"South Korea Ranks 7th in Domestic Electric Vehicle Sales This Year... Semiconductor Stabilization and Battery Reliability Needed"

[Asia Economy Reporter Ki-min Lee] It has been revealed that South Korea ranked 7th in domestic electric vehicle (EV) sales up to the third quarter of this year. To further strengthen its position in the global EV market, experts pointed out the need to stabilize the supply of automotive semiconductors and secure battery reliability.

On the 14th, the Korea Automotive Technology Institute stated in a report titled "Elevated Status in the Global Automotive Market" that South Korea sold 71,000 electric vehicles up to the third quarter of this year, ranking 7th worldwide in domestic sales volume.

The reason South Korea was able to move up one rank from 8th place in annual domestic sales in 2019 and last year was attributed to the government's eco-friendly vehicle promotion policies and improved consumer awareness, which led to increases in both EV sales and the proportion of EVs among new car sales. The proportion of EVs among new cars sold domestically this year is 5.5%, ranking third after Europe and China (9.4%), and more than twice that of the United States (2.3%).

The Korea Automotive Technology Institute explained that Hyundai Motor Group, the leading Korean automaker, ranked 5th globally in EV sales this year, supported by the launch of new models such as the Hyundai Ioniq 5 and Kia EV6. Tesla maintains its global sales leadership by expanding sales of its affordable models, and excluding Chinese companies, Volkswagen and Stellantis recorded high growth rates in EV sales.

Korean battery companies are also maintaining their leading positions in the industry through aggressive investments and expansion of client bases. LG Energy Solution, the world's second largest, resumed supply immediately after reaching an agreement with General Motors (GM) on battery issues and is expanding its business with aggressive new investments such as building a new battery plant in Indonesia. SK Innovation rose six places from last year to rank 5th and is establishing a new battery plant together with Ford. Samsung SDI has secured European automakers such as Audi, BMW, Volvo, and Rolls-Royce as clients.

Not only automakers and battery companies but also domestic electronic component companies are expanding their businesses through IT affiliate integration and mergers and acquisitions (M&A) as the global future mobility electronic component market grows. LG Electronics established joint ventures with Magna in July and September, respectively, and acquired Israeli automotive cybersecurity company Cybellum.

However, a Korea Automotive Technology Institute official pointed out that to solidify South Korea’s position and lead the EV market, "it is necessary to stabilize the supply of automotive semiconductors, which was problematic this year, and secure battery reliability."

The official also advised, "Many small and medium-sized parts companies included in the internal combustion engine parts ecosystem need to expand or transition their businesses to EV-related fields for South Korea’s high price and quality competitiveness in the automotive industry to be sustained."

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