South Korea Electric Car Market Size, Analysis, Forecast: By Propulsion Technology: Battery Electric Car, Fuel Cell Electric Car, Plug-in Hybrid Electric Car, Others; By Drive Type: Front Wheel Drive, Rear Wheel Drive, All Wheel Drive; By Top Speed; By Vehicle Class; By Vehicle Type; Market Dynamics; Competitive Landscape; 2024-2032

South Korea Electric Car Market Outlook

The South Korea electric car market is further expected to grow at a CAGR of about 33.8% in the forecast period of 2024-2032. The Government’s support to popularise electric vehicles and celebrity collaborations with automobile brands are anticipated to drive the market for electric cars during the forecast period.

The Provision of Subsidies by the South Korean Government and the Development of Ultra-Fast Charging Points to Upsurge the Usage of Electric Vehicles in South Korea

South Korea is expanding its electric car charging infrastructure to make sure that everyone can use their EVs effectively. According to the government, the national ratio of chargers to EVs must increase to at least 50%. To assist the purchase of approximately 27,000 EVs for the entire year, the Seoul city government provided incentives  to owners of more than 14,000 electric vehicles during the first half of the year 2023. The government intends to put around 3 million more EVs on the road in the following four years. This step of the government is anticipated to provide opportunities for the manufacturers to expand the production of electric cars to get the maximum market share in the South Korea electric car industry.

The Korean government has planned to construct more than 70 units of 350kW-class ultra-fast chargers, that can recharge automobiles three times quicker than chargers that are presently being used in the country. This will guarantee that after 20 minutes of charging, all drivers may travel at least 300 km (186 miles). The South Korean government has set a sales target that 15% of the sales must come from electric vehicles . Hence this is a significant factor contributing to the booming electric car industry in South Korea. 

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Market segmentation of South Korea Electric Car Market

An electric vehicle  is referred to as an EV. EV cars run entirely or mostly on electricity. While some electric vehicles (EVs) use lithium-ion batteries, lead-acid or nickel-metal hydride batteries are now considered the industry standard because of their improved energy retention and better durability.

Based on propulsion technology, the South Korea electric car market can be segmented into:

• Battery Electric Car

• Fuel Cell Electric Car

• Plug-in Hybrid Electric Car

• Others

On the basis of drive type, the South Korea electric car market can be divided into:

• Front Wheel Drive

• Rear Wheel Drive

• All Wheel Drive

Based on top speed, the electric car market of South Korea can be bifurcated into:

• Less than equal to 150 MPH (<= 150 MPH)

• More than 150 MPH (> 150 MPH)

Based on vehicle class, the electric car market can be segmented into:

• Mid-Priced

• Luxury

On the basis of vehicle type, the South Korea electric car market can be segmented into:

• Hatchback

• Sedan

• SUV

• Others

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The High Prices of Gasoline and its Exhaustion, along with Technological Advancements, are Compelling Consumers to Shift to EVs

Gasoline Being a fossil fuel is a non-renewable energy source and is depleting at a steady rate. The production and use of other fuel sources are vital for the environmental sustainability. This includes the usage of electric vehicles as they do not require gas and are more cost-effective in the long run. Since buying sustainable products is in trend these days due to the growing awareness regarding the growing environmental issues, there's a shift towards electric vehicles, which is bosltering the electric car industry in South Korea.

Electric cars outperform conventional automobiles in terms of fuel efficiency, low maintenance requirements, and ease of charging. A high-speed electric vehicle has four times the fuel efficiency of comparable diesel-powered vehicles. The high-speed electric vehicle  is substantially faster than low-speed electric vehicles traveling at 60kph. As a result, they are permitted to be used on all roads, including expressways, where the minimum speed to drive is 80kph. Therefore, the high-speed vehicles market is much bigger than the low-speed ones.  

The production and use of alternative fuel sources are crucial for environmental sustainability. Hydrogen fueling is the main benefit of fuel cell electric cars (FCEVs), which is why they are getting popular among elites. However, FCEVs are less common than EVs since they are more technically challenging to build than EVs and require more expensive materials like platinum and palladium. FCEVs are more expensive than comparable-sized vehicles as a result of these expenses. 

The South Korea electric car market is growing due to numerous developments in battery technology and the use of cutting-edge technologies like Advance driver assistance system (ADAS), Artificial Intelligence (AI), IoT, and others. Big companies spend a lot of money on giving their electric cars the most modern features, enhancing OEM competitiveness, and promoting market expansion.

Increasing Concerns of Global Warming and Sustainability are Compelling the Key Players to Launch Environment Friendly Cars in the Market

After covid-19, the demand for EVs has increased, especially SUVs . All the mid-range and luxury brands like Mercedes, BMW, SsangYong, Range Rover, Kia, and Renault motors are releasing new EVs in SUV models. At the same time, brands like Audi and Volkswagen are working to launch new hatchback and SUV models in the Korean electric car market. Hence, SUVs are expected to have a major market share in the mentioned forecast period. 

As concerns about global warming are increasing, customers are looking for technologically advanced vehicles that can help save the environment while offering high quality. With the increasing spending power and improved living standards, people are willing to buy premium vehicles.

BTS has created an active fanbase that is highly concerned about social concerns, which helped raise awareness. In 2019, Hyundai collaborated with BTS  and launched ‘Ioniq’ in three variants: EV, hybrid, and plug-in hybrid. Similarly, the ABB FIA Formula E-championship  appointed BTS as their global ambassador to promote sustainability and popularise electric vehicles among people. This has greatly augmented the growth of South Korea electric car market.

The use of electric vehicles, specifically electric cars is anticipated to expand throughout the forecast period as a result of factors such as increasing purchasing power, rising cost of fuel, steady depletion of fossil fuels, and government campaigns to raise public awareness about electric vehicles in the country.

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Key Players in the South Korea Electric Car Market

The report gives a detailed analysis of the following key players in the South Korean Electric Car market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Hyundai Motor Company

• Honda Motor Co., Ltd.

• Nissan Motor Co., Ltd.

• Kia Corporation

• Tesla, Inc.

• BMW AG

• Mercedes-Benz AG.

• Others

The comprehensive EMR report provides an in-depth evaluation of the South Korea electric car market based on the Porter's five forces model along with a SWOT analysis.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.