Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
EV makers delay new model launches amid safety concerns
Genesis Electrified G80 sedan / Courtesy of Genesis
By Lee Min-hyung
Genesis, Volvo postpone releases of new electric models
Global carmakers are delaying the launches of new electric vehicles (EVs) due to waning consumer interest and increasing concerns about battery fires.
Until recently, most EV makers have aggressively promoted their new or facelifted electric models to stay competitive in the rapidly evolving auto industry, which is increasingly driven by electrification.
However, few manufacturers are willing to continue with their planned releases of new models due to concerns about diminishing customer interest. This month, consumer confidence in EVs hit a low point following the sudden explosion of a Mercedes-Benz EQE electric sedan in an underground parking lot.
As other EVs from well-known brands like Tesla and Kia have also been involved in similar incidents — apparently due to defective batteries — more customers are losing interest in such vehicles and are choosing automobiles powered by hybrid or gasoline engines instead.
Against this backdrop, EV manufacturers are quickly responding to the negative customer sentiment by postponing their schedules for new vehicle launches.
A facelifted version of the Genesis Electrified G80, originally set for launch, Wednesday, has been postponed to an unspecified date, likely due to the rapidly declining demand for electric vehicles.
Volvo Car Korea was supposed to launch the EX30 electric subcompact crossover SUV in Korea during the second quarter of this year, but postponed the release to around the end of 2024.
The carmaker urgently needs to launch new vehicles to address declining sales. The local subsidiary of Volvo sold a total of 8,596 vehicles between January and July, down 12.9 percent from a year ago. The company currently has no plans to release new models in 2024, aside from the delayed facelift of the EX30.
Volvo Car Korea's EX30 subcompact electric SUV / Courtesy of Volvo Car Korea
Volvo is not the only carmaker experiencing a decline in sales. Various data indicate that customer preference for EVs is waning. According to market tracker Car Is You, a total of 65,557 EVs were sold in Korea during the first half of this year, down 16.5 percent year-on-year.
August figures have yet to be released, but they are projected to show an even steeper decline due to the nationwide apprehension toward EVs triggered by the Mercedes-Benz incident.
Industry officials stated that carmakers will need to adjust their schedules for new EV launches in response to the unexpectedly escalating concerns over battery safety.
“Most carmakers are focusing their strategies on boosting EV sales and attracting as many customers as possible before the widespread adoption of electric cars,” an official at an imported carmaker said.
“But they cannot push ahead with their original schedules due to the spread of the so-called EV-phobia. For now, most carmakers will take a wait-and-see approach, closely monitoring how the current concerns about EVs develop.”