The government reorganizes the pollution-free vehicle subsidy system
6 million to 8 million won for domestic kona etc.
Tesla S and Mercedes EQC400 over 90 million won subsidy ‘0 won’ from this year
The government reorganizes the pollution-free vehicle subsidy system
6 million to 8 million won for domestic kona etc.
As the government reorganized the subsidy system for eco-friendly cars, high-priced foreign electric vehicles such as Tesla and Benz with a purchase price of 90 million won or more will not be able to receive any subsidies for purchase from this year. On the other hand, domestic electric cars such as Kona, Niro, and Ioniq can receive subsidies of 6.9 to 8 million won depending on the trim.
The government announced on the 21st the ‘2021 Reorganization of Pollution-Free Vehicles (Electric and Hydrogen Vehicles) Subsidy System’ with the above contents. The government’s plan is to expand the supply of electric and hydrogen vehicles by increasing subsidies for pollution-free vehicles.
Accordingly, the government plans to subsidize 121,000 electric vehicles this year. This is a 21.4% increase from the previous year’s 9,650 units. The budget for support was also increased from KRW 877 billion to KRW 1.3 trillion. The number of vehicles supported by subsidies for hydrogen vehicles is also planned to increase to 15,185 units, up 49.2% this year. The related budget will also increase from 239.3 billion won to 3655 billion won over the same period.
It also decided to expand subsidies for electric passenger cars, focusing on low-end models. It plans to pay 100% of the standard-based subsidies for vehicles that are less than 60 million won, without subsidies for expensive vehicles over 90 million won.
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According to this policy, top-end imported electric vehicles sold in Korea such as Tesla Model S, Jaguar I-PACE, Mercedes EQC400, and Audi e-tron will not receive subsidies. On the other hand, domestic cars such as Kona, Ioniq, and Niro can receive a differential payment of 6.9 to 8 million won in national subsidies depending on the weighted fuel economy. Hyundai Motor’s hydrogen car, Nexo, can receive 22.5 million won in national treasury.
In addition to government subsidies, local subsidies for pollution-free vehicles will also be expanded. In the case of electric vehicles, there are differences by local governments, but they plan to provide subsidies of 4 to 11 million won. Seoul subsidizes 4 million won per electric vehicle, and Jeollabuk-do subsidy 9 million won (based on a lump sum subsidy). Gyeongsangbuk-do pays up to 11 million won based on fuel economy and other standards. In addition, for hydrogen cars, a budget of 9 million to 15 million won is provided for each local government.
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Subsidies for small electric cargo trucks are greatly expanded. A lump sum subsidy of 16 million won will be paid to electric trucks produced by domestic companies such as Porter 2 and Bongo 3. Considering that the Porter 2 Electric’s launch price is between 40 million and 42 million won, a 40% discount is in effect.
The government is also planning to increase subsidies by declaring this year as the first year of the popularization of electric taxis, while expanding the installation of quick chargers in garages and shift sites. A total of 18 million won is paid per electric taxi, based on the city government and local expenses.
By increasing the amount of subsidies for electric buses, it plans to provide subsidies equivalent to 1,000 buses to transport operators this year. It also decided to increase the number of hydrogen buses supported to 180 units. However, in order to rationalize the market, it was decided to set a minimum self-pay limit so that the business owner must pay at least 100 million won for electric buses.
In addition, fuel purchase costs are supported for hydrogen refueling stations, which have been difficult to make profits. If the owner’s purchase cost of hydrogen fuel is higher than the fuel price at the break-even point, the budget will support 70% of the difference in losses. For businesses that make a deficit even with this subsidy, at least 70 million won per charging station will be provided, but the support fund will be managed in a manner that does not exceed 80% of the total deficit. The government is planning to install 31.5 and 54 additional electric vehicle and hydrogen vehicle chargers this year. /Sejong = Reporter Yangjun Cho [email protected]
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