As high oil prices persist, car-sharing companies are increasing their adoption of electric vehicles and stepping up related marketing. Because EVs can reduce driving costs compared with internal combustion engine cars and, thanks to usage time and lower maintenance and management costs, show relatively higher profitability, companies are accelerating supply expansion.
According to the industry on the 19th, SOCAR plans to add about 800 Tesla Model Y vehicles by the end of September. Including vehicles already in operation, its Tesla fleet will grow to about 1,000. Early next month, it will also bring in about 100 units of BYD's compact electric sport utility vehicle (SUV) Atto 3. Through this, SOCAR plans to raise the share of EVs to about 14% of its total operating fleet by the end of the year.
SOCAR is not the only one speeding up EV adoption. Humax Mobility's car-sharing brand TurooCar also newly introduced 30 BYD Atto 3 vehicles in April.
◇ Because of fuel prices… EV usage time reaches twice that of internal combustion engine cars
A key reason car-sharing companies are increasing EV supply is that more users are choosing EVs due to high oil prices. Affected by the Middle East situation, the price of Dubai crude on the Singapore spot market rose about 50%, from $60.30 per barrel on Jan. 2 to $90.29 on Aug. 18. According to Korea National Oil Corporation (KNOC) Opinet, the average gasoline retail price at gas stations nationwide in the second week of August was 1,864.1 won per liter (L), above last year's average of 1,680.3 won.
As fuel costs rise, demand for EVs is particularly notable in long-distance car sharing. In the second quarter of this year, SOCAR's EV usage time per reservation was 27 hours, twice that of internal combustion engine cars. Long-distance trips exceeding 100 kilometers accounted for 84% of all EV usage. TurooCar also said the average usage time of EV users is about double that of internal combustion engine cars.
◇ Maintenance costs are low and profitability is high
High economic efficiency of EVs is a major advantage not only for users but also for car-sharing companies. According to SOCAR, when comprehensively considering expenses incurred during vehicle operations—such as fuel and EV charging, parking fees, car wash fees, and inspection and maintenance—the maintenance and management cost per vehicle for EVs is 34% lower than for internal combustion engine cars. As a result, the per-vehicle profitability of EVs was analyzed to be 53% higher than that of internal combustion engine cars.
In this environment, car-sharing companies are aggressively introducing EVs while also strengthening marketing. SOCAR does not charge separate driving fees for EV users and offers a carbon neutrality practice points benefit that returns the equivalent of 100 won per kilometer traveled. TurooCar also ran a promotion waiving part of the driving fee for Atto 3 and is currently offering discount coupons for EV usage.
◇ One out of six purchase quotes is for an EV… interest in Chinese EVs is growing
Interest in EVs is expanding beyond short-term car sharing into vehicle purchases and the lease and rental market. Chabot Mobility analyzed new car quote requests through its platform in the first half of this year and found that EVs accounted for 17.4% of all quotes, up 7.5 percentage points from 9.9% in the same period last year. In other words, about one in six vehicle quotes was for an EV.
Chinese EVs are also expanding consumer touchpoints through car sharing and lease and rental. According to Chabot Mobility's first-half data, BYD's Sealion 7 entered the rankings in the lease and rental market for the first time. A Chabot Mobility representative said, "It appears that consumer sentiment reflects a desire to first experience the residual value and maintenance burden of new brands through lease and rental rather than purchase."
The industry expects steady growth in EV demand in the car-sharing market. An industry official said, "Demand for EVs is increasing because driving expenses are lower than for internal combustion engine cars, but supply to support this is still insufficient," adding, "Companies are continuously reviewing EV adoption expansion and related promotions."