In line with the ‘2050 Carbon Neutral’ and the Green New Deal, the government is spurring the expansion of the supply of pollution-free vehicles such as electric and hydrogen electric vehicles in the new year.
While increasing the electric vehicle purchase subsidy budget by 32%, the support standard for each vehicle price is subdivided into three stages. The strategy is to lead the popularization of pollution-free cars by fostering low-end models that more people can purchase.
On the 8th, the government announced a plan to reorganize the pollution-free car purchase support system with such details at the 2nd Innovation Growth Big 3 Promotion Meeting held at the Seoul Government Complex.
This year’s subsidy support was 110,000 units → 136,000 units
Through this reorganization plan, the government decided to increase the budget for purchasing electric and hydrogen electric vehicles by 32% to 1.4 trillion won. The purchase subsidy support scale from last year’s 110,000 units will also be expanded to 136,000 units. In order to popularize pollution-free cars, the standard of subsidy support for each price segment is differentiated from 0 to 100%.
A government official said, “In the early days of dissemination, technological innovation was induced in the direction of increasing the mileage, but it became important to demonstrate performance in a variety of environments. We designed the subsidy system to induce technological innovation and performance improvement, It is necessary to increase the price competitiveness of vehicles and promote conversion.”
Currently, major countries are operating the upper limit of subsidies to foster low-end models. However, Korea has uniformly paid 200,000 won per vehicle to automobile manufacturers and sellers. The government determined that it is necessary to provide incentives to automobile manufacturers and sellers that implement the’Low-Emission Vehicle Supply Target System’, which allows more than a certain percentage of their sales to be distributed as low-emission vehicles.
Tesla’Model S’not received,’Model 3’received… What are the criteria for subsidy support?
First of all, among the items to be considered when calculating subsidies, the proportion of’electric power consumption’, which corresponds to the fuel economy of electric vehicles, has been decided to increase. It will pay more subsidies to electric vehicles with high battery efficiency. In order to improve the performance deterioration problem in winter, incentives of up to 500,000 won will be provided to vehicles with excellent low-temperature mileage, and local costs will be differentiated in proportion to the government expenditure calculated according to vehicle performance. However, it was decided to maintain the support unit price for hydrogen electric vehicles, which are still in the early stages of supply.
It is worth noting that subsidy support standards will be differentiated for each vehicle price segment in the future. For example, the subsidy will disappear for high-priced electric vehicles of more than KRW 90 million, such as Tesla’Model S’, Mercedes’EQC’, and Audi’e-tron’. Tesla’Model 3′(LR, Performance), BMW’i3′, etc., 50% of the calculated amount is provided for the section of KRW 60 to 90 million, and Hyundai’Kona’, Kia’Niro’, Tesla’Model 3′(Standard), Renault Samsung’s’ZOE’, Korea’s GM’Volt’,’Peugeot’ and other vehicles with less than 60 million won will receive full support.
The subsidy for micro-cars with high demand for small self-employed and small business owners will be increased from 512 million won to 6 million won, and 10% of the total volume will be allocated to SMEs. 40% of the amount of subsidies was allocated to participating companies in’K-EV100′, which promised to convert 100% of owned and rented vehicles into pollution-free vehicles by 2030.
Priority supply of pollution-free commercial vehicles… Subsidies for hydrogen electric vehicles remain current
The supply of pollution-free commercial vehicles such as electric trucks and electric buses is also expanded. The supply of electric buses will be expanded from 650 to 1,000, and the subsidy for large buses will be reduced from 100 million won to 80 million won, reflecting the trend of vehicle price reduction. This is because it is judged that it would be better to first support commercial vehicles that have a greater effect of improving air quality and reducing greenhouse gas emissions compared to passenger vehicles. According to the Ministry of Environment, annual particulate matter emissions from passenger cars are 146 times that of freight cars and 292 times that of buses, but subsidies have been concentrated on passenger cars.
Electric taxis and trucks are also expected to be widely distributed from this year. The subsidy for the purchase of electric taxis will be increased from a maximum of 8.2 million won to a maximum of 10 million won, and the amount of support for electric trucks will also increase from 13,000 to 25,000. For hydrogen electric buses that maintain the subsidy support price, the amount of support will be expanded from 60 to 180 units. In addition, subsidies for the promotion of the hydrogen electric truck pilot project will be newly established this year.
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The fuel subsidy for commercial hydrogen vehicles is also paid only to buses, taxis, and trucks that are eligible for the current oil price subsidy. The unit price of the hydrogen bus subsidy was set at 3,500 won per kilogram (kg). As for the subsidy, the current oil price subsidy will be used for the car tax (local tax). The unit price of subsidy support for electric motorcycles for delivery is also maintained.
A government official said, “After an administrative notice of this year’s electric vehicle subsidy guideline (draft) by the 19th, the guidelines will be finalized and announced on the 21st,” and said, “As soon as the revision of the Passenger and Freight Vehicle Transportation Business Act next month is completed, ) “We plan to prepare the basis for the payment of fuel subsidies.”
