The government and automakers have joined hands to revive the electric vehicle market. In addition to the electric vehicle purchase subsidies, the government will provide additional subsidies until the end of the year, while car manufacturers are lowering prices to reduce consumer burdens.
The Hyundai flagship electric vehicles, Ioniq 5 and Ioniq 6, offer a total basic discount of 4 million KRW with a manufacturer discount of 3.2 million KRW and charging credits of 800,000 KRW, plus an additional government subsidy of 800,000 KRW, making it a total discount of 4.8 million KRW. Kia is also offering discounts on electric vehicles. For the EV6, a manufacturer discount of 3.2 million KRW and an additional government subsidy of 640,000 KRW provide a total discount of 3.84 million KRW, which can rise to a maximum of 4.84 million KRW with additional stock discounts. Additionally, low-interest rates are offered for down payments exceeding 50%—3.0% for 36 months, 3.5% for 48 months, and 4.0% for 60 months.
If you purchase the 2023 Ioniq 5 2WD Exclusive with 19-inch Long Range trim for 56,980,000 KRW in Seoul, you can buy it for 43,580,000 KRW after applying the national subsidy of 6.8 million KRW, local government subsidy of 1.8 million KRW, manufacturer discount of 4 million KRW, and additional government subsidy of 800,000 KRW. That’s a savings of 13.4 million KRW from the base price.
The 2023 Kia EV6 Long Range Light, priced at 55,400,000 KRW, benefits from the national subsidy of 6.8 million KRW, local government subsidy of 1.8 million KRW, manufacturer discount of 3.2 million KRW, additional subsidy of 640,000 KRW, and if you also get a stock discount of 1 million KRW, it totals to 41,960,000 KRW. This decreases the price by 13.44 million KRW.
With electric vehicle adoption initially falling short of the targeted goals, the government is encouraging companies to reduce consumer burdens.
The enthusiasm for electric vehicles has significantly cooled compared to a year ago. Last year’s popular models often had a waiting time of over a year, but now it is possible to deliver them immediately without any waiting period.
As the government’s and industry’s efforts have considerably reduced consumer burdens, companies are hopeful for an increase in sales performance. However, whether these efforts can rekindle the excitement for electric vehicles that has faded remains uncertain.
Lee Sang-jin daedusj@autodiary.kr