Korean Market and OEM Activities: Slowdown in EV Demand, Expanding HV lineup
Hyundai and Kia to build EV plants in Korea, battery joint venture plants with LGES/SK On in the US
2024/07/25
- Summary
- Korean government: Aiming to have 4.2 million EVs on the road by 2030, continuing EV subsidies in 2024
- Korean vehicle production capacity is 4.48 million units, Hyundai and Kia building EV dedicated plants
- Hyundai Motor Group’s electrification strategy
- Hyundai Motor Group’s overseas production capacity increasing in India and the U.S.
- Hyundai Motor Group: 2023 global sales total 7.34 million units, ranking third in the world for the second consecutive year
- GM Korea: Enjoying strong sales of the Chevrolet Trax Crossover and Trailblazer for the U.S.
- Renault Korea (former Renault Samsung): Renovating Busan Plant to produce HVs and EVs
- KG Mobility (former Ssangyong): Launching low-priced electric SUV Korando EV in 2024
- Korean vehicle production, sales and exports: 2023 enjoying strong results, with the same level expected for 2024
- Sales Forecast by GlobalData: Korean light vehicle sales expected to be 1.8 million units in 2027
Summary
The Korean government aims to have 4.2 million electric vehicles (EVs) on the road and produce 3.3 million EVs per year by 2030 in Korea. To increase the use of EVs, the government has been providing subsidies to EV purchasers. In 2024, for EVs that cost KRW 55 million or less, purchasers will receive 100% of the subsidy (the maximum subsidy is KRW 6.5 million). Regarding EV batteries, the government also presented an industry development strategy to set up more than 60 GWh production capacity of batteries in Korea by 2025.
Current vehicle production capacity in Korea totals 4.48 million units. When construction of Hyundai Motor Co., Ltd.’s (Hyundai Motor’s) new EV plant at the Ulsan plant site and Kia Corporation’s (Kia’s) new EV plant at the Hwaseong plant site is completed in 2025, Korean production capacity is expected to increase to 4.83 million units.
Hyundai Motor Group has accelerated its electrification plan and aims to annually produce 1.51 million EVs in Korea by 2030 of which 920,000 will be exported. However, as demand for EVs has been stagnating since the second half of 2023, Hyundai Motor and Kia are also planning to launch hybrid (HV) models and add HV versions to more models.
GM Korea Company (GM Korea) plans to introduce two EV models and two gasoline models from the Chevrolet and Cadillac brand in 2024. The company invested KRW 200 billion to renovate equipment at the Bupyeong Plant and started building the Buick Envista new compact crossover SUV in June 2023.
Renault Korea Motors Co., Ltd. changed its name to Renault Korea Co., Ltd. (Renault Korea) in April 2024. The company has partnered with the Geely Group to develop the Compact Modular Architecture (CMA) platform. Renault Korea launched the new HV SUV Grand Koleos HV (code name Aurora 1) in June, 2024.
KG Mobility changed its brand name in Korea to KGM in November 2023, which has been used in overseas markets. The automaker and BYD signed agreements to jointly develop next-generation hybrid systems and produce battery packs in Korea.
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| Kia’s EV3, a new compact electric SUV (Photo: Kia) | KG Mobility’s Korando EV, a new electric SUV (Photo: KG Mobility) |
Related reports:
Korean Battery Supplier Operations in North America (Jan. 2024)
Analysis Report: Lithium-Ion Battery (Japan, Europe, North America and Korea) (Nov. 2023)
Korean Market and Brands: Public and Private Sectors Building EV/Battery Production Capacity (Jul. 2023)
Heavy-duty Commercial Vehicles Aiming for Decarbonization (Jun. 2023)
Hyundai to sell 1.87 million EVs a year by 2030 (Mar. 2023)
Korea Next Gen Mobility Technology Expo 2022: Electrification Technology (Dec. 2022)
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