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Vehicle demand rises ahead of stronger emission standard

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By Park Jin-hai

As the Environment Ministry adopts stronger Euro 6 emission standards for vehicles sold here from September, customers are rushing to buy cheaper but less environmentally friendly Euro 5 models.

Under the Euro 6 standards, nitrogen oxide emissions are reduced to 80 milligrams per kilometer, down from 180. Particle matter will be reduced to 4.5 milligrams per kilometer from 5.

However, to meet the new standards a price hike was inevitable, because the vehicles need extra purification equipment, lifting the price of cars to 3 million won.

Local carmakers are already selling Euro 6 models. Hyundai has the i30, i40, Grandeur, Tucson and Santa Fe diesel models that meet Euro 6 standards.

However, for the Avante compact and Maxcruz SUV, Euro 5 models will be sold until new models are scheduled to launch in the latter half of this year. Hyundai will launch its new Sonata diesel in July, complying with Euro 6 standards.

Most Kia Motors vehicles meet the new environmental standards, including the Pride, Sorento, Carnival and Soul. The new Sportage with Euro 6 engine will be launched in August, and the new K3 sedan will come out in the fourth quarter. Kia will temporarily stop producing the popular Mohave SUV and roll out its latest version with a Euro 6 engine early next year.

“Currently, more than 2,000 customers are on the waiting list for the Mohave,” said a Kia Motors official. “Until the end of June, we could receive orders for the current model.”

GM Korea will adopt the new standards with the Trax compact SUV to be launched this year, with the Cruz, Malibu, Captiva and Orando models to follow.

Unlike local carmakers that will stop delivering Euro 5 models from September, foreign carmakers can deliver them until November, with the three-month grace period due to import procedures.

Volkswagen Korea has the Polo, Jetta and Golf GTD with Euro 6 engines, while the rest of the models have Euro 5 engines.

Audi has the A1, A6 and A7 with the improved Euro 6 standards, while the A8, Q5, and Q7 models are yet to adopt it.

“From the customers’ point of view, Euro 6 and Euro 5 do not have a significant difference,” said a Volkswagen official. “Aside from less gas emissions, the vehicles’ fuel efficiency and performance are the same. So more customers are trying to buy cars now before the new regulations raise vehicle prices.”

Compared with May, Volkswagen’s June sales rose more than 10 percent, according to the official.