As domestic electric vehicle sales rebound, the finished car industry is expecting the new model effect (an increase in sales following the release of a new model) as it introduces new models. However, the depletion of subsidies significantly affecting electric vehicle purchases as the second half of the year approaches is a variable.
According to Kaizyu Data Research Institute on 18th, the number of newly registered electric vehicles last month was 25,148, an increase of about 67% compared to the same month last year. During the same period, hybrids increased by 39.8%, while gasoline and diesel vehicles decreased by 12.5% and 24.7%, respectively.
After a brief pause, domestic electric vehicle sales are on the rise again this year. In the first half of this year (January to June), the number of newly registered electric vehicles was 93,569, an increase of 42.7% compared to the same period last year. While last year's low electric vehicle sales create a base effect that makes this year's sales appear high, the launch of new models by domestic and imported cars has also increased the options available.
The proportion of electric vehicles in new car sales is also increasing. Last month, the percentage of electric vehicles in total new car sales (150,419) reached a record high of 16.7%, which is an increase of more than 5 percentage points compared to the first half (11.1%).
The finished car industry expects sales rebounds to continue in the second half as new cars are continuously released. Hyundai Motor Company launched the new medium-sized electric sedan Ioniq 6 on the 28th of last month. This is a model that has been introduced after approximately three years since its initial launch in September 2022. The Ioniq 6 has the longest driving range (562 km) per charge among domestic electric vehicles.
Kia is preparing to launch the mid-sized electric sport utility vehicle (SUV) EV5. The EV5 is Kia's fifth dedicated electric vehicle, following the EV6, EV9, EV3, and EV4, and it will complete the supply-oriented lineup along with the EV3 and EV4. The launch of the brand's first purpose-built vehicle (PBV) PV5 is also forthcoming.
Renault Korea is set to officially launch its first pure electric SUV "Scenic E-Tech 100% Electric" this month, currently accepting pre-orders. This year, only 999 units will be sold, imported from France.
Among imported vehicles, BMW recently launched its flagship pure electric sports activity vehicle (SAV) "New iX" and plans to introduce a partial change model of the iX M70. Audi Korea launched sales of its pure electric sedan "The New A6 e-tron" the previous day, and the RS e-tron GT is on the verge of release.
However, the fact that electric vehicle subsidies, which influence purchase prices, have been over 70% depleted appears to be a variable. Seoul City and Busan City plan to secure additional budgets in the second half to provide subsidies.
The pace of expanding charging infrastructure is also cited as a persistent obstacle. The optimal number of electric vehicles per rapid charger is about 10, but currently, an average of 18 is being used in the country.