Hyundai and Kia Hold ‘Ideas Festival 2023’ Final Competition
Hyundai Motor Company and Kia have recently announced the successful conclusion of the ‘Ideas Festival 2023’ final competition. This grand event took place at the Namyang Technology Research Center in Hwaseong-si, Gyeonggi-do, where executives and employees pitched innovative ideas, resulting in the creation and presentation of exceptional products.
Government Considers Temporary Subsidy Increase for Electric Vehicles
The high cost of electric vehicles has long been a barrier to their widespread adoption. Observers anxiously await the government’s decision on whether to implement a temporary increase in subsidies, a move that could potentially promote greater demand for electric vehicles.
Slow but Steady Growth in Electric Vehicle Registrations
The number of registered electric vehicles continues to rise each year, albeit at a sluggish pace. According to Nuri Statistics from the Ministry of Land, Infrastructure, and Transport, there were 464,928 domestic electric vehicles registered in the first half of this year, marking a 55.7% increase compared to the same period last year (298,633 units). Despite this growth, electric vehicles account for a mere 1.8% of all registered vehicles.
In Daegu, during the second quarter of this year, the number of registered electric vehicles reached 27,263 units, showing a 37.4% increase from the same period in 2019 (19,705 units). However, electric vehicles still only comprise 1.3% of all registered vehicles in Daegu.
Pricing Dilemma: A Key Factor in Electric Vehicle Purchasing Decisions
The price of electric vehicles plays a pivotal role in determining consumers’ buying choices. A recent survey conducted by the ‘EV TREND KOREA 2023’ secretariat, organizers of an eco-friendly car exhibition, revealed that nearly half of the respondents (49%) expressed their intention to purchase an electric vehicle within the next 1 to 3 years. When asked about the most significant considerations when buying an electric vehicle, ‘vehicle price’ (24%) and ‘subsidy’ (17%) ranked second and third, respectively.
A major obstacle to increased demand lies in the reduction of subsidies allotted per electric vehicle. Over the years, government subsidies have dwindled, decreasing from a maximum of 9 million won in 2019 to 6.8 million won this year. Consequently, fewer applicants are eligible for subsidies, resulting in reduced demand.
Government’s Plan to Expand Subsidies
Recognizing the decline in demand, the government intends to devise a plan to expand subsidies for electric vehicles. Chu Kyung-ho, the Deputy Prime Minister for Economy and Finance, has expressed the government’s commitment to strengthening subsidy incentives. He emphasized the need to bolster domestic demand and revitalize the electric vehicle market, which has experienced recent stagnation.
While the extent of the subsidy increase is yet to be determined, the government aims to ensure that even those who have received subsidies in the past can benefit from the revised scheme. However, concerns about fairness may arise as retroactive payments to previous subsidy recipients may not be provided.
Specific measures to expand electric vehicle subsidies are expected to be announced later this week.
Hyundai Motor Company and Kia announced on the 24th that they are holding the ‘Ideas Festival 2023’ final competition at the Namyang Technology Research Center in Hwaseong-si, Gyeonggi-do on the 22nd, where executives and employees proposed ideas and produced and presented actual products . random news
High prices are a barrier to the spread of electric vehicles. Attention is focused on whether the temporary increase in subsidies being considered by the government will have a positive impact on expanding demand for electric vehicles.
The number of registered electric vehicles is increasing every year, but at a slow pace. According to Nuri Statistics from the Ministry of Land, Infrastructure and Transport on the 24th, the number of domestic electric vehicles in the first half of this year was 464,928, an increase of 55.7% compared to the same period last year (298,633 units ). However, electric vehicles only make up 1.8% of all registered vehicles.
In the second quarter of this year, the number of registered electric vehicles in Daegu was 27,263 units, an increase of 37.4% compared to the same period last year (19,705 units). Electric vehicles were found to account for 1.3% of all registered vehicles in Daegu.
The price of an electric vehicle is considered to be an important factor in deciding whether to buy it. According to the results of a survey conducted by the ‘EV TREND KOREA 2023’ secretariat, which organizes the eco-friendly car exhibition, 49%, almost half of the respondents, hoped to buy an electric vehicle within 1 to 3 years. When asked about the biggest consideration when buying an electric vehicle, ‘vehicle price’ (24%) and ‘subsidy’ (17%) were second and third, respectively.
The problem is that demand has fallen as the upper limit of subsidies paid per electric vehicle has been lowered. The government subsidy, which was up to 9 million won in 2019, has decreased every year and was reduced to 6.8 million won this year.
The Seoul Metropolitan Government decided to provide subsidies for 13,688 electric passenger vehicles within the year, but only 5,258 vehicles were transported. It is only 38% of the original target. Daegu’s subsidy payment rate is believed to be more than 40%. Normally, it is difficult to apply in the second half of the year as subsidies end, but the situation is different this year.
Accordingly, the government intends to come up with a plan to expand subsidies. Earlier on the 20th, Deputy Prime Minister for Economy and Finance Chu Kyung-ho said, “We are looking for ways to expand the scope of electric vehicle subsidy support and strengthen subsidy incentives,” adding, “Recently, demand for electric vehicles has been relatively low, and this will have an impact on domestic demand, which will drive demand.” “There is a need,” he said.
However, the extent of the increase in subsidy is yet to be decided. This is because the amount must be at a level that even drivers who have already received subsidies can receive. The authorities’ policy is not to provide additional payments retroactively to those who have already received the subsidy, but some note that this could lead to arguments about fairness.
Meanwhile, specific measures to expand electric vehicle subsidies are due to be announced this week.
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