Trade minister stresses future car tech

Trade Minister Joo Hyung-hwan, second from left, speaks during a breakfast conference with the heads of domestic automakers at the Conrad Hotel in Yeouido, Wednesday. He called for aggressive investment in developing future car technologies during the conference. / Yonhap

By Jhoo Dong-chan

Korea’s trade minister encouraged domestic automakers to invest aggressively in future car technologies, such as eco-friendly and autonomous vehicles, in a bid to overcome the downturn in sales they face in emerging markets.

“The paradigm in the global auto industry is shifting rapidly since China has emerged as a leading industry and market for electric vehicles (EVs),” said Trade, Industry and Energy Minister Joo Hyung-hwan during a breakfast conference with heads of domestic automakers at the Conrad Hotel in Yeouido, Seoul, Wednesday.

“Domestic automakers now need to look into such technologies as a future growth engine. It will also contribute greatly to job creation.”

The conference took place to discuss future perspectives in the global auto market. According to sources, the nation’s five automakers suffered a decline in domestic and overseas sales by 6.2 percent and 13.7 percent, respectively, in the January to July period year-on-year.

As a part of the ministry’s support for domestic automakers, Joo said the government will support battery-developing firms’ research and development (R&D) projects and build more charging stations for EVs. Currently, there are only 300 charging stations across the country, the biggest reason for Korean consumers to hesitate buying EVs.

“The government is also pushing ahead with expanding tax benefits on domestic automaker’s investment in R&D for such vehicles,” Joo said.

The nation’s automakers welcomed the government’s decision. They also requested an immediate implementation of the old diesel-powered cars ban once it is passed by the National Assembly.

The nation’s largest automaker Hyundai Motor said it will invest in hydrogen fuel cells while Kia Motors promised to expand its investment in environment-friendly vehicles.

Renault Samsung will introduce the two-seater Twizy EV by the end of this year and invest in a 1-ton battery-powered commercial truck.

The nation’s smallest automaker, Ssangyong Motor, said it is developing its first EV model, and will launch it within two or three years.

Industry observers say the government is committed to help automakers introduce futuristic vehicles.

“It is nice to see the government working with industry insiders to discuss support plans, but it should come up with more concrete measures,” he said.

“The country needs more charging stations if it wants to see more EVs. Rather, the government introduced a charging fee for EV drivers in a bid to encourage private companies to build charging stations. With only some 5,000 EVs in the country, no companies will risk entering the charging business.”