Auto Industry: "Bold Electric Vehicle Support Needed to Achieve Greenhouse Gas Reduction"

Korea Automobile & Mobility Industry Association (KAIA) Issues Official Statement

The finished vehicle and parts industries have emphasized that bold electric vehicle support policies are necessary to boost demand in order to achieve the government's 2035 Nationally Determined Contribution (NDC) greenhouse gas reduction target.

On November 11, the Korea Automobile & Mobility Industry Association (KAIA) issued a statement saying, "The 2035 NDC target has been set without clearly resolving the issues raised by the industry regarding the rapid transition, which is causing significant concern."

The association further stressed, "Rather than focusing solely on regulatory policies, the government should pursue bold demand-creation measures to achieve the target, and develop policies that can minimize the impact on the parts industry and employment caused by the rapid industrial transition."

First, the industry pointed out the need to diversify reduction measures within the transportation sector in the process of reducing carbon emissions. They argued that relying solely on the supply of zero-emission vehicles is insufficient, and that the shortfall in reductions should be addressed by also utilizing transportation and logistics solutions.

They also insisted that emissions reduction efforts should be pursued using a variety of powertrains, including hybrid vehicles and carbon-neutral fuels such as e-fuels.

Secondly, the industry highlighted the necessity of bold electric vehicle incentive policies. They argued that the regulatory level of measures such as the zero-emission vehicle supply target system should be set within a range the industry can bear, and that a variety of incentives should be prepared.

In this context, the association proposed policy tools such as increasing per-vehicle subsidies for zero-emission vehicles, temporarily reinstating special discounts on charging fees, maintaining a 50% discount on highway tolls, and partially allowing the use of bus-only lanes.

Lastly, the association mentioned the need for transition policies to ensure stability for the parts industry and employment. They called for the introduction of tax credits for domestic zero-emission vehicle production, as well as the development of mid- and long-term support measures for the transition of the parts industry ecosystem and its workforce.

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