As electric vehicle purchase subsidies in major cities across the country are rapidly being depleted, the automotive industry faces increased pressure for year-end sales. In Seoul, over 99% of this year's subsidy allocation has been exhausted, and with major metropolitan areas also closing applications, consumers may delay purchases until next year. Even if automakers launch year-end promotions, it is expected to be challenging to compensate for the hundreds of thousands of won in missing subsidies.
According to the Ministry of Climate, Energy, and Environment, as of 3 p.m. on November 9, there are only 135 electric passenger vehicle purchase subsidies remaining in Seoul. Out of the announced allocation of 19,648 vehicles this year, 19,513 have been selected for support. If the current pace continues, all available subsidies are expected to be exhausted by early this week.
The ministry has prepared two supplementary budgets this year to respond to the demand for electric vehicle purchases, but with most of the additional allocations already used up, it will be difficult to continue support through the end of the year. Applications for electric vehicle subsidies have also closed in the six major metropolitan cities: Busan, Daegu, Incheon, Gwangju, Daejeon, and Ulsan.
The depletion of subsidies directly impacts the demand for electric vehicle purchases. According to the Ministry of Trade, Industry, and Energy's 'Automotive Industry Trends for September 2026,' domestic automobile sales fell by 14.3% compared to the same month last year. The ministry cited the decrease in sales days due to the Chuseok holiday, waiting demand for new vehicles, and the depletion of electric vehicle subsidies as factors contributing to the decline in domestic sales.
Particularly, the actual purchase price of electric vehicles varies significantly depending on the availability of subsidies. This year, the maximum electric passenger vehicle purchase subsidy in Seoul, combining national and local funds for mid-sized and large vehicles, is 7.54 million won. Once the subsidies are exhausted, consumers will face higher costs for the same vehicles, leading them to postpone purchases or consider different models.
The automotive industry is also contemplating year-end sales strategies. Typically, manufacturers offer discounts and financing benefits to clear inventory and meet sales targets at year-end. This year, Kia is offering discounts of up to 10% on the EV6, up to 8% on the EV3, EV4, and EV9, and up to 7% on the EV5 and PV5 through its K-Sale Festa. However, it remains uncertain whether manufacturer discounts alone will be sufficient to encourage consumer purchases in the absence of government subsidies.
An industry insider stated, "The actual purchase price of electric vehicles varies greatly depending on subsidies, so more consumers may choose to delay purchases and wait for next year's support. Even if manufacturers offer their own discounts, it will be difficult to fully compensate for the subsidy gap."
* This article has been translated by AI.
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