EVs recorded cumulative sales of 14,394 units last year (Porter 9,037 units, Bongo 5,357 units), increasing their share to 9.2% of total Porter and Bongo sales. Considering that the share was only 0.1% in the first month of Porter’s launch in December 2019, this is a remarkable growth.

Sales of Porter and Bongo EVs have been greatly supported by government and local government subsidies for zero-emission vehicles. Since electric vehicles have higher prices than existing internal combustion vehicles, sales volumes depend on the scale of subsidies from the government and local governments. The government initially set the distribution target for electric trucks at 5,500 units last year, but as most subsidies were exhausted in the first half of the year, it expanded the target to 13,000 units through an additional supplementary budget in the second half.

For example, Seoul City provided 27 million KRW (including government subsidies) for small electric trucks last year, which significantly lowered the actual purchase price to between 10 million and 20 million KRW, creating a strong incentive to buy.

With an expected increase in distribution volume this year, sales of Porter and Bongo EVs are projected to grow rapidly. Last month, the government revised the subsidy system, lowering the electric truck subsidy from 18 million KRW to 16 million KRW, while nearly doubling the total distribution target from 13,000 units last year to 25,000 units this year.

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