[Consumerwide - HueSoung Jun Reporter / Yohan Bok Reporter] Vehicle experts in Korea perceive that practical roadmaps and strategies are indispensable for the vitalization of the SDV industry, ultimately aiming to strengthen the future competitiveness of the Korean vehicle industry. During a panel discussion on the 21st Korea Automobile Day, Lee Hanggu, the director of the Institute of Automotive Convergence Technology; Yang Jinsu, the director of HMG Strategy’s Research Team; Lee Jaegwan, the director of the Korea Automotive Technology Institute; and Hong Sungsu, a professor at Seoul University, spoke about ways to improve the mobility industry in the future.

This report is based on the speech of Lee Hanggu, the director of the Institute of Automotive Convergence Technology, regarding future demand and assignment.

Lee, the director of the Institute of Automotive Convergence Technology, predicted that the sales record of hv won't exceed the sales record of ev. Lee said, "For a variety of reasons, such as expensive EV costs, slow distribution of charging stations, and slow charging speeds, EV demands are decreasing. Accordingly, more people are consuming HVs, and some see that the EV era is for the very future. This is like missing the forest by focusing on the trees concerning the climate crisis. The US and EU governments are easing environmental regulations, yet I see that EV consumption is constantly increasing. However, still, US vehicle manufacturers are required to increase EVs by 56% in 2032, resulting in new vehicle sales, and the EU is maintaining its HV sales termination policy by 2035, though they have eased Euro 7 regulation. Due to Chinese consumption, world EV consumption will record approximately 17 million units this year, which is a 19% increase from a year prior. Besides, HV sales have stopped at one-third of EVs in 2023, though the increase in HV demand has exceeded that of EVs during the same year, which will be continued unless the EU eases the HV regulations or China redefines HVs in the new energy vehicle category. Due to the low sales trend of EVs, Chinese businesses are leading the EV price competition, and the world's leading vehicle manufacturers are going to release affordable EVs accordingly. I perceive that the EV demand has approached the stage of exceeding the same demand for diesel; thus, they won't reach another two- to three-digit increase rate, yet it will continually increase after one to two years of adjustment period. The vehicle industry has been maintaining highs and lows for every decade in the past. And, they will go through a similar pattern as combustion engine vehicles did as EVs are commercialised in full scale in the market."

Lee said that securing experts in electric car components in the industry is the primary assignment. "I am concerned that the auto part manufacturers do not move forward soon enough because of the high consumption of HVs currently in Korea. Even the government estimates that 20% of former car parts businesses are moving forward to future industries; however, the whole industry is lacking specialists in the electrical parts sector, which is resulting in severe competition between companies to secure experts offering high wages. Surely, small businesses in provinces other than the capital are failing to employ them, as labs in the capital area will be the first choice for the young workers. Thus, labs are trying to move into capital regions."

Lee said that we've got to get ready for the commercialization of SDV until 2026. "Even the large car parts businesses are having a hard time employing SW-expertized workers who meet SDV commercialization. The expertized workers are primarily choosing the labs in capital areas, which is uneasy to resolve. Besides, I am worried the deceleration of supply chains might slow down the commercialization of SDV-based EVs."

Lee said that constant support in terms of providing information that is needed and political advice, along with an increase in EV purchase subsidies, are essential. "I perceive that increasing EV purchase subsidies, which the German and Chinese governments are currently taking, are necessary as EV sales have been decreasing in Korea since last year. Permitting EVs to share the public bus lanes was already proposed many years ago, but it's been refused due to the opposition of transportation-related parties. Focusing on overcoming the climate crisis in transportation policy, the experts and mass media need to release public data accordingly, along with analysis on technologies and economies (including the lower part of the structure)." Closing the discussion, Lee emphasised, "The vehicle industry is facing an era where everyone is talking about their own opinions in the midst of fast-paced paradigm change. A variety of research based on fact and evidence is indispensable for sustainable growth."