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| BYD eBus-12 / Courtesy of Ezwelfare |
Beijing remains reluctant to subsidize Korean batteries
By Park Jae-hyuk
Concerns have grown over electric buses made in China, which are set to hit the Korean roads within a few months, taking advantage of the handsome subsidy given by the Korean government.
Industry officials point out the government policy may allow Chinese companies to take the lead in the Korean electric vehicle and battery markets, given that the buses are equipped with batteries made in China, the country which has remained reluctant to subsidize batteries produced by Korean companies.
According to industry officials, Wednesday, the Ministry of Environment decided last month to subsidize the eBus-12 made by BYD, China's largest electric vehicle maker.
The 11-meter-long low-floor bus is powered by a 324-kilowatt-hour lithium-ion battery pack also made by BYD.
The subsidized bus is attracting clients with a more competitive price.
Because the environment ministry, the land ministry and local governments are giving subsidies to the bus maker, the subsidized bus costs 200 million won ($179,000) less than it would without the subsidies.
Last month, the Daejeon Metropolitan City Government decided to use the bus for its pilot project on the intra-city electric bus transportation service. The eBus-12 will run in the city, beginning later this year.
The eBus-7, another electric bus produced by BYD, has also been running on Jeju Island since April.
"Starting from the eBus-12 in Daejeon and eBus-7 in Jeju, we will expand our presence in the Korean market with the nine-meter-long low-floor bus eBus-9, the e6 electric taxi and the T4 electric truck," said an official of EZwelfare, the Korean dealer of BYD vehicles.
The Seoul Metropolitan Government also established a plan to run 3,000 electric buses in the city by 2025, and began recruiting an electric bus manufacturer. Among eight automakers vying for the project, four are Chinese companies.
As the city will select new manufacturers for the project every year, the Chinese companies are expected to continue to compete for their expansion in the Korean market.
Korean automakers have urged the government to reconsider giving subsidies to Chinese companies.
Since 2016, the Chinese government has not subsidized electric vehicles equipped with batteries made by Samsung SDI and LG Chem. The two Korean battery makers saw their market share fall after the Chinese government decision.
Last month, Samsung Electronics Vice Chairman Yoon Boo-keun called on the Chinese government to help normalize the company's battery business there, during a meeting with former Chinese government officials and top executives in Beijing.
