Targeting the MZ Generation... Unexpected Outcome for This Year's Main Electric Vehicle Buyers

Ioniq 5 Buyers, 73% Are Aged 40 and Above
EV6 Also Has 65.6% Customers Aged 40 to 60

The main buyers of electric vehicles (EVs) in South Korea are not in their 20s and 30s, but rather in their 40s and 50s.

According to Kaizyu Data Research Institute on the 1st, among the cumulative sales of 5,009 Hyundai Ioniq 5 units (excluding corporate and taxi vehicles) from January to August this year, buyers in their 40s accounted for the highest proportion at 28.9% (1,452 units). Additionally, buyers aged 60 and above made up 22.5% (1,133 units), and the combined share of customers aged 40 to 60 reached 73.0% of the total.

Ioniq 6 [Photo by Hyundai Motor Company, Yonhap News]

For the Ioniq 6 model, among the 4,796 units sold during the same period, customers in their 50s accounted for the largest share at 30.5% (1,465 units). This was followed by buyers in their 60s at 25.2% (1,213 units) and those in their 40s at 24.8% (1,190 units). The purchase share of customers in their 20s was the lowest among all age groups, at 3.3% for the Ioniq 5 and 4.0% for the Ioniq 6.

Kia’s first dedicated electric vehicle, the EV6, also saw its main buyers aged 40 and above. Among the 8,143 EV6 units sold until August this year, buyers in their 40s accounted for the highest share at 27.1%, and the combined purchase share of customers aged 40 to 60 was 65.6%. Buyers in their 30s made up 26.2% (2,141 units).

Tesla, which introduced an online sales method, also had its main buyers in their 40s. During the same period, among Tesla’s total sales of 3,275 units, 42.5% (1,395 units) were purchased by customers in their 40s. This was followed by buyers in their 30s at 33.1% (1,086 units) and those in their 50s at 15.3% (504 units). Moreover, buyers in their 60s (212 units) purchased nearly three times as many Teslas as those in their 20s (78 units).

Electric vehicles were expected to be more popular among younger generations than middle-aged and older adults, due to some inconvenience in charging, the abundance of electronic equipment inside the vehicles, and their unique exterior designs. However, contrary to expectations, the reason why middle-aged and older adults aged 40 and above purchased many EVs is attributed to factors such as the relatively high price of EVs and the increase in EV charging stations.

It is also diagnosed that middle-aged and older adults, who are sensitive to oil prices, prefer EVs with lower maintenance costs despite their higher purchase prices. According to the global consulting firm Deloitte’s '2022 Automotive Consumer Trends,' the number one reason domestic consumers consider purchasing EVs is 'fuel cost savings.'

Kia EV6

Meanwhile, on the 25th of last month, the government announced that it would temporarily increase the purchase subsidy for electric passenger cars from the current maximum of 6.8 million KRW to 7.8 million KRW by the end of the year, raising it by 1 million KRW. In response, automakers immediately began offering discounts: Hyundai is discounting the Ioniq 5 and Ioniq 6 by 4 million KRW each, and the Kona EV by 2 million KRW. Kia is also reducing the price of the EV6 by 3.2 million KRW, and the Niro EV and Niro Plus by 1.2 million KRW each.

The Ministry of Environment stated, "Through the expanded support plan for electric passenger car purchase subsidies, it is expected that at least 12,000 to a maximum of 18,000 additional electric vehicles will be sold."

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