Government Policy for Nurturing the
Electric Vehicle Industry
EV market formation stage
- (EV stock) At the end of 2014 : 3,044 units
* EV sales are closely related with the government’s purchasing
subsidy.
- (Major Players) EV : Kia, GMK, RenaultSamsung, Nissan
* HEV : Hyundai, Kia, Toyota, Ford, Honda, Benz
- (Chargers) 3,201 (Slow 2,964, Fast 237)
< Figure > Government’s New Development Plan of EV Industry
2014
The number of
EV(000)
2015
2016
2017
2018
2019
2020
3
6
(3)
16
(10)
46
(30)
86
(40)
136
(50)
200
(64)
Public fast
charger(cumulated)
232
432
532
632
830
1,000
1,400
Driving range(km)
160
200
230
230
270
270
300
3
Sales in 2014 : Kia Soul(414), SM3(309), Spark(70)
< BMW i3 >
< Kia Soul >
< GMK Spark >
< RS SM3 >
4
Small EV platform development consortium
- The government is supporting the development of a practical,
small EV platform to be shared among EV players and invite
new EV players into the market.
- Project led by engineering company and 16 SMEs in
consortium for part supply and cooperative development
- A-seg. Front wheeler platform for passenger cars was
developed
- A-seg. Rear wheeler platform is to be developed for
truck and van variants.
Competition among OEM,
SMEs and Imported EVs will
accelerate from 2016.
5
Individual SM Electric Vehicle Companies are being
formed in cooperation with suppliers and investors.
- Passenger Vehicle ⇒ Light commercial vehicle &
Roadster
- SMEs are planning to produce EVs in 2017.
- Producing own models and converting models
< Cony, Light Commercial Vehicle
‘TX500e’ 2016 >
< Powerplaza Roadster YebbujanyR
2016>
6
The government’s new sales promotion program
- Dissemination of 200 thousand units by 2020
- Providing purchasing subsidy by 2020
* Subsidy will be reduced gradually.
- Electric Car : Max. 15 mil. Won
- Electric bus : Max. 100 million Won
* Subject to grants : Ray, Soul, Spark, SM3, Leaf, i3, Rabo Peace
< Figure > Government’s Purchasing Subsidy
Unit : tens of thousand Won
2014
Federal
Municipal
1,500
2015
2016
2017
1,500
1,500
1,200
2018
1,200
2019
1,000
2020
1,000
1.5 mil. Won(Seoul) ~ 7 mil. Won(Jeju)
7
Tax reduction within 4.2 mil. Won(individual consumption
tax, purchasing tax)
Support installation of a slow charger for EV buyers : 6
mil. Won(Stand & Wall type) 1 mil. Won(Mobile type)
< Figure > Government’s Distribution Plan(2015)
Province
EV
Charger
Province
EV
Charger
Seoul
736
708
ChungBuk
6
6
Busan
103
101
ChungNam
16
16
Daegu
50
50
JeonBuk
10
10
Incheon
13
13
JeonNam
100
100
Ulsan
50
50
GyoungBuk
43
28
Gwangju
100
100
210
210
Gyeonggi
104
74
1,515
1, 515
Gangwon
34
34
Source : MOE
Note : Charger is a slow charger.
GyoungNa
m
Jeju
8
(Gov’t Procurement) Make 25% of EV purchase mandatory
for new purchase or car rent
- Municipal governments are actively purchasing electricpowered vehicles for public use.
Hybrid Vehicle 1 million Won + Tax exemption max 3.1 mil.
Won
- Less than 97g/km CO₂ emission
* Subject to grants : Sonata, Prius, Prius V, Lexus CT200h, Fusion
< Table > Purchasing Subsidy and Tax Reduction(2015)
Subsidy
(mil. Won)
EV
Units
Budget
(bil. Won)
Tax
Reduction
(mil. Won)
Others
15
3,000
78.8
4.2
Charger
1
30,000
30.0
3.1
-
FCEV
28.5
33
1.9
-
Only for
Public
Institutes
PHEV
n.a
n.a
n.a
3.1
-
HEV
9
More than 10 municipal governments expand their
purchasing budgets of electric power vehicles in 2015.
