South Korea Hybrid Cars Market Report and Forecast 2024-2032

South Korea Hybrid Cars Market Outlook

The South Korea hybrid cars market size is projected to grow at a CAGR of 14.4% between 2024 and 2032.

Key Takeaways:

• According to the International Energy Agency HEV (IEAHEV), South Korea aims to provide 4.5 million electric vehicles by 2030 within the transportation sector, thereby enhancing demand in the South Korea hybrid cars market.

• South Korea aims to increase its global clean vehicle market share to 12% by 2030, supporting production, technology, and demand.

• The government aims to boost the South Korea hybrid cars market by expanding electric vehicle chargers to 500,000 and hydrogen stations to 450 by 2025.

A hybrid car is a type of vehicle that uses both an electric motor and a gasoline engine to move. The electric motor is used for starting and driving the car at lower speeds, typically below 60 km/h, while the gasoline engine provides extra power during acceleration and high-speed driving. The car's battery gets charged through regenerative braking, which captures energy normally lost during braking to recharge the battery.

The benefits of a hybrid vehicle include improved fuel efficiency, lower operational costs, reduced emissions, and better performance. Hybrid cars are also quieter than traditional ones and require less maintenance because of their regenerative braking system.

South Korea, per the IEAHEV, targets supplying 4.5 million electric vehicles by 2030 in the transport sector. This goal drives the shift to clean transport, expanding hydrogen and electric vehicles, bolstering charging infrastructure, and promoting the replacement of internal combustion engine vehicles.

Further, plans include ramping up support to boost global clean vehicle market share from 5% to 12% by 2030, through robust backing for production, technology, and demand. To ease electric vehicle usage, the government aims to reach 500,000 electric vehicle charging facilities and 450 hydrogen stations by 2025, enhancing convenience for users of clean transportation thus boosting the South Korea hybrid cars market growth.

EV ADOPTION IN SOUTH KOREA, IN MILLION, 2022

Key Trends and Developments

The South Korea hybrid cars market is on the rise due to increasing acceptance among consumers, a wider array of available models, government backing, and improved driving experiences.

February 2024

Hyundai introduced the Staria Hybrid for the Korean market, with pre-orders open and initial specifications confirmed, featuring a 180kW 1.6-liter turbocharged hybrid system.

December 2023

Hyundai Motor Co., South Korea's biggest carmaker, delayed the debut of the full-size electric SUV IONIQ 7. This was to accommodate more affordable EV models like the EV3, EV4, and the electric Casper SUV.

November 2023

KG Mobility Corp. of South Korea collaborated with China's largest electric vehicle company BYD to construct a battery pack factory. They also worked together on developing the next-gen hybrid system.

June 2023

Lamborghini unveiled the Revuelto in Korea, its initial plug-in hybrid electric vehicle (PHEV) featuring a traditional V12 engine. This marks the brand's entrance into high-performance electric sports cars.

Growing Market Acceptance

The rising popularity of hybrid cars, driven by their fuel efficiency and reduced emissions, mirrors a broader trend towards environmentally friendly transportation choices, consequently stimulating growth.

Expanding Model Offerings

South Korea hybrid cars market developments are attributed to the car manufacturers that are broadening their hybrid selections by adding hybrid variants of popular models in different vehicle categories, catering to a wide range of consumer preferences.

Governmental Support

The government is providing incentives such as tax benefits, subsidies, and supportive regulations to promote the uptake of hybrids, incentivizing their ownership and utilization, thereby driving growth in the South Korea hybrid cars market.

Enhanced Driving Experience

Recent hybrid vehicles deliver remarkable performance by combining electric torque for rapid acceleration with combustion engines for consistent power, resulting in a gratifying driving experience.

South Korea Hybrid Cars Market Trends

Continuous advancements in hybrid technology led to enhanced fuel efficiency and lower carbon emissions, attracting environmentally conscious consumers.

According to the South Korea hybrid cars market report, the trend towards plug-in hybrids persists, providing longer electric ranges and the convenience of home charging, closing the divide between conventional hybrids and fully electric cars.

Market Segmentation

South Korea Hybrid Cars Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Hybrid Type

• Fully Hybrid

• Mild Hybrid

Market Breakup by Vehicle Type

• Hatchback

• Sedan

• SUV

• Others

Market Breakup by Propulsion

• HEV

• PHEV

The South Korea hybrid cars market is experiencing growth, particularly with full hybrids, as they optimize fuel efficiency by employing electric power for lower speeds and the combustion engine for higher speeds

Full hybrid vehicles produce reduced emissions when operating on electric power alone, employ regenerative braking for energy regeneration, provide quiet operation, qualify for tax incentives, and retain high resale value.

Mild hybrid cars boast improved fuel economy with a smaller electric motor, lower emissions through electric assistance, start-stop technology for fuel conservation, enhanced power during acceleration, decreased operating costs, and eco-friendliness.

Based on propulsions, the South Korea hybrid cars market share is led by HEVs due to their combination of an internal combustion engine and electric motor, which optimizes fuel efficiency and decreases dependence on gasoline

HEVs emit fewer pollutants when utilizing electric power, utilize regenerative braking for energy regeneration, provide quiet urban operation, lower maintenance expenses, and benefit from government incentives, promoting consumer adoption.

PHEVs offer extended electric range, versatile charging choices, emission-free electric mode, fuel savings, environmental advantages, and improved performance, addressing varied driving requirements and promoting sustainability.

Competitive Landscape

Key players are driving growth in the South Korea hybrid cars market with an expanding product portfolio, strategic partnerships, and a focus on improving the EV infrastructure.

Hyundai Motor Company, established in 1967, is a prominent South Korean car manufacturer based in Seoul. It is recognized for its diverse lineup ranging from small cars to luxury sedans and SUVs, with global manufacturing facilities.

Kia Corporation, founded in 1944, is a South Korean automotive company headquartered in Seoul. Known for its stylish and dependable vehicles, Kia produces a wide range of cars, SUVs, and electric models, with manufacturing sites worldwide.

Toyota Motor Corporation, founded in 1937, is a Japanese multinational automotive giant with its main base in Toyota City, Japan. Renowned for quality and innovation, Toyota manufactures a broad spectrum of vehicles, including compact cars, trucks, and hybrids, with a vast global presence.

Other key players in the South Korea hybrid cars market are BMW AG and Honda Motor Co., Ltd among others.

Key Highlights of the Report