"Why 'I Won't Buy an Electric Car Because of This' - Reasons for Preferring Hybrids?"

Electric Vehicle Market Share Reaches 10% Era
Hybrid Still Preferred for Now
Charging Concerns Most Common
Infrastructure Development Needed to Meet Demand

[Asia Economy Reporter Oh Gyumin] The number of electric vehicles (EVs) in operation in South Korea has surpassed 300,000. Despite this, more consumers prefer hybrid vehicles. The reason is the insufficient charging infrastructure.

As of the end of last year, the total number of electric vehicles in operation was 389,855. In 2015, the number of registered EVs was about 5,000, marking a 7,700% increase over eight years. The market share has also approached about 10% (9.8%, according to the Korea Automobile Manufacturers Association).

The growth trend is also remarkable. According to Kaizyu Data Research Institute, 120,000 electric vehicles were newly registered last year, a 73.3% increase compared to the previous year. Among those who purchased EVs as new cars, individuals (67,728 units) accounted for about 54%. By usage, taxis showed the highest year-on-year growth rate at 215.7%. The most popular electric vehicle among consumers was the Hyundai Motor Company Ioniq 5, with 27,118 units sold.

[Image source=Yonhap News]

However, consumers still prefer hybrids over electric vehicles. According to data from the Korea Automobile Manufacturers Association, hybrid vehicle sales (including plug-in and mild hybrids) reached 274,000 units last year, more than twice the number of EVs sold. Not only in sales volume but also in preference when purchasing new cars, hybrids outpaced electric vehicles. In the ‘2023 Global Automotive Consumer Survey’ conducted by Deloitte Korea, 40% of Korean consumers said they would choose hybrids (including plug-ins) when buying a new car. Gasoline and other internal combustion engines accounted for 38%, while pure electric vehicles accounted for only 17%.

The main reason consumers hesitate to purchase electric vehicles is the lack of charging infrastructure. In Deloitte’s survey (multiple responses allowed), the biggest concerns when buying an EV were long charging times (49%), electric battery safety and technology issues (46%), and insufficient charging infrastructure (42%). To alleviate these consumer concerns, charging infrastructure must be developed to meet demand. If charging takes a long time, having charging stations in each home and apartment complex can solve the problem. If there are not enough charging stations, more should be built.

[Image provided by Korea Deloitte Group]

So, what is the current status of charging stations? There are 192,000 electric vehicle chargers nationwide, about half the number of total EVs. Despite the government’s policies to address the insufficient infrastructure, it is still inadequate. Currently, chargers must be installed at 5% of total parking spaces in new apartment complexes and about 2% of parking spaces in existing apartment complexes. Additionally, installation is mandatory for apartment complexes with 100 or more households.

The government appears to be accelerating the introduction of slow chargers within apartment complexes, often referred to as ‘home-cooked meals.’ Recently, the Ministry of Environment selected Hyundai Engineering as the support business operator for slow and fast chargers. This company plans to install 42 fast chargers and 51 slow chargers within six months at public facility parking lots in Jeonnam. They will also install 15 slow chargers in Seoul.

While subsidy support is important, policies for building appropriate infrastructure are now necessary. Installing fast chargers at major hubs such as highways and gas stations, and slow chargers in residential areas, is essential to meet the increasing demand for electric vehicles.

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