By Kim Hyun-bin
Korean electric vehicle (EV) and battery makers have seen their global market shares decline amid intensifying competition with Chinese and German rivals, according to industry officials Wednesday. The officials are calling on the government to expand investments to help EV and battery makers bolster related infrastructure and make inroads into emerging markets.
The Federation of Korean Industries (FKI) and the International Trade Center (ITC) analyzed the changes in the global EV and lithium-ion battery industries, which have been growing at an average annual growth rate of more than 20 percent.
According to the FKI, China and Germany's market shares rose by 9.5 percentage points and 3.8 percentage points, respectively, in 2021 from a year earlier. However, Korea, Belgium, and the U.S.' market shares fell 0.8, 2.1, and 8.5 percentage points.
The increase in China's EV market share is attributed to a 513.9-percent year-on-year jump in exports to the EU by Chinese automakers such as Shanghai Auto, BYD and Tesla's Shanghai plant last year.
The EU is the world's largest import market for EVs, and China's share jumped 11.7 percentage points from 4.2 percent in 2020 to 15.9 percent last year.
Hyundai Motor Company and Kia Corp. exported 150,610 EVs in 2020 and 181,272 vehicles in 2021, up 20.3 percent.
"Although Korea's global EV market share has dropped slightly, the export numbers of EVs continue to surge for local companies as the global demand is increasing at a rapid pace, but so is the competition. The competition will become fiercer as automakers try to get a bigger piece of the growing market," an industry official familiar with the matter said.
As of last year, Germany, China, Korea, Poland, and Hungary held the biggest shares of the global lithium-ion battery market for smartphones and laptops as well as EVs. China's market share rose 2.9 percentage points compared to 2020, Poland's share grew 1.8 percentage points, Germany's share rose 1.2 percentage points and Hungary's share increased 0.3 percentage point. But Korea's share decreased by 2.0 percentage points during that period.
Based on total shipments, the global market share of EV batteries held by those countries jumped 10.3 percentage points from 38.4 percent in 2020 to 48.7 percent last year.
On the other hand, the market shares of the three Korean battery companies ― LG Energy Solution, Samsung SDI, and SK On ― decreased by 4.3 percentage points from 34.7 percent in 2020 to 30.4 percent last year.
Although Chinese battery makers have the largest share of the global EV battery market, their share of domestic demand is much higher than that of exports.
Excluding the Chinese market, the share of Korean batteries increased by 4.6 percentage points from 52.4 percent in 2020 to 57.0 percent last year.
"China has established itself as the world's No. 1 battery EV powerhouse through abundant battery raw material reserves and the government's support policies for domestic battery makers," said Kim Bong-man, the head of the international affairs department at FKI. "The new Korean government should strengthen policy support to expand related infrastructure and help companies to better target emerging markets."
Industry officials also point out that the Korean government needs to expand and better manage the EV infrastructure around the country to boost local EV sales.
"The government needs to make policies and introduce support measures to better expand and manage EV infrastructure, such as charging stations, especially in rural areas," an official at a domestic carmaker said. "The management of the facilities is also poor not only in rural areas but even in the capital region that is hindering EV sales."
Korean electric vehicle (EV) and battery makers have seen their global market shares decline amid intensifying competition with Chinese and German rivals, according to industry officials Wednesday. The officials are calling on the government to expand investments to help EV and battery makers bolster related infrastructure and make inroads into emerging markets.
The Federation of Korean Industries (FKI) and the International Trade Center (ITC) analyzed the changes in the global EV and lithium-ion battery industries, which have been growing at an average annual growth rate of more than 20 percent.
According to the FKI, China and Germany's market shares rose by 9.5 percentage points and 3.8 percentage points, respectively, in 2021 from a year earlier. However, Korea, Belgium, and the U.S.' market shares fell 0.8, 2.1, and 8.5 percentage points.
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The EU is the world's largest import market for EVs, and China's share jumped 11.7 percentage points from 4.2 percent in 2020 to 15.9 percent last year.
Hyundai Motor Company and Kia Corp. exported 150,610 EVs in 2020 and 181,272 vehicles in 2021, up 20.3 percent.
"Although Korea's global EV market share has dropped slightly, the export numbers of EVs continue to surge for local companies as the global demand is increasing at a rapid pace, but so is the competition. The competition will become fiercer as automakers try to get a bigger piece of the growing market," an industry official familiar with the matter said.
As of last year, Germany, China, Korea, Poland, and Hungary held the biggest shares of the global lithium-ion battery market for smartphones and laptops as well as EVs. China's market share rose 2.9 percentage points compared to 2020, Poland's share grew 1.8 percentage points, Germany's share rose 1.2 percentage points and Hungary's share increased 0.3 percentage point. But Korea's share decreased by 2.0 percentage points during that period.
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On the other hand, the market shares of the three Korean battery companies ― LG Energy Solution, Samsung SDI, and SK On ― decreased by 4.3 percentage points from 34.7 percent in 2020 to 30.4 percent last year.
Although Chinese battery makers have the largest share of the global EV battery market, their share of domestic demand is much higher than that of exports.
Excluding the Chinese market, the share of Korean batteries increased by 4.6 percentage points from 52.4 percent in 2020 to 57.0 percent last year.
"China has established itself as the world's No. 1 battery EV powerhouse through abundant battery raw material reserves and the government's support policies for domestic battery makers," said Kim Bong-man, the head of the international affairs department at FKI. "The new Korean government should strengthen policy support to expand related infrastructure and help companies to better target emerging markets."
Industry officials also point out that the Korean government needs to expand and better manage the EV infrastructure around the country to boost local EV sales.
"The government needs to make policies and introduce support measures to better expand and manage EV infrastructure, such as charging stations, especially in rural areas," an official at a domestic carmaker said. "The management of the facilities is also poor not only in rural areas but even in the capital region that is hindering EV sales."
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