One of the most mature and well-developed markets in Asia. A strong automotive industry, led by companies such as Hyundai and Kia. Along with a strong focus on the battery industry by companies such as LG Chem and SK Innovation.
The South Korean government in recent years implemented various policies supporting EV growth in the market such as incentives for manufacturing, research and development, and consumer adoption.
These factors led to the growth of the market leading South Korea to be one of the leaders in the Asian market.
South Korean EV market with its competitive advantages are:-
- Market Share: Hyundai and Kiar are two of the largest South Korean automakers with high investments in EVs in popular range models. Even though lagging behind major players like Tesla and Nissan, South Korean automakers are gaining popularity in the EV market. Such as Hyundai sold over 95,000 EVs in 2020, a YoY increase of 72%.
- Government Policy: A range of policies and incentives such as tax incentives, subsidies for EV buyers, and investment in charging infrastructure are promoting the adoption of EVs. The reason South Korea is apart from others is due to its promotion of EVs as a leader in the field. For example, a target of 1 million EVs on the road has been set by the government by 2025.
- Automaker Strength: Strong engineering and design capabilities are the core of South Korean automakers. Hyundai and Kia are known for their high-quality vehicles at affordable prices, extending their EV offerings. Due to its strength, a company like Hyundai was quickly able to scale up its production and reach new customers in the US, Europe, and China.
- Battery Technology: South Korean battery manufacturer LG Chem is one of the largest suppliers of Tesla vehicles. The country is home to its advanced battery technology for EVs with significant R&D investments, providing an upper edge in the advancement of battery technology in the Ev market.
- Charging Infrastructure: As of 2020, the country got over 10,000 charging stations and plans of installing more in the coming years. A significant amount of investments is made in the charging infrastructure with private companies creating a comprehensive network of charging stations.
- Consumer Adoption: EV consumer demand is rapidly growing in South Korea with the government’s supportive policies and strong reputation in advanced technology. A wide range of models and prices are accessible to South Korean consumers. Such as South Korea with an increasing number of EVs sold by over 50% YoY in the past two years.
The leading Automaker’s market analysis:-
- Hyundai is one of the leading South Korean automakers with significant investments in EVs development such as the IONIQ brand with a variety of range of EVs and plug-in hybrids. Hyundai also established a partnership with the South Korean government for building fast-charging network stations.
- Kia is another leading investor in EV development such as Niro and Soul. The company also established partnerships with other organizations and companies for further support of the EV market growth.
- LG Chem is also one of the largest South Korean producers of Lithium-ion batteries in the world. The company also made significant investments in advanced battery technology.
- SK Innovation is another leading South Korean battery maker with huge investments in advanced battery technology. The company also established leading partnerships with other automakers and organizations such as Volkswagen as a battery supplier for EVs.
The South Korean EV market is one of the most mature and sophisticated markets in the Asian region with consumers in high-quality, and innovative EVs with advanced technology and performance.
It is one of the strong automotive industries with a growing battery industry and a supportive government.
Source: EMR, Nikkei Asia