The decline of subsidies, inconvenient electric vehicle charging, and high prices compared to internal combustion engine models are causing electric vehicle inventory to stack up.
According to KAISU, the cumulative sales of electric vehicles until April of this year totaled 36,803 units, a drop of 27.7% compared to 46,977 units sold during the same period last year. In April, electric vehicle sales amounted to 11,253 units, reflecting a dramatic decrease of 46.5% from March’s 21,016 units.
On the contrary, hybrid vehicles saw an upsurge, with 130,693 units sold, representing a significant increase of 31.3% compared to 89,786 units sold during the same period last year. The declining subsidies and the higher prices of electric vehicles have created aversion among consumers considering the purchase of new cars.
In light of these circumstances, automotive brands are preparing new sales strategies focusing on cost-effective electric vehicles. The first among them is the Kia EV3.
The EV3 is a compact electric SUV that made its debut on the 23rd, aiming to lead Kia’s electric vehicle sales. During Kia’s EV DAY last October, Kia’s President Song Ho-sung highlighted that the EV3 will be priced between $35,000 (approximately 47.39 million KRW) and $50,000 (approximately 67.7 million KRW), which will help alleviate the financial burden on customers, emphasizing that it will be launched in the first half of next year.
In the import vehicle market, the Volvo EX30 is in preparation. Like the EV3, the EX30 is also a compact electric SUV. It is equipped with a 69 kWh battery and a 200 kW motor, allowing it to travel up to 475 km under WLTP standards. The EX30 supports DC charging of up to 153 kW, enabling it to charge from 10% to 80% in just 26 minutes.
The EX30 incorporates Volvo’s safety technology thoroughly. It comes with advanced driving assistance systems such as Pilot Assist, Automatic Emergency Braking at intersections, and Lane Departure Mitigation, significantly enhancing passenger safety. Additionally, it uses the T-map Auto system, achieving a success rate of 96% in Korean language recognition, thus improving the convenience for drivers. The prices are set at 49.45 million KRW and 55.16 million KRW (before subsidies), significantly increasing consumer accessibility.
Moreover, Mercedes-Benz’s small electric SUVs EQA and EQB will be partially revamped and launched in the market this month to further elevate Mercedes-Benz’s electric vehicle sales share. As electric vehicles pile up due to economic downturns and poor sales, the effectiveness of automakers’ cost-effective electric vehicle strategies will be revealed through sales results.
Lee Sang-jin daedusj@autodiary.kr