South Korea’s automotive industry has raised unified concerns over the government’s 2035 National Greenhouse Gas Reduction Target (NDC), warning that the current approach could harm the sector if pursued without sufficient transition measures.
In a statement issued on November 10, the Korea Automobile & Mobility Industry Association (KAIA) said, “The target has been set without clearly resolving the problems caused by rapid transition,” adding that the government should “pursue goal achievement through bold demand creation policies rather than regulation-only approaches, so as to minimize industry shock and respond flexibly to market conditions.”
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KAIA represents a broad coalition of automotive groups, including the Korea Automobile Industry Cooperative, Korea Automotive Technology Institute, Korean Society of Automotive Engineers, Korea Electric Vehicle Industry Association, and several supplier associations for Hyundai Motor, General Motors Korea, and KG Mobility.
The association urged the government to implement transition policies that minimize disruptions to the parts industry and employment. It also suggested maintaining the overall transportation sector reduction target while diversifying the measures used to achieve it. “It is necessary to alleviate the burden on the automobile industry ecosystem through diversification of reduction measures within the transportation sector and adjustment of reduction ratios by each measure,” KAIA said, emphasizing the need to use multiple approaches — including hybrid vehicles and carbon-neutral fuels — rather than relying solely on zero-emission vehicle adoption.
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KAIA also called for easing regulatory intensity around carbon dioxide limits and zero-emission vehicle mandates to a “level that the industry can bear.” It proposed stronger incentive-based support, including increased subsidies for zero-emission vehicles, restoration of charging fee discounts, continuation of 50% highway toll reductions, and limited access to bus-only lanes for electric vehicles.
Additionally, the association urged the government to establish policies supporting the transition of the parts industry and workforce, such as tax credits for zero-emission vehicle production and medium- to long-term assistance plans to help sustain domestic EV manufacturing capacity.
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The government finalized its NDC plan on November 11, aiming to reduce greenhouse gas emissions by 53–61% from 2018 levels by 2035, despite pushback from the industry. While expressing concern, KAIA reaffirmed the sector’s commitment to the national climate goals, stating that “the automobile industry will make its best efforts to achieve zero-emission vehicle distribution targets by actively responding to the global climate crisis and expanding investments to maintain competitiveness.”
Source: BusinessKorea
