The South Korea hybrid car industry is expected to grow at a CAGR of 6.7% between 2024 and 2032. Growing concerns about global warming and rising fuel prices are majorly driving the market. The South Korean government's initiatives and subsidies will further boost the market growth.
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A hybrid automobile combines a gasoline or diesel engine with an electric motor, and the two systems work together to propel the vehicle. The twin-powered hybrid engine of the car helps to reduce fuel consumption and preserve energy, making it a cost-effective option. Additionally, it reduces reliance on fossil fuels to a larger extent. The lightweight construction of hybrid cars results in lower energy consumption. When the hybrid vehicle is stationary or at a standstill, the engine is automatically turned off.
The demand for hybrid automobiles is increasing as a result of the rising price of crude oil and Korea's ongoing development of EV charging infrastructure. Moreover, the cost of gasoline in Korea reached a 10-year high, surpassing the 2,000 won ($1.65) per litre threshold for the first time since 2012. Because of the exorbitant costs, many people have decided to leave their automobiles at home and use public transport services instead.
The prolonged dispute between Russia and Ukraine, as well as supply interruptions throughout the world, has increased the price of crude oil and other necessary commodities, placing increasing inflationary burden on South Korea. At the current price point, the overall demand for hybrid automobiles is greater than the overall supply due to the economic recovery. High demand is causing price hikes for hybrid automobiles. As more and more people opt for hybrid cars, the resale value also continues to increase. Furthermore, a high standard of living and rising disposable income let customers opt for premium models.
Both companies and customers are now well aware of the environmental conditions of the planet earth. The steady increase in carbon emissions is adversely affecting the environment and is contributing to global warming. Hence, in order to achieve the goal of carbon neutrality, in August 2021, South Korea passed legislation enacting its pledge to achieve carbon neutrality by 2050, making it the 14th nation to do so. In accordance with the carbon neutrality law passed by Seoul, South Korea must reduce its greenhouse gas emissions by 30% from 2018 levels by 2035, based on a new national regulation. This regulation has substantially aided the growth of the hybrid cars industry in South Korea.
The implementation of strict pollution and fuel efficiency standards as well as government incentives for promoting the purchase and adoption of hybrid vehicles are some of the main drivers fuelling the growth of the hybrid cars market. The hybrid cars industry of South Korea is anticipated to expand rapidly due to governments' strict measures, including policies, subsidies, and greater efforts to provide public charging stations for electric and hybrid cars.
In South Korea, individual consumption tax reductions of up to 1 million won ($830) are already offered to hybrid vehicle owners. Owners of EV and hydrogen-powered vehicles can receive tax benefits of up to 3 million won and 4 million won, respectively. In the upcoming years, hybrid vehicle owners won't be eligible for state-sponsored purchase subsidies or tax benefits since they won't be included on a government list of environmentally friendly vehicles. This decision by the government is motivating customers to purchase the vehicle within the stipulated time to gain the maximum benefit, which will boost the market of hybrid cars during the forecast period in South Korea.
Over the past twenty years, hybrid vehicles have become quite popular among drivers of passenger cars. Both fuel and electricity are used to power the engines. Prior to its commercialization, the government would also actively promote the development of the necessary roadway infrastructure. The government intends to focus on encouraging investment in R&D for potential semiconductor products, strengthening core manpower, and enhancing production processes. In the period from January to June 2023, more than 203,700 green vehicles were sold in South Korea by five domestic automobile brands, including Hyundai and Kia, and importers, excluding Tesla. This is an increase of 40.7 per cent from the 140,760 recorded at the same time last year in 2021. The steady growth of hybrid car sales in South Korea offers opportunities for companies to further invest in R&D and propel the South Korean hybrid car market.
For two reasons, challenges to the lack of an EV charging infrastructure will fade with time. The range of the next BEVs is higher, so home and work charging are more than adequate for a customer's daily commute. Additionally, faster charging times allow the fast and ultra-quick charge stations to accommodate more BEVs. Despite the fact that these elements will lessen worries, they won't disappear. For people who can only find parking on the street, home charging is not always an option. During this time, a battery's capacity may be decreased in some situations by sustained quick and ultra-fast charging. This increases the possibility that the vehicle's overall range may eventually be reduced.
The supply chain may be hampered by the proliferation of the battery sector. To assure a flourishing EV sector, governments will need to establish clear legislative frameworks and stimulate international partnerships to ensure that the necessary investments are completed on time and in an ecologically and socially sustainable manner.
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Based on hybrid type, the South Korea hybrid cars market can be segmented into fully hybrid and mild hybrid. On the basis of vehicle type, the South Korea hybrid car market can be bifurcated into hatchback, sedan, and SUV, among others.
The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea hybrid cars market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.
In recent years, hybrid cars have become increasingly popular as people choose to gradually switch to more environmentally friendly vehicles. The full hybrid vehicles perform admirably in city traffic. They are ideal in urban settings since they mostly use their electric propulsion in these situations. Electric motors and combustion engines work together to power all-hybrid automobiles. The fundamental benefit of full-hybrid vehicles over mild hybrids is that both the sources of power run completely independently of one another. On the other hand, instead of driving the automobile independently, mild hybrids function by providing a slight boost to a standard internal combustion engine. Although each manufacturing company has their own unique approach, the basic idea is constant. Depending on the automaker, these technologies have been demonstrated to increase total efficacy by as much as 20%. The preference for hybrid cars has increased dramatically since the early 2000s and is continuously expected to grow during the mentioned forecast period.
