As electric vehicles (EVs) become mainstream, with one in four new cars sold in South Korea being electric, the domestic auto industry faces increasing pressure from low-cost Chinese competitors. Experts agree that South Korean automakers must enhance price competitiveness while the government provides time for necessary industrial transitions. Improving charging and maintenance infrastructure, along with consumer protection systems, is also seen as an urgent task.
Kim Kyung-yu, a senior researcher at the Korea Institute for Industrial Economics and Trade, stated during the 'EV Media Insight Talk' hosted by the Korea Automobile Journalists Association in Seoul on November 13, "When the share of new electric vehicle sales exceeds 15%, it indicates a shift from the initial market to a growth phase. Currently, this figure is approaching 25%. In the past, consumers purchased electric vehicles for environmental reasons, but now more are choosing them for economic reasons such as fuel savings and subsidies."
However, the growth of the market does not directly translate to enhanced competitiveness for the domestic auto industry. Chinese companies are expanding their influence in the global market by leveraging price competitiveness, forcing South Korean automakers to protect both profitability and market share. Kim emphasized, "To compete with Chinese electric vehicles, we must also be able to produce at lower costs, enhance production efficiency and flexibility, and utilize artificial intelligence in manufacturing to find practical solutions."
Choi Young-seok, a professor at Hanla University’s Department of Future Automotive Engineering, noted, "Chinese companies are entering the South Korean market due to restrictions in Europe and the United States. The government must provide time for the domestic industry to adapt to rapid changes, and companies must accelerate their internal transitions."
As the electric vehicle market moves into the mainstream, there is a growing call for policies that prioritize consumer benefits over those focused solely on subsidies, including maintenance networks and parts supply systems. Choi stated, "If parts supply is inadequate when a vehicle has an accident or issue, we need to establish systems that allow for practical consumer protection measures, such as vehicle refunds. Since individual responses from various government departments have limitations, we need fundamental solutions from the consumer perspective."
He also called for consistency in government policies and support that considers the entire industry. Choi remarked, "Clarity in government policy is crucial. Each department must respond comprehensively, considering domestic production, exports, parts suppliers, and even job creation."
Ryu Jong-eun, president of the Korea Automobile Journalists Association, stated, "In the face of intensifying competition with Chinese companies, domestic automakers need to focus not just on short-term profitability but also on strategies to maintain market share. Alongside government support, manufacturers must enhance their price competitiveness."
The 'EV Media Insight Talk' was held as part of the 'Omnipotent Battery - Exhibition to Promote Electric Vehicle Adoption' organized by the Ministry of Climate, Energy, and Environment. The main event runs from November 13 to 15 at Space S50 in Seoul.
Major automotive brands, including Hyundai and Kia, as well as Mercedes-Benz, Volvo, BMW, KGM, and Volkswagen, are participating in the event to showcase electric vehicles. The exhibition will also provide various information related to electric vehicles, including charging, economic viability, carbon reduction, and artificial intelligence, along with programs for attendees to experience electric vehicles firsthand.
* This article has been translated by AI.
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