"Hey, You Too?...I Switched as Well" New and Used Cars Are Now 'EVs'?Even Surpassing Hybrids [EVs, Now It's About Infrastructure ②]

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Electric vehicles are rapidly expanding their market dominance, surpassing hybrids. According to the Korea Automobile & Mobility Association (KAMA) and the Korea Automobile Importers & Distributors Association (KAIDA), in the imported car market in March, electric vehicles accounted for 16,249 units (47.8%), outpacing hybrids at 14,585 units (42.9%). In the domestic car market, electric vehicles also led with 24,955 units (19.1%). Overall, electric vehicle sales reached 41,204 units, more than double the 15,610 units of hybrids.

This shift is the result of a combination of factors, including new model launches, strengthened price competitiveness, and rising oil prices. As the era of one million electric vehicles begins, consumer choice is swiftly moving toward electric vehicles, and the core of future market competition is shifting from vehicles themselves to charging infrastructure.

Hybrids have long been a steadily growing category as a "practical alternative among eco-friendly vehicles." The fact that electric vehicles have now surpassed hybrids signifies a decisive shift in consumer preferences. There is not just one or two factors accelerating this trend.

First, the gap in policy support is widening rapidly. With the maintenance of electric vehicle purchase subsidies, the introduction of conversion support funds, and ongoing discussions about tax credits, the level of support between electric vehicles and hybrids is increasingly diverging. This is why there are now assessments that the status of these two vehicle types, previously grouped together as eco-friendly cars, are structurally changing.

Even the government’s alternate-day driving policy, which has been applied to public institutions since April 8 to better manage energy demand, clearly shows the difference. Electric vehicles are exempt from the alternate-day driving restrictions, whereas hybrids are subject to the same limitations as conventional internal combustion engine vehicles.

The "eco-friendly" status of hybrids itself is also being called into question. Standard hybrids (HEVs) only have battery capacities of around 1 to 2 kWh, making them heavily reliant on internal combustion engines without external charging, and their actual carbon reduction effect is limited. There is now a reassessment of their classification as eco-friendly vehicles, given their structure is close to that of internal combustion engine cars. Plug-in hybrids (PHEVs) are also facing increased regulatory burdens in practice. As PHEVs can only be slow-charged, a penalty of up to 100,000 won is imposed if a charging spot is occupied for more than seven hours, resulting in reduced user convenience and a clear disadvantage compared to electric vehicles in terms of charging infrastructure usage.

In contrast, the environment for electric vehicle use is improving rapidly. Driving ranges have already reached 500 to 600 km, comparable to internal combustion engine cars, effectively overcoming the inconvenience of frequent charging. Economic advantage, policy benefits, improved user environment, and the weakening status of hybrids all combine to strengthen the case for choosing electric vehicles.

The used car market most quickly reflects consumer sentiment. While new cars take time to be delivered and are subject to manufacturers' pricing policies, used car prices are formed immediately based on supply and demand of existing inventory. As a result, external factors like rising oil prices have a faster and more direct impact on the used car market than on new cars.

The moment instability in the Middle East increased, consumers began thinking of charging stations instead of gas stations. In fact, in the two weeks following heightened tensions with Iran, electric vehicle sales at K-Car increased by 40.8% compared to the previous period, far surpassing the overall sales growth rate of 28.3%. On Encar.com, the share of electric vehicle searches jumped from 9.3% in early February to 11.0% in early March. Although clicks do not immediately translate into purchases, the shift in attention indicates a change in demand direction. Oil price volatility is being reflected in consumers' vehicle choices in real time.

In a world where electric vehicles have become mainstream, charging stations are taking over the role that gas stations once played. Consumers now expect charging to be available "anytime, anywhere," just like with smartphones. Fast and ultra-fast charging solutions are bridging this gap, and the importance of public rapid charging stations located in key urban centers and along major routes is growing quickly.

As the importance of infrastructure expansion increases, the ability to secure sites and operational references becomes a core competitive advantage. Especially now, when the pace of rapid charging infrastructure expansion lags behind the spread of electric vehicles, expanding existing key locations is a more effective strategy than developing new sites. How efficiently a company operates its already secured locations now determines profitability.

Chaevi has focused on securing prime public sites since its early days. Over 70% of its charging stations are located on public land, a differentiated structure compared to competitors, whose share is only around 20-30%. While public land requires higher quality standards, it offers lower rent and is typically leased long-term, making expansion within the same site relatively easy. This structure creates a barrier to entry that is difficult to overcome even for large corporations with significant capital.

An industry insider commented, "As the adoption of electric vehicles expands, charging demand accumulates, and ultimately that demand is concentrated in the most prepared and stable infrastructure." He added, "The real beneficiaries in the electric vehicle era are not the vehicles themselves, but the infrastructure. Among these, Chaevi is expected to benefit the most from this structure."

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