​Electric vehicle subsidy 100% model? Imported electric vehicles 0% is okay

The model that can receive 100% of the electric vehicle subsidy this year is Kia’s first dedicated electric vehicle ‘EV6’. The threshold for support has been raised to the extent that most models do not receive 100% of the subsidy. However, some imported car brands are spurring the launch of new models with more than 100 million electric vehicles that cannot receive subsidies at all. We believe there is sufficient market demand regardless of subsidies.

According to the Ministry of Environment’s 2022 electric vehicle subsidy support target status on the 1st, the Kia EV6 can receive 7 million won, which is 100% of the subsidy this year. EV6 has various specifications such as standard and long-range models, two-wheeled and four-wheeled, and 19-inch and 20-inch depending on the wheel size, but it can receive 7 million won under all conditions.

EV6 is 100% supported as it meets the basic price standards for each certification specification, which is this year’s electric vehicle subsidy payment method set by the Ministry of Environment, as well as high mileage and fuel efficiency benefits. Basic price subsidy for each certified specification is based on the lowest trim level for each specification.

The light, the cheapest trim among EV6 long-range models, costs 50.2 million won for two wheels and 53.2 million won for four wheels. It meets the guidelines of the Ministry of Environment to provide 100% subsidies for electric vehicles under 55 million won. Even if the light trim price meets less than 55 million won and the GT line trim price exceeds 55 million won, 100% of the subsidy can be received. The selling price of the EV6 GT line is 56.8 million won for two wheels and 59.8 million won for four wheels.

Hyundai Motor Company’s first electric vehicle ‘IONIQ 5’ [사진=현대자동차]

Unlike the EV6, Hyundai’s ‘IONIQ 5’ can receive 7 million won for some trims. The IONIQ 5 long-range two-wheeled vehicle can benefit from 7 million won, but the four-wheeled model stayed at 6.71 million to 6.96 million won due to fuel efficiency and mileage.

Tesla ‘Model 3’ and ‘Model Y’ are priced at over 55 million won, so they can receive only 50% subsidy. The 50% subsidy standard is between 55 million won and less than 85 million won. Accordingly, the Model 3 receives 3.1 million to 3.15 million won depending on the trim, and the Model Y long range receives 3.15 million won. For Model Y performance, the subsidy benefit is 0% for more than 85 million won.

The Genesis ‘GV60’ can receive a subsidy of 3.5 million won for the standard two-wheeled 19-inch wheel model, and 3.49 million won and 3.36 million won for the standard four-wheel 19-inch and 20-inch models, respectively. The subsidy will be reduced to 3.19 million won for the performance four-wheeled 19-inch model.

BWM and Mercedes-Benz, known for their high-end brands, are only eligible for subsidies for select models. Lux, SoL+ trim of BWM ‘i3 120Ah’ can receive subsidy of 6.21 million won, and ‘iX3 M’ sports model can receive subsidy of 2.99 million won. For Mercedes-Benz, subsidy of 2.8 million to 2.99 million won was set for the ‘EQA 250’ model only.

Polestar Korea’s ‘Polstar 2’, which has recently entered the Korean market, plans to determine the amount of subsidy payment after a comprehensive evaluation including electricity cost after the Lunar New Year holiday. If it meets the standards of the Ministry of Environment, the Polestar 2 long-range single motor will receive 100% subsidy, and the dual motor model will receive only 50% subsidy.

On the other hand, some in the industry are expecting a significant change in Tesla’s sales volume as the electric vehicle subsidy payment standards change this year and new electric vehicles by each brand pour in. According to Kaizuu Data Research Institute, Tesla sold 17,828 units in the Korean market last year, up 50.8% from 11,826 units in the previous year.

However, recently, Polestar 2 sold more than 4,000 units in pre-order alone, and premium brand Audi sold 1553 units last year, Mercedes-Benz sold 1363 units, and Porsche sold 1,296 units of luxury electric vehicles.

This year, each imported car brand is spurring the launch of new cars. Mercedes-Benz plans to introduce ‘The New EQE’, an electrified model of the E-Class, and ‘AMG EQS’, a pure electric vehicle from high-performance brand AMG. BMW also plans to continue strengthening its electric vehicle lineup, such as the ‘i4’, an electric vehicle model of the 4 series next year, along with the launch of the ‘iX3’ to succeed the flagship electric vehicle ‘iX’.

Audi is preparing to introduce the electric SUV ‘Q4 e-tron’, and Volkswagen is about to introduce the electric SUV ‘ID.4’. In particular, the Q4 e-tron is expected to be released at a price of less than 60 million won, so it is expected to fall under the electric vehicle subsidy.

Polestar Korea’s first electric vehicle model ‘Polstar 2’ introduced in Korea [사진=폴스타코리아]