7 out of 10 Electric Vehicles Registered Last Year Were Domestic Models

[Asia Economy Sejong=Reporter Dongwoo Lee] Last year, 7 out of 10 electric vehicles registered domestically were vehicles manufactured in Korea.

According to the Ministry of Environment on the 22nd, a total of 100,338 electric vehicles were registered last year, of which 74,393 were domestically manufactured vehicles, accounting for 74.1% of the total. In particular, the domestic share of electric passenger cars last year recorded 64.5%, up 16.9% from the previous year, driven by strong sales of models such as the Ioniq 5 and EV6.

The Ministry of Environment explained that, reflecting Korea’s electric vehicle supply conditions like the cases of Japan, China, and Germany, it is diversifying and promoting the electric vehicle subsidy system.

For example, due to the climate characteristic of large temperature differences, since 2020, subsidies have been differentiated based on performance factors such as low-temperature driving range and energy efficiency. To promote domestic electric vehicle battery recycling, from this year, manufacturers and importers are required to provide information necessary for evaluating the residual value of batteries.

Additional subsidies of up to 700,000 KRW are being paid and expanded for companies participating in the low-emission vehicle supply target system. The subsidy rate is applied differently according to the price of electric vehicles, strengthening support centered on high-performance, affordable electric vehicles rather than high-priced ones.

In fact, the policy that last year provided 100% support for vehicles under 60 million KRW, 50% support for those between 60 and 90 million KRW, and no support for those over 90 million KRW has been adjusted this year to 100% support for vehicles under 55 million KRW, 50% support for those between 55 and 85 million KRW, and no support for those over 85 million KRW.

The Ministry of Environment plans to continue reforming the subsidy system to strengthen competitiveness and contribute to promoting the use of renewable energy, based on domestic electric vehicle supply conditions and overseas cases. According to this year’s electric vehicle subsidy guidelines, a total of 207,500 vehicles are planned to be supplied, and the domestic manufacturing rate is expected to increase compared to last year.

The Ministry of Environment stated, "We plan to actively consult with related ministries such as the Ministry of Trade, Industry and Energy to reflect necessary institutional improvements for activating new electric vehicle technologies and promoting the use of renewable energy in the subsidy system."

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