The government has set a target of 207,500 electric and hydrogen vehicles this year and lowered the upper limit of 100% subsidy for passenger cars to 55 million won. Subsidies are not provided for vehicles over 85 million won.
The Ministry of Trade, Industry and Energy and the Ministry of Environment and the Ministry of Strategy and Finance announced on the 19th that they would make an administrative notice of the ‘2022 Electric Vehicle Subsidy Business Handling Guidelines Reorganization Plan’ and collect stakeholder opinions by the 25th.
The Ministry of Trade, Industry and Energy said that the reform plan was prepared through discussions between relevant ministries and stakeholders of manufacturers and importers in consideration of the increased need for accelerating the conversion of electric and hydrogen vehicles and the improvement of the air environment improvement effect.
The supply volume by vehicle type is significantly increased compared to last year. The number of passenger cars will be increased from 75,000 to 164,500, trucks from 25,000 to 41,000, and vans from 1,000 to 2,000.
It also induces price cuts to accelerate the transition to electric and hydrogen vehicles. The upper limit of 100% subsidy for entry-level models will be lowered to less than 55 million won, and 50% of subsidies will be provided for between 55 million won and 85 million won. No more than 8.5 million won.
The maximum subsidy amount was reduced from 8 million won to 7 million won for passenger cars, from 16 million won to 14 million won for small trucks, and from 80 million won to 70 million won for large vans.
If the entry-level price of less than 55 million won is lower than last year, additional subsidies will be provided. The subsidy is 30% of the reduced amount, up to a maximum of 500,000 won.
Subsidies will be added when a target company of the low-emission vehicle supply target system achieves the electric/hydrogen vehicle conversion target. Last year, 200,000 won was provided to target companies and 300,000 won was added if the target was achieved. .
Support for accelerating the conversion of commercial vehicles to electric and hydrogen vehicles, which is highly effective in improving the atmospheric environment, will also be strengthened.
An additional subsidy of KRW 2 million for electric taxis will be maintained, and 10% of the total amount of passenger vehicles will be allocated to taxis. 20% of the supply of trucks will be allocated to corporations and institutions to support the mass conversion of commercial trucks such as delivery trucks to electric and hydrogen vehicles.
If a child’s school car is purchased as an electric van, an additional subsidy of 5 million won is provided.
It also focuses on supporting high-performance, high-efficiency electric and hydrogen vehicles.
It leads to improvement in winter performance by strengthening the additional subsidy support standards for models with superior mileage compared to room temperature. Electric trucks also have different subsidies according to their performance (fuel efficiency and mileage).
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In order to support the activation of battery recycling for electric vehicle manufacturers and importers, information necessary for evaluating the residual value of batteries is provided. In addition, by extending the mandatory operation period, such as for export, from two years to five years, the export of subsidized electric vehicles to foreign countries will be minimized.
An official from the Ministry of Trade, Industry and Energy said, “Based on the opinions collected, we plan to confirm the reform plan to accelerate the supply of electric and hydrogen vehicles and to lead the era of popularizing electric vehicles by achieving the ‘National Greenhouse Gas Reduction Target (NDC)’ in the transportation sector.”
Meanwhile, more detailed information about the reform plan can be found on the Emission-Free Vehicle Integration website.
