By 2030, 100% of Rental and Lease Vehicles Will Be Converted to Electric and Hydrogen

10 Rent·Lease Companies Declare Participation in 'K-EV100'
Ministry of Environment to Expand Participation to Manufacturing, Finance, Logistics, and Transportation Next Month

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[Sejong=Asia Economy Reporter Joo Sang-don] The automobile rent and lease industry has decided to convert all owned vehicles to electric and hydrogen vehicles (zero-emission vehicles) by 2030. This is the first participation case in the government's '2030 Zero-Emission Vehicle Transition 100 (K-EV100)' campaign, which aims to expand the supply of zero-emission vehicles.

On the 25th, the Ministry of Environment announced that it publicly declared participation in K-EV100 together with 10 automobile rent and lease companies, including Lotte Rental and SK Rent-a-Car, at the Sangam Culture Depot in Seoul. K-EV100 is a project in which private companies publicly declare to convert 100% of their owned or leased vehicles to zero-emission vehicles by 2030.

The 10 rent and lease companies participating in this declaration own approximately 697,000 vehicles as of the end of last year, accounting for about 75% of all vehicles in the rent industry. This corresponds to 25.7% of the government's 2030 supply target of 3.85 million vehicles.

An official from the Ministry of Environment explained, "The rent and lease industry can spread the popularization of zero-emission vehicles by providing the public with opportunities to use zero-emission vehicles at low cost," adding, "Since most public and private institutions use leased vehicles, this sector can play a key role in creating demand for zero-emission vehicles, which is why it was chosen as the first project sector for K-EV100."

The companies that declared participation on this day plan to purchase 10,377 zero-emission vehicles this year and dispose of 6,319 internal combustion engine vehicles. They plan to increase the proportion of zero-emission vehicles to 28.3% by 2025, 71.4% by 2028, and 100% by 2030. In this case, the Ministry of Environment estimates that the current 11,622 zero-emission vehicles (1.7%) will increase to 990,770 vehicles by 2030.

A representative from one participating company said, "We joined the K-EV100 campaign as part of strengthening ESG (Environmental, Social, and Governance) management," and added, "As consumer consensus on zero-emission vehicle transition is spreading, we expect that participating in the campaign will also help improve our corporate image."

For companies participating in K-EV100, 40% of the subsidies provided when purchasing electric and hydrogen vehicles will be separately allocated, and priority will be given when applying for subsidies. Additionally, support will be provided for installing charging infrastructure at participating companies' business sites.

The Ministry of Environment plans to expand participating industries starting with rent and lease companies. Next month, it plans to promote K-EV100 participation declarations in manufacturing, finance, logistics, and transportation sectors. Kim Hyo-jung, Director of the Future Air Strategy Division at the Ministry of Environment, said, "So far, five industries and 61 companies have expressed their intention to participate, and inquiries from more companies are continuing," adding, "We will actively consider providing additional incentives to companies participating in the campaign."

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