Korea weighs tax incentives for EVs as Chinese rivals gain ground
Korea is weighing tax incentives for domestically produced electric vehicles (EVs) as Chinese rivals rapidly gain market share, fueling calls from automakers and lawmakers across party lines for government support to protect local production and jobs. Deputy Prime Minister and Finance Minister Lee Hyoung-il said the government would announce measures to strengthen the EV industry's…
Korea is considering offering tax incentives to domestic electric vehicle (EV) manufacturers as Chinese competitors quickly capture a larger share of the market. This move aims to bolster local production and safeguard jobs, as the government seeks to bolster its EV industry's competitiveness. Deputy Prime Minister and Finance Minister Lee Hyoung-il announced that the government would unveil measures to strengthen the EV sector's position this month, following discussions with Hyundai Motor Group's Executive Chair Chung Euisun.
The surge in Chinese EV sales in Korea has been significant. Chinese-made passenger EVs accounted for 43.5% of new registrations between January and September, a 8.4 percentage point increase from the previous year. This represented a doubling of registrations to approximately 112,400 vehicles, up from 51,500 in the same period the previous year. In contrast, the share of domestically produced passenger EVs declined by 6.2 percentage points, indicating a growing reliance on foreign brands.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
