Electric Vehicle Efficiency at Just 2%: Calls for Expanded EV Policies

As the automotive industry accelerates its transition to electrification, experts are calling for policy enhancements to keep pace. They emphasize the need for measures that not only address carbon dioxide emissions but also improve the energy efficiency of electric vehicles (EVs) and expand the automotive research and development (R&D) budget.

During the '2026 KAIDA Automotive Policy Seminar' held on November 9 at the FKI Tower Conference Center in Yeouido, experts unanimously agreed that despite the rapid increase in EV adoption, government support remains insufficient. In the first half of this year, internal combustion engine vehicles accounted for 64.5% of new car sales globally, a significant drop from 86.0% in 2021. In contrast, battery electric vehicles (BEVs) surged from 5.5% to 14.7% during the same period.

Professor Min Kyung-deok of Seoul National University, presenting on 'Policy Directions for Automotive Environmental Transition,' pointed out, "Currently, the government only considers that electric vehicles have zero CO2 emissions. However, the average energy consumption efficiency is deteriorating, which indicates higher energy usage."

He added, "There is a need for government policies or systems that can enhance the energy efficiency of electric vehicles. According to the energy consumption efficiency ratings imposed by the Ministry of Trade, Industry and Energy, only 2% of registered electric vehicles achieve the highest rating." He also noted that the government's automotive R&D budget has decreased from 499 billion won last year to 464.5 billion won this year, a reduction of approximately 6.9%.

In response, Park Jun-hyung, head of the Mobility Automobile Bureau at the Ministry of Land, Infrastructure and Transport, stated, "We will actively participate in international discussions to ensure that Korea's standards align with global practices and expand communication with the industry. We will also ensure battery safety certification and management, including for used batteries, to foster the battery industry."

He added, "We will incorporate the experiences from Gwangju, where autonomous vehicles are tested on public roads, into our certification and regulatory frameworks, and we will listen closely to the proposals made during this seminar to actively reflect them in our policies."

Til Schaefer, president of KAIDA, acknowledged that disruptions in supply chains, rising oil prices, and uncertainties in tariffs pose significant challenges to the global automotive industry. However, he stressed, "The government and industry must not cease their efforts toward decarbonization."

He further stated, "To facilitate the smooth introduction of advanced automotive technologies, we will continue open dialogues and maintain discussions among the National Assembly, government, researchers, and industry stakeholders, noting that Korea is rapidly advancing toward the commercialization of autonomous vehicles."