Auto industry goes eco-friendly with EVs under gov't support

By Jhoo Dong-chan

The nation’s auto industry is expected to enter an inflection point in sales, as foreign and domestic automakers initiate an eco-friendly strategy in earnest with the launch of their new electric vehicles (EVs) this year.

Despite only taking 2 percent of the current market share in Korea, global automakers such as Hyundai Motor and General Motors will launch more eco-friendly models under the government’s move to introduce more EVs here.

According to a Hyundai Motor official, Tuesday, the company’s new EV, the Ioniq Electric, is expected to be unveiled in Korea during the International Electric Vehicle Expo 2016 that opens Friday at Jeju International Convention Center.

The mid-size car is the company’s first full electric model after the BlueOn, which was launched in 2010, and was first introduced during the Geneva International Motor Show last month. Utilizing a 28 kWh lithium-ion-polymer battery powering the internal-combustion motor that outputs 120 horsepower with a maximum torque of 30 kgf-m, the Ioniq Electric mounts a single-speed reducer transmission added to the driveline to get a top speed of 165 km/h and a maximum range of 169 kilometers on a single charge.

General Motors will, likewise, launch an extended range EV (E-REV), the Volt 2016, in June. Like plug-in hybrids (PHEVs), the Volt mounts a small combustion engine but runs mainly on a lithium-ion-polymer battery. The compact car has a maximum range of 80 kilometers on a single battery charge and is the first E-REV to be launched in Korea.

Unlike most PHEVs that can only run about 30 to 40 kilometers on a single charge, the Volt edges up to electric cars’ maximum range, and would run without its combustion engine until the battery level comes down to 20 percent.

Renault Samsung, launching the full electric sedan SM3 Z.E. in 2013 and having struck success especially on Jeju Island, is expected to soon introduce its world-popular Twizy ultra-small EV model in Korea. Sales of the battery-powered two-passenger EV in Europe have reached some 17,000 cars since its market launch in March 2012.

The Twizy was the European market’s best-selling EV in 2012 but is still going through the government’s permit process here.

Last week, the nation’s small-sized electric automaker Saean also launched three car and scooter models ― ultra-small WID, electric scooter WID-U and electric sports coupe ED-1. Saean uses next-generation battery technology, the nano lithium-ion-polymer battery, in its vehicles.

Separate from a series of launches of new EVs, car rental companies have reportedly decided to secure more EV in their operations.

SK Car Rental, which first offered an EV rental service on Jeju Island in 2012, has secured a total of 30 EVs including the recently added 15 Renault Samsung SM3 Z.E. and five Soul EVs from Kia.

The auto industry’s move toward EVs is attributed to the government’s efforts for eco-friendly streets.

The Ministry of Environment has provided a 15 million won ($13,900) nationwide subsidy for each EV purchase, and ten major cities and municipalities have also provided additional subsidies ranging from 3 million won to 8 million won.

Last year, the government announced its plan to encourage sales of EVs to reach 20 percent of the total auto sales by 2020, with a target of 200,000 accumulated EVs.

Combined with 868,000 targeted hybrid cars, the government aims to have a total of 1 million EVs and hybrids by 2020, a government official said.

Experts said, however, that the country’s EV infrastructure is still in its infancy, and there's still much room for improvement.

“Due to the lack of charging infrastructure and related technologies, consumers are still reluctant to buy EVs,” said an industry official.

“There are only 400 charging stations across the country, and most of them are located on Jeju Island. I believe the government need to push further to establish more EV infrastructure.”