With more than 11,700 units sold, Hyundai's Grandeur Hybrid model accounted for the majority of the hybrid car sales in South Korea. The Kia Sorento SUV, the Hyundai Tuscan, the Kia Niro SUV, and the Kia K8 Sedan, among others, were among the best-selling hybrid cars in South Korea in the year 2021. For people who want an electric car but are concerned about the scarcity of charging facilities and the high cost of the vehicle, hybrid cars are also a compelling alternative, and with the growing awareness among customers and government subsidies, all the segments are anticipated to follow a positive trajectory.
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Hyundai Motor Company- Hyundai Motor Company is a global South Korean automobile manufacturing company with its headquarters in Seoul, South Korea. The Hyundai Motors was established in 1967. The firm now holds a 33.8 percent stake in Kia Corporation and entirely owns two other vehicle brands, namely Genesis Motor, a subsidiary that produces premium automobiles, and Ioniq, a sub-brand that specialises in electric vehicles.
Honda Motor Co., Ltd.- Founded on September 24, 1948, Honda Motor Co., Ltd. (Honda) designs, produces and sells motorbikes, cars, and power equipment all over the world. The company's segments are motorcycle, automotive, financial services, and power products, among others. North America, Europe, and Asia are just a few of the regions where Honda conducts business outside of Japan. Japan, the United States, Canada, Mexico, the United Kingdom, Turkey, Italy, France, China, India, Indonesia, Malaysia, Thailand, Vietnam, Argentina, and Brazil are among the countries where it has production plants.
|Scope of the Report
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|Breakup by Hybrid Type
|Breakup by Vehicle Type
*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.
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
7 Industry Opportunities and Challenges
8 South Korea Hybrid Cars Market Analysis
8.1 Key Industry Highlights
8.2 South Korea Hybrid Cars Historical Market (2018-2023)
8.3 South Korea Hybrid Cars Market Forecast (2024-2032)
8.4 South Korea Hybrid Cars Market by Hybrid Type
8.4.1 Fully Hybrid
18.104.22.168 Market Share
22.214.171.124 Historical Trend (2018-2023)
126.96.36.199 Forecast Trend (2024-2032)
8.4.2 Mild Hybrid
188.8.131.52 Market Share
184.108.40.206 Historical Trend (2018-2023)
220.127.116.11 Forecast Trend (2024-2032)
8.5 South Korea Hybrid Cars Market by Vehicle Type
18.104.22.168 Market Share
22.214.171.124 Historical Trend (2018-2023)
126.96.36.199 Forecast Trend (2024-2032)
188.8.131.52 Market Share
184.108.40.206 Historical Trend (2018-2023)
220.127.116.11 Forecast Trend (2024-2032)
18.104.22.168 Market Share
22.214.171.124 Historical Trend (2018-2023)
126.96.36.199 Forecast Trend (2024-2032)
9 Market Dynamics
9.1 SWOT Analysis
9.2 Porter’s Five Forces Analysis
9.2.1 Supplier’s Power
9.2.2 Buyer’s Power
9.2.3 Threat of New Entrants
9.2.4 Degree of Rivalry
9.2.5 Threat of Substitutes
9.3 Key Indicators for Demand
9.4 Key Indicators for Price
10 Competitive Landscape
10.1 Market Structure
10.2 Company Profiles
10.2.1 Hyundai Motor Company
10.2.1.1 Company Overview
10.2.1.2 Product Portfolio
10.2.1.3 Demographic Reach and Achievements
10.2.2 Kia Corporation
10.2.2.1 Company Overview
10.2.2.2 Product Portfolio
10.2.2.3 Demographic Reach and Achievements
10.2.3 Toyota Motor Corporation
10.2.3.1 Company Overview
10.2.3.2 Product Portfolio
10.2.3.3 Demographic Reach and Achievements
10.2.4 Honda Motor Co., Ltd
10.2.4.1 Company Overview
10.2.4.2 Product Portfolio
10.2.4.3 Demographic Reach and Achievements
10.2.5 BMW AG
10.2.5.1 Company Overview
10.2.5.2 Product Portfolio
10.2.5.3 Demographic Reach and Achievements
11 Industry Events and Developments
List of Key Figures and Tables
1. South Korea Hybrid Cars Market: Key Industry Highlights, 2018 and 2032
2. South Korea Hybrid Cars Historical Market: Breakup by Hybrid Type (USD Million), 2018-2023
3. South Korea Hybrid Cars Market Forecast: Breakup by Hybrid Type (USD Million), 2024-2032
4. South Korea Hybrid Cars Historical Market: Breakup by Vehicle Type (USD Million), 2018-2023
5. South Korea Hybrid Cars Market Forecast: Breakup by Vehicle Type (USD Million), 2024-2032
6. South Korea Hybrid Cars Market Structure
The South Korea hybrid car market is projected to grow at a CAGR of 6.7% between 2024 and 2032.
The major industry drivers are increasing spending power, a growing number of charging stations, a high standard of living, consumer awareness regarding environmental concerns, enactment of carbon neutrality law and continuous research and development in the automotive industry.
Rising prices of crude oil and gasoline is the leading trend of the South Korea hybrid car market.
The dominant type of hybrid car in the industry are SUVs, hatchback, and sedan among others.
Hyundai is the largest automobile manufacturing brand in South Korea.
The major players in the South Korea hybrid car industry are Hyundai Motor Company, Kia Corporation, Toyota Motor Corporation, Honda Motor Co., Ltd, BMW AG., among others.
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