Tata Daewoo CEO: "Electric Truck Subsidies Should Be Increased for Efficient NDC Achievement"

"Mass Production of Mid-Sized Electric Trucks Ready"
"Need to Reduce the Burden on Truck Owners"

Kim Taesung, CEO of Tata Daewoo Mobility, argued that purchase subsidies for medium-sized electric trucks should be expanded to achieve the '2030 Nationally Determined Contribution (NDC)' greenhouse gas reduction target. He emphasized that since replacing diesel trucks with electric trucks has a greater effect on reducing carbon dioxide emissions compared to electric passenger vehicles, an active subsidy policy is needed.

Kim Taesung, CEO of Tata Daewoo Mobility, is speaking at the "Hysseun" launch ceremony held on the 22nd at the Gunsan factory. Tata Daewoo

At the 'HiSSEN' new vehicle launch event held at the Gunsan plant on the 22nd, CEO Kim stated, "We have completed all preparations for the mass production of the mid-sized electric truck 'GiSSEN'. However, not only are the current purchase subsidies insufficient, but the low residual value of used electric trucks is also causing truck owners to hesitate in choosing electric vehicles."

This year, the government subsidy for newly introduced medium-sized electric trucks is 40 million won, while for large trucks it is 60 million won. In the case of GiSSEN, if local government subsidies are included, buyers can receive approximately 50 million to 60 million won in total subsidies.

CEO Kim explained, "The selling price of GiSSEN will range from about 120 million to 200 million won depending on the battery type (LFP, NCA). Even with all subsidies applied, the price difference compared to a comparable diesel truck can be as much as 100 million won."

He added, "Considering that when electric buses were first introduced, a subsidy of 100 million won per unit was provided, support for electric cargo trucks remains quite insufficient."

He further explained, "A diesel truck emits as much carbon dioxide as 20 passenger cars. Therefore, providing subsidies for electric cargo trucks, rather than passenger electric cars, is more suitable for achieving the NDC goal."

Kim Taesung, CEO of Tata Daewoo Mobility (center), is speaking at the 'Hi-sen' launch ceremony held on the 22nd at the Gunsan factory. Tata Daewoo

In particular, CEO Kim pointed out that from next year, the contribution payments imposed for failing to meet electric vehicle supply targets will be a significant management burden. He said, "We will have to pay the contributions starting in 2030, but from next year, we need to start setting aside provisions. As a result, operating profit will inevitably decrease."

On this day, Tata Daewoo officially launched the new 'HIXEN' truck, targeting the medium-duty general cargo market. The model was developed to meet the needs of the medium-duty general cargo market, where maneuverability is crucial in urban areas, narrow alleys, and specialized work environments.

The vehicle is equipped with HD Hyundai Construction Equipment's 240-horsepower HCE DX05 engine and Cummins' 235-horsepower F4.5 engine, optimized for general cargo transport. The ZF 8-speed fully automatic transmission and Allison 9-speed fully automatic transmission improve fuel efficiency and effectively control engine output, delivering excellent power performance.

Kim Taesung, CEO of Tata Daewoo Mobility (center), is taking a commemorative photo with Anil Sinha, Vice President of Tata Daewoo (left), and Hwang Chunhwa, Head of the Research Institute, at the release ceremony of the 'HiSSEN' held on the 22nd at the Gunsan factory. Tata Daewoo

The truck features a structural design that accommodates various specialty applications, such as environmental vehicles, dump trucks, and refrigerated trucks. Among the medium-duty lineup, its low curb weight reduces the load burden when manufacturing specialty vehicles. Adjustments such as repositioning the rear-brake chamber, integrating the air tank with the battery, and securing space for a compressor for refrigerated trucks have enhanced workability for specialty modifications. CEO Kim explained, "With performance and maneuverability optimized for urban logistics and specialty vehicle-focused demand, this model surpasses the limitations of existing medium-duty trucks."

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