Friday, July 12, 2024

South Korea targets 12 percent share of global electric vehicle market

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South Korea’s Ministry of Trade, Industry and Energy held a meeting on the roadmap for electric car production and announced an investment of around 95 trillion won for 2026.

During the meeting, Industry Minister Lee Chang-who chaired a meeting attended by senior officials of major automakers and related companies, including Hyundai Motor Company, Kia Corporation, General Motors Korea, and major wireless operator KT Corporation, and announced at the event a comprehensive roadmap on South Korea’s target in the global electric car market.

Quoted from Yonhap on Thursday (29/9/2022), the South Korean government promised to provide tax incentives and various supporting measures to promote investment for carmakers.

“We will actively relax regulations to ensure the smooth entry of new service models and technologies into the market,” said Lee Chang-yang at the meeting.

“We will continue to consult with companies to design detailed steps and strategies to achieve goals,” he said.

The South Korean automaker plans to increase their global electric vehicle production to a combined 3.3 million units by 2030 from around 254,000 units last year to cover 12 percent of the world electric vehicle market. Their market share will reach 5 percent in 2021.

To achieve the target, the carmakers pledged to develop mainstream electric vehicle software with their own technology by 2026 and nurture 30,000 personnel with expertise in the car sector of the future. Plus 300 companies specializing in automotive software development by 2030.

As for automotive semiconductors, the country aims to manufacture processors, sensors and other key parts so as to be able to double its global market share to 6.6 percent by 2030, the ministry said, adding the development of highly competitive electric and hydrogen vehicles is also among its plans.

In order for the transition to take place quickly and smoothly, the South Korean government pledged to support efforts by auto parts manufacturers to diversify their business portfolios.

This business portfolio will improve monitoring of the supply and demand situation of key industrial goods that are highly dependent on the country’s imports. Also increase reserves, in order to be free from unexpected global supply disruptions.

How to advance autonomous driving technology will also be a key focus, as South Korea pledges to support key related components to enhance competitiveness by building research complexes for their domestic commercial production from 2024.

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