Korean Market and Brands: Public and Private Sectors Building EV/Battery Production Capacity
Kia to set up electric PBV plant in Korea, Hyundai to construct EV plant in U.S.
The Korean government has set a target to raise its annual EV production to 3.3 million units, making the country one of the world’s top three EV producers, by 2030. To promote the use of EVs, the government is providing subsidies to EV buyers. In 2023, EVs that cost KRW 57 million or less will receive 100% of the subsidy (the upper limit of the subsidy for mid- to large-sized EVs is KRW 5 million). The government and automakers will jointly invest KRW 20 trillion in development of EV batteries and intend to start the commercial production ofnext-generation EV batteries ahead of other countries.
Korean automakers’ current production capacity totals 4.501 million units. When construction of Kia’s new plant for electric purpose-built vehicles (PBVs) is completed in 2025, Korean vehicle production capacity will increase to 4.651 million units. The Hyundai Motor Group is the only Korean automaker engaged in full-fledged manufacturing of vehicles overseas, with an annual production capacity of 5.758 million units outside Korea. When the construction of Hyundai Motor Company’s EV plant in the U.S. and its plant in Indonesia as well as the expansion of its plant in India are completed, the Group’s overseas production capacity will rise to 6.138 million units.
The Hyundai Motor Group is accelerating its electrification plan with a target to increase its EV production volume to 1.51 million units in Korea and 3.64 million units in the global market by 2030. Hyundai Motor Company plans to sell 1.87 million EVs while Kia intends to sell 1.6 million EVs (including 1 million PBVs; purpose-built vehicles) by 2030.
GM Korea Company plans to launch six new and facelifted models from the Chevrolet, Cadillac and GMC brands in 2023. The new Chevrolet Trax Crossover compact SUV released in the U.S. in February 2023, and then in Korea, is produced at the Changwon Plant. With its strong sales in the global market, the automaker is increasing production of the Trax Crossover in Korea.
As Samsung sold its entire stake in Renault Samsung, and accordingly, the deal on the use of Samsung’s trademark will be terminated, Renault Samsung changed its name to Renault Korea Motors in March 2022. In May, Geely Automobile (Geely Auto) and Renault Korea agreed that Geely Auto acquired a 34% stake in Renault Korea (Renault is still the largest stockholder). Renault Korea plans to launch a new hybrid SUV model using technologies from Geely and Volvo Cars for both the Korean domestic and export markets starting in 2024.
In August 2022, Ssangyong was acquired by the KG consortium led by the Korean KG Group, and changed its name to KG Mobility Corporation in March 2023. Its new SUV Torres launched in July 2022 enjoys strong sales, and it introduced the EV version in March 2023.
|Kia’s dedicated EV model, the EV9 mid-size crossover SUV (Photo: Kia)
|KG Mobility (former Ssangyong)’s new Torres EVX mid-size electric SUV (Photo: KG Mobility)
Hyundai to sell 1.87 million EVs a year by 2030 (Mar. 2023)
Korea Next Gen Mobility Technology Expo 2022: Electrification Technology (Dec. 2022)
Korean market and domestic brand trends: Semiconductor shortages reducing production and sales (Mar. 2022)
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