- Jeju Special Self-Governing Province declare to be a
carbon free island by 2030.
- 852 units sold in 2013 and 2014 : 1,515 units(2015)
< Table > Comparison of Electric Vehicles
MEV Consortium
Soul EV
(Kia)
SM3 ZE
(Renault
Samsung)
Spark EV
(GMKorea)
Rabo Peace
Size
Mini
Small
Small
Mini
Pick-up
Maximum speed
140km/h
145km/h
135km/h
145km/h
95km/h
One-time charge
mileage
130km
148km
135km
135km
67.5km
Battery
15.1kWh
27kWh
26.6kWh
21.4kWh
17.8kWh
Price(ten
thousand Won)
2,500
4,250
4,190
3,990
3,790
Models
10
Construction of Charging Infrastructure
- Expand public rapid charging infrastructure
* The government will build at least 632 EV charging stations to make
EV charging available at any time and at any place by 2017.
* Public Fast charging station : 237 at the end of 2014.
- Build 1,400 charging stations through cooperation between
government and private sectors.
•
Established Charging SPC : 10 participating companies including
Hyundai, LG CNS, KT, KEPCO
•
Charger Manufacturers :
- Fast(4)- KODI∙S, PNE, SIGNET, HABA
- Slow(6)- LS, LG CNS, KODI∙S, PNE, SIGNET, HABA
11
EV charging stations are concentrated in Seoul and Jeju
and operate alongside the express highway.
< Figure > EV Charging Infra.
- The government supports the
private sector to lead EV charging
business via SPC participation.
Municipal governments actively
introduce electric-power vehicles
for public use and build charging
infrastructure.
- Metropolitan cities are introducing
battery electric taxis, buses and
CNG hybrid buses for public
transportation.
Seoul 915
Others 679
Daejeon/Chungnam170
Kyeongnam 271
Gwangju/Chunnam373
* EV: 140 taxis, 60 buses, 30 trucks
Jeju 793
* 300 CNG Hybrid Buses in 6 Metropolitan cities.
12
Developing various business models for EV.
- Nurturing the private sector leads charging service
business and battery lease business(2017)
- (Private charging business) Provide a paid EV charging
service that is available for 24 hours, like a gas station.
- (Battery lease) Allowance of battery lease business for
public entities, capable of going long distances
including EV buses, taxis and rental cars.
* Taxi and bus companies pay for the price of only the car body
and battery lease companies pay for the battery price
providing lease, maintenance and charge services.
- (Formation of ecosystem) of used E.V. insurance and
repairing.
- Promote start-ups and SMEs in electric-power vehicle
industry.
13
(Investment) OEMs and SMEs are starting to accelerate
EV development and commercialization
- Hyundai will launch the Sonata PHEV in the second half of
2015 and Avante EV/Hybrid in 2016.
* Hyundai will introduce 12 HEVs, 6 PHEV, 2 Evs, and 2 FCEV by 2020.
- GMK renewed the Spark EV and will launch the Volt in 2016.
- RenaultSamsung will introduce the mini Twizy EV of
Renault for a test-drive in Korea.
- Kia will introduce the K3 EV in 2016.
- Nissan is accelerating sale of the Leaf in Jeju island.
- Toyota is introducing various hybrid models to compete
with European diesel in the Korean market.
14
Building Infrastructure for successful commercialization
of FCEV.
- Test beds & proving grounds
in metropolitan areas.
< Figure > FCEV Infrastructure
- FCEV parts cluster and SME
supporting center in Chungnam and Gwangju.
- Supply of by-produced
hydrogen from Ulsan, Chung
-nam and Chunnam.
- Collaboration and differentiation
☞ 72 units in 2015.
FC Parts
Cluster
FC Town
FC
MakerPlace
Tech. Supporting Center
FCEV Proving ground
15