Hyundai Elec City, which has been struggling against the onslaught of Chinese electric buses, is now smiling brightly following the government’s subsidy cuts.
According to Kaizyu, from January to May this year, sales of Chinese electric buses fell to 233 units, a 16.4% drop compared to 279 units during the same period last year. Analysts suggest that the reduction in government subsidies has hit the sales of Chinese electric buses hard. In terms of sales from Chinese manufacturers in South Korea, Hanjin Motors and Photon recorded 15 and 11 units sold, respectively, up to May last year, while Skywell reported 10 units; however, this year, not a single unit was recorded during the same period. Haiger also declined from 162 units last year to just 107 units this year, a drop of 33%.
In contrast, Hyundai Elec City, which could not keep up with the total offensive from the Chinese electric buses, recorded 271 units sold by May this year, a significant increase of 27.6% compared to 196 units during the same period last year. The reduction in government subsidies for Chinese electric buses that use lithium iron phosphate batteries appears to have positively impacted the sales of Hyundai Elec City.
However, Hyundai Elec City should not relax just yet. There are still Chinese brands whose sales are increasing despite subsidy cuts. During the same period, Zhongtong increased its sales from 29 units last year to 35 units this year, a 17.1% rise, while BYD surged from 15 units last year to 58 units this year, marking an astonishing 286% increase. While the sales of uncompetitive electric buses are rapidly decreasing, some brands are consistently expanding their sales and reshaping the market based on price competitiveness despite the adverse conditions of subsidy cuts.
Lee Sang-jin daedusj@autodiary.kr