economy
Entered 2024.05.10 07:00 Modified 2024.05.10 08:10
Break through the broken electric vehicle market with low cost electric vehicles
Kia EV3 waiting for sortie
Tesla is launching a low-cost model in 2025
Photo = AFP The pace of cost-effectiveness-driven Chinese electric vehicles is fierce. Despite the prediction that the electric vehicle market has entered a ‘chasm’ (temporary slowdown in demand), the number of registered electric vehicles worldwide in the first quarter of this year increased by around 20% compared to the year previous Among these, the market share of Chinese companies is about 35%, which means that more than one in three newly registered electric vehicles are Chinese electric vehicles. There is an analysis that the company is leading the growth trend by targeting the market with light and low price electric vehicles.
According to SNE Research, an energy market research company, on the 10th, the total number of electric vehicles registered around the world in the first quarter (January to March) was around 3,139,000, an increase of 20.4% from the previous year. Among these, supplies to China totaled 1.392 million units, accounting for 56.2% of the total. Unlike last year, when sales fell due to the subsidy suspension issue, the popularity of electric vehicles is gaining momentum due to increased sales of light duty electric vehicles with price competitiveness and expanding consumer choice through the launch of sub-brands. Global electric vehicle deliveries in the first quarter of this year. Photo = SNE Research From the company, BYD was in first place with a growth rate of 9.9%. The market share is 18.5%. Growth was driven by strong sales of Song, Gwylan and Dolphin. Tesla, in 2nd place, recorded a negative growth of 2.4% compared to the same period last year due to a decrease in the sales of other companies except for its flagship model, the Model Y. The closure of factories and delays in supplying customers due to logistics disruptions from the Red Sea are identified as major factors. The third place is the geography group. The growth rate compared to the same period last year was 59.1%. Among the top 10 brands in annual cumulative global electric vehicle deliveries, it is the only one to record a growth rate of more than 50%. Global sales of the Panda compact electric car and Volvo’s new EX30 electric car are expanding. Active market targeting, including the launch of sub-brands, led to good performance.
Chinese companies are supplying low-cost electric vehicles to the global market, driving demand in a stagnant market. This is in contrast to the main electric vehicle industries which try to maintain market share through price reductions. The general view is that new competition will be created in the Chinese electric vehicle market as more start-ups focused on cost-effectiveness enter the market. The global car industry is working hard to launch low-end electric vehicles to keep track of Chinese companies expanding into the WORLD’s low-priced ‘Explorer No.1’ market. Photo = REUTERS Yonhap News First, the company appears to be launching an entry-level model in China, which maintains its position as the world’s largest electric vehicle market. Kia launched the EV5, which is about 20 million cheaper than the Tesla Model Y (249,900 yuan). The local selling price of the EV5 in China starts at 149,800 yuan (about 28.3 million won). Tesla has decided to accelerate the launch of its low-cost electric vehicle, which was supposed to be produced in the second half of 2025. This is interpreted as an attempt to overcome sluggish demand and poor performance for electric vehicles. Elon Musk said in a conference call after announcing earnings in April, “We expect the new car to be launched in early 2025, if not at the end of this year.” Kia’s first entry-level electric vehicle, the EV3, was partially unveiled on the 7th. Source = KIA Even in the domestic market where growth has slowed, entry-level electric vehicles are about to be launched. The one attracting the most attention is the Kia EV3. It is the third electric vehicle in the domestic market and the first entry-level electric vehicle, following the mid-size electric sedan EV6 and the large electric sport utility vehicle (SUV) EV9. It is known to be smaller than Kia’s compact Seltos SUV (4,390 mm long, 1,800 mm wide, 1,600 mm high) and has an NCM battery. The price is in the range of 40 million won, but including government subsidies, it seems that it can be bought for about 30 million won. Specific product information will be released via a world premiere online video on the 23rd The launch of EV3 and EV5EV3, unveiled at Kia EV Day, is expected in the second half of the year. Previously, in a business performance conference call last month, Kia said, “EV3 will start mass production in Korea in June. We plan to reveal the price before mass production,” and added, “There are plans for -contracts.” Following the EV3, the electric sedan EV4 and EV5, first introduced in China, are expected to be released in Korea as well. The industry expects that successive launches of low-end electric vehicles will ease some of the price burden on customers and revive the market. This is because a lack of charging infrastructure and high prices are cited as reasons for the slow spread of electric vehicles.
SNE Research said, “Consumers are hesitant to buy due to issues such as insufficient charging infrastructure and high EV prices compared to the fast-growing EV market, so a slowdown in demand for EVs is expected for now. However, this will happen gradually and the trend of electrification will continue in the medium to long term.” “It looks like it’s going to happen,” he said.
Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com
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