In the domestic commercial vehicle market, liquefied petroleum gas (LPG) and diesel are becoming the dominant fuels, while Hyundai Motor Group is expected to showcase electric commercial vehicles one after another. Kia plans to unveil the PV7 and PV9 following the recently launched PV5, and Hyundai Motor intends to present the Staria electric vehicle.
Recently, Kia launched its first purpose-built vehicle (PBV) PV5 in Korea. The vehicle is expected to be released in a total of 14 models according to its purpose, with 7 models currently available, including passenger and cargo variants. Contracts have also been signed with Kakao Mobility (vehicle calling) and Korea Post (delivery and logistics) for vehicle supply.
Currently, the domestic electric commercial vehicle market is mainly occupied by light electric trucks such as the Porter and Bongo. While light electric trucks gained sudden popularity at their launch, sales have slowed down due to issues such as the short driving range compared to LPG and diesel trucks and insufficient charging infrastructure.
The demand for electric commercial vehicles in Korea still lags far behind that of LPG or diesel. According to the Korea Automobile & Mobility Association (KAMA), last year, 20,535 electric commercial vehicles were sold in Korea, a decrease of 53.2% compared to the previous year. Diesel sales decreased by 71.6% to 46,674 units, while LPG sales increased by 1002.3% to 95,477 units. Diesel sales were impacted by the discontinuation of 1-ton (t) trucks like the Porter and Bongo.
Kia has recently established the 'Hwaseong EVO Plant', an electric vehicle factory exclusively for PBVs in Hwaseong, Gyeonggi Province, and has started mass-producing the PV5, with an annual production capacity of about 150,000 units. They plan to launch larger models, the PV7 and PV9, in 2027 and 2029, respectively, and are also preparing a compact model, the PV1, optimized for short-distance logistics transportation.
Earlier, Hyundai Motor entered the PBV market last year by launching the electric commercial vehicle ST1. The ST1 is characterized by its chassis-cab model, which can change its form according to the intended use. The chassis-cab is a vehicle that consists only of the chassis and cab, and the rear cargo area can be fitted according to the desired purpose. In February next year, they will begin mass production of the Staria electric vehicle.
There are projections that the adoption of electric commercial vehicles will steadily increase in the medium to long term. As the need for electrification of commercial vehicles grows due to environmental regulations such as carbon reduction, the economic feasibility derived from government subsidies and tax benefits is becoming more prominent.
According to the International Energy Agency (IEA), last year, 660,000 electric commercial vehicles (considered light-duty vehicles under 3.5 tons) were sold worldwide, an increase of over 40% compared to the previous year, with electric vehicles accounting for about 7% of all light-duty vehicles. Major markets include China (450,000 units), Europe (117,000 units), and the United States (26,000 units).