[Consumerwide - HueSoung Jun Reporter / Yohan Bok Reporter] EVs weren't selling well in Korea due to short months (29 days), fewer working days (Seol holiday), and a lack of national subsidies during February. However, considering the government's provision of subsidies and the industry's D/C offer, there may be a shift in EV sales. This might be an opportunity for consumers who value the environment.

Referring to Carisyoudatalab, the Ministry of Land, Transportation, and Infrastructure, and the Korea Automobile Importers and Distributors Association on March 14, the sales record of EVs in February was 2003, which is a 20.9% decrease from a month prior (2,531/▼528) and an 82.3% decrease from the same month last year (11,304). In the fuel category, the sales record of EVs was only 10% (1.8%) of diesel vehicles (10.2%), which was the least among all fuel types. In terms of age group and gender category, overall, the sales record of female customers was weaker than that of male customers. In the case of female customers, customers between their 30s and 40s were the main customers of new EVs. This is the sales record of new EVs according to each age group (female): 40s 101 units, 30s 75 units, 50s 58 units, 60s 22 units, 20s 19 units, and 70s 6 units. The sales record of female customers in their 60s (84.1% ▼) and 70s (68.4% ▼) decreased most rapidly from the same month last year. Male customers in their 70s (93.9%▼) and 60s (93.5%▼) had the most rapid decrease in EV sales compared to the same month last year, with each recording 19 units and 65 units. Male customers between 30s and 40s were the major customers, and the sales records for each age group are: 40s 361 units, 30s 225 units, 50s 169 units, 70s 19 units, and 20s 19 units. The sales record of business customers was 679 units in February, which is a 51.7% decrease from the same month last year. Ulsan's sales record in the regional category was 10 units (95.6%▼), the most rapid decrease from the same month the previous year; Seoul's sales record was 187 units (from 232 units, 19.4%), the least decrease; most other regions observed decreases of between 60% and 80%; and Incheon resulted in an increase of 3.8% by recording 301 units (from 290). According to KAMA, the sales record of EVs was 162,000 units, which was a 1.1% decrease from a year prior, as EV market is turning to mature market in Korea and concerns about safety issues and uneasy consumption environment.

In March, due to EV subsidy policy, subsidies for LFP battery EVs cut down, and requirement for full subsidies (6.5 million won) has hardened, which is under 55 million won of EVs (last year 57 million won), Evs cost between 55 million won and under 85 million won get only 50%, and over 85 million won, none. Subsidies for EVs with driving distance under 400 km for a charge cut down (differentiate according to driving distance up to 500km) and proportional benefit to manufacturer dc is set at maximum 1 million won, and subsidies to performance has decreased 1 million won less than a year prior. (subsidies based on performance: light and small EVs (3 million won), smallest EVs (2.5 million won), middle and large EVs (up to 4 million won) Due to battery safety subsidies, International Standard OBD (On Board Diagnostics) vechicles get 0.2 million won, and differential coefficient system according to battery energy density and resource circulation is recently made. The full score (1.0) is applied for facilitating direct managing AS centres in overall domestic areas, and for practicing plans, innovative technology, and facilitating charging infrastructure (installing over 200 units of standard rapid charger in 3 years: 0.4 million won, installing over 100 units: 0.2 million won) get each 1.4 million won, 0.5 million won, and 0.4 million won aiming to strengthen AS services.

Accordingly, if a future EV owner wants to receive the full subsidies (6.5 million won), he has got to fulfill all the following conditions; [performance subsidies (400(med/large) or 300(under small)) + battery safety subsidies (20)] × safety coefficiency in battery (1.0~0.6) × environmental coefficiency in battery (1.0~0.6) × AS coefficiency (1.0~0.7) + approaching target supply (140) + charge infrastructure (40) + innovative technology (50) 

Total subsidies, including government and local government subsidies, are as follows (both in maximum); Gyeongnam (Geochang) 17.9 million won (local 11.4 mn), Gyeongbuk (Ulreung) 17.5 mn won (local 11 mn), Gyeongnam (Hapcheon) 16.9 mn (local 10.4 mn), Jeonnam (Muan·Hampyeong·Boseong) 15 mn, Gyeongnam (Uiryeong) 14.5 mn, Jeonnam (Shinan·Jindo·Yeonggwng·Gangjin·Jeungheung·Gurae·Gwangyang·Damyang) 14 mn, Chungnam and Jeonbuk 13.5 mn, Jeonnam (Mokpo·Sooncheon·Naju, Gokseong·Haenam·Wando) Chungbuk 13 mn, Gyeongbuk (excl. Ulreung) 12.5 mn, Gyeongnam (excl. Geochang·Hapcheon·Uiryeong) 12.3 mn, Gwangmyeong·Pyeongtaek·Osan·Anseong·Yeoju, Gapyeong·Yangpyeong 10.5 mn (local 4 mn), Gwangju 10.2 mn (max. among metropolitan level of cities, local: 3.7 mn), Gwacheong, Yeoncheon 10 mn, Seongnam·Anyang·Gunpo·Uiwang·Yongin·Paju·Gimpo·Hwaseong·Yangju·Pocheon 9.5 mn, Ulsan 9.5 mn (local 3.25 mn), Gangwon 9.38 mn, Suwon·Bucheon·Goyang·Namyangju, Busan·Incheon·Daegu·Daejeon, Sejong 9 mn, Uijeongbu 8.9 mn, Dongducheon 8.85 mn, Hanam 8.5 mn, Seoul 8 mn (local: Daejeon·Daegu·Incheon 3 mn, Busan 2.5 mn, Sejong&Jeju 4 mn, Seoul 1.5 mn/differentiated according to price range of vehicle: under 55 mn 100%, between 55 mn and 85 mn 50%, over 85 mn none) You may not get a chance for subsidies the programme is fully lying on limited budget. Thus, if you plan for one, better be hurry.

The vehicle industry is initiating discount as subsidies are getting released. Reflecting to a RV preference suvey (EV Trend Korea 2024 Office), which evaluated that consumer perceives price more important (27%) than convenience, including driving distance after charge (25%) and installation of charging station in the area (20%), in their EV purchase, we could estimate why industry begun price discount. Overall, manufacturers have lowered entire or partial brand models between 1 mn and 2 mn won.; [Korean] Hyundai Motors (partial model) 1mn~2mn won & upgraded battary installation without raising price, Kia (partial model) 1 mn (EV Festa), KG Mobilitry 2 mn won, Tesla and Volkswagen, Polestar 1 mn~2 mn won, premium evs price over 85 mn won (Mercedes Benz, BMW) partial EV model price d/c.