Will consumers be able to receive subsidies for electric vehicles…

Input 2021.02.15 14:16 | Revision 2021.02.15 14:21

Model Y, priced at 59.9 million won, scheduled for delivery in the second half of the year
Last year, the subsidy ran out in September, so you might not be able to get it.

As Tesla has set the prices for the 2021 Model 3 and Model Y, it is expected that Tesla will take a significant portion of the subsidy for eco-friendly cars this year. Consumers are trying to sign a contract as soon as possible to receive subsidies that are decreasing every year, but as the number of applications is increasing due to the high popularity, there are concerns that the subsidy will be exhausted before delivery of the vehicle.

On the 12th, Tesla Korea confirmed the prices of the 21-year Tesla Model 3 and Model Y and started accepting orders. In the case of the crossover utility vehicle (CUV) Model Y, which will be released for the first time in Korea, it was decided to be ▲59.99 million won for the standard range, 6999 million won for the long range, and 7999 million won for the performance.

The domestic selling price of the 2021 Model 3 is ▲Standard Range Plus 54.79 million Won ▲Long Range 59.9 million Won ▲Performance starts at 74.79 million Won. In the case of the long-range trim, it is 4.8 million won cheaper than the 2020 Model 3, and the industry analyzes that Tesla actually cut the price to receive subsidies.

According to the price set on the day, Model Y Standard Range, 21 Year Model 3 Standard Range Plus, and Long Range models will be able to receive 100% of the government’s eco-friendly car subsidy. As for the subsidy, the national treasury subsidy is up to 8 million won, and the regional deposit is about 4 million won.

As Tesla sets the price for subsidies, some consumers are worried that the subsidies will run out before delivery of the vehicle. According to Tesla Korea, Model Y will be released in the second half of the year and Model 3 will be released after at least three months. In order to purchase a vehicle with subsidies, it is necessary to wait until the delivery order is reached after a pre-contract, and then set a delivery date and apply for subsidy when the delivery vehicle is allocated. If local grants are exhausted prior to applying for grants, they will not be eligible for grants.

Electric vehicle subsidies are in the form of national subsidies plus local subsidies. Even if the government subsidies remain, if the subsidies of local governments are exhausted first, the local residents cannot receive the local subsidies when purchasing electric vehicles. In densely populated Seoul and metropolitan areas, the rate of exhaustion is faster. In the case of last year, subsidies in 18 regions, including Seoul and Gyeonggi, were exhausted in September.

In addition to Tesla, a large number of electric vehicles are scheduled to be released this year, which could speed up subsidies exhaustion. Hyundai Motor Company and Mercedes-Benz plan to release Ioniq 5 and EQA respectively. Kia’s CW will be released in July and Genesis’ electrified model JW will be released within this year.

Some consumers are considering contracting both the Model 3 Long Range and the Model Y Standard Range or delaying delivery until next year. Tesla Korea explained that if the subsidy is exhausted while the vehicle is waiting to be shipped after the pre-contract, the advance deposit of 1 million won can be refunded according to the consumer’s will. Tesla Korea said, “The order price can be refunded until the vehicle is registered.”