By Jhoo Dong-chan
The pace to go eco-friendly in the U.S. automotive industry is expected to slow down due to President-elect Donald Trump’s negative views on eco-friendly policies. It could be an opportunity for domestic automakers, relative latecomers to the green car industry.
It may be good news for local carmakers at a time when analysts worry they could lose their market share in the world’s second-largest automotive market because of high tariffs ― Trump has vowed to raise tariffs to protect the U.S. industry and Korea is one of the biggest car exporters to the U.S.
Trump has actively expressed negative opinions on the industry’s trend toward eco-friendly cars, claiming on Twitter that “the concept of global warming was created by and for the Chinese in order to make U.S. manufacturing non-competitive.”
He also said the U.S. has oil deposits that can supply power for the next 250 years, so should actively develop and use them.
In order to promote and develop the eco-friendly car industry, the U.S. government has given a maximum $7,500 subsidy to those who buy electric vehicles (EVs). Also, the California State government has given additional benefits to owners of zero-carbon emission cars.
Such movements are expected to be scaled down or even abolished under the upcoming Trump administration.
“Trump has promoted America-first trade and energy policies, and suggested slashing budgets for the Climatic Change Convention and the global warming program,” said a Daishin Securities analyst.
“This will affect related subsidies and investment. Accordingly, the eco-friendly automotive market will see a slowdown.”
The slowdown is, however, expected to enable domestic automakers to buy some time to catch up with overseas rivals.
“Korea’s largest carmaker Hyundai Motor does not have advanced EV technologies as it did not develop the sector enough to compete with other global carmakers,” said an industry insider.
“If the global EV market does not open in earnest as expected, Hyundai Motor culd buy some time to catch up in technologies.”
In the meantime, the U.S.-based premium EV maker Tesla is expected to open its first showroom at Starfield Hanam in Gyeonggi Province this month and another in Gangnam, southern Seoul, next month.
GM also unveiled the Bolt EV last month and will start to sell it early next year.
The Bolt EV has a range of 383 kilometers once fully charged and comes with connectivity and infotainment systems.
Hyundai Motor’s latest EV model, the Ioniq EV, has a range of 191 kilometers, half that of the GM Bolt.