Electric vehicle exports increased 66% last year … Beyond the first hybrid

Korea’s battery electric vehicle export surpassed hybrid vehicle sales for the first time. It has grown significantly, especially in the European market.

According to a report on the “ New Growth Industry Leader, Trends and Implications of Electric Vehicle Export ” by the Korea International Trade Association on 31, last year, Korea’s battery electric vehicle exports they increased 65.9% year-on-year to $ 3.9 billion. hybrid for the first time, exceeded tea exports ($ 2.5 billion).

Battery electric vehicles accounted for 54.7% of total green vehicle exports (US $ 7.1 billion), including all battery electric vehicles, plug-in hybrid vehicles and hybrid vehicles.

Last year, exports of battery electric vehicles have grown significantly, mainly in the European market. Exports to the UK, France and Italy showed a triple digit increase of 624.3%, 112.2% and 260.2% compared to the previous year, respectively. In Norway, where the introduction rate of green cars is high, 97.3% of the cars exported by Korea were battery electric cars. On the other hand, among cars exported to the US, battery electric vehicles accounted for only 3.4%.

Among eco-friendly car exports in Korea, the share of exports to Europe accounted for 68.0%. It was three times the share of all car exports to Europe (20.4%).

Looking at the current comparative advantage index (RCA), battery electric vehicles in Korea increased to 1.55 in 2017, 3.05 in 2018 and 3.18 in 2019 for three consecutive years. Plug-in hybrid cars also rose steadily to 1.57, 1.78 and 2.32. RCA