New EV Registrations Reach 140,000 This Year... Will the 'EV Chasm' Be Overcome?

The Korea Automobile Mobility Industry Association (KAMA) announced on September 8 that domestic electric vehicle (EV) sales last month reached 24,409 units, marking the second-highest monthly sales record following July. Thanks to robust sales from Kia, Hyundai, and Tesla, the market has seen year-on-year growth for five consecutive months.

From January to August this year, the domestic EV market increased by 48.4% compared to the same period last year, recovering its sales volume. The cumulative sales reached 142,456 units, and it is expected to surpass last year’s annual sales figure of 146,734 units within this month. The share of EVs among all newly registered vehicles rose by 3.8 percentage points, from 8.9% to 12.7%.

The increase in sales was largely driven by the launch of new models. The new Tesla Model Y, released domestically in May, sold over 28,000 units, leading demand. In addition, competitively priced mass-market and compact EVs such as the EV3, Ray EV, and Casper Electric were chosen by consumers. Large vehicles like the Ioniq 9 SUV and the Musso EV pickup truck also contributed to the sales growth.

Government policy support played a significant role as well. In February, the Ministry of Environment began providing EV subsidies earlier than the previous year, resulting in a 560% year-on-year increase in February EV sales to 13,128 units. Furthermore, an additional subsidy policy linked to manufacturer discounts helped drive down EV prices.

Domestic EVs accounted for 60.9% of the total, with sales rising 48.2% year-on-year to 86,777 units. Imported EVs also grew by 48.6% to 55,679 units, with Chinese-made EVs surging 69.4% to 42,932 units, representing 30.1% of the total.

KAMA Chairman Kang Namhoon stated, "At present, with exports to the United States restricted and local EV production inevitable, revitalizing the domestic EV market is an alternative to maintaining the competitiveness of Korean EVs. To secure price competitiveness for domestic EVs and sustain the domestic manufacturing base, it is necessary to introduce incentives such as a 'domestic production promotion tax system.'

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