Affordable Models and Subsidy Changes Help Drive Sales Rebound
Hyundai Motor and Kia’s domestic sales of dedicated electric vehicle models nearly doubled last month, signaling a clear rebound in the EV market. The increase was driven primarily by affordable models such as the Kia EV5 and EV3, alongside the government’s planned revisions to next year’s subsidy criteria and discount programs offered by automakers.
According to Hyundai Motor and Kia on Nov. 9, combined domestic sales of their IONIQ and EV series totaled 12,267 units last month. This represented a 95.9% increase from 6,261 units in the same month a year earlier and a 62.5% rise from 7,551 units in the previous month. By brand, Hyundai Motor’s IONIQ series sold 3,617 units, up 68.8%, while Kia’s EV series sold 8,650 units, up 110.1%, leading the overall increase. Cumulative sales of dedicated EV models from both automakers reached 116,159 units in the January-October period, up 77.1% from the same period last year.
The Kia EV5, part of the brand’s more affordable EV lineup, recorded particularly strong growth. The model sold 3,558 units last month, surging 209.4% year-on-year, while the EV3 also posted sales of 3,124 units, up 119.5%. Hyundai Motor’s IONIQ 5 sold 1,903 units, up 71.6%, while the IONIQ 6 and IONIQ 9 also contributed to the broader sales growth.
Industry observers attribute the increase to the expansion
Industry observers attribute the increase to the expansion of more affordable EV lineups and changes in subsidy policy, which may have prompted some consumers to bring forward their purchases. The government is considering lowering the vehicle price ceiling for eligibility for the full national EV subsidy from the current 53 million won to 50 million won next year.
Hyundai Motor Group’s electrification strategy has also continued to gain traction in overseas markets. According to SNE Research, the group’s global EV deliveries reached 575,000 units in the January-September period, up 19.0% from a year earlier. This exceeded the global EV market’s growth rate of 5.8% by 13.2 percentage points, while the group’s global market share rose from 3.2% last year to 3.6% this year.
The rapid expansion of Chinese-made EVs in South Korea is emerging as a potential challenge. From January to September this year, 112,417 Chinese-made passenger EVs were newly registered in the country, 2.2 times the figure recorded in the same period a year earlier. Their market share also rose to 43.5%. Industry observers say stronger vehicle competitiveness and policy support will be needed to reinforce domestic production capabilities.
Hur Sung-soopr@businesskorea.co.kr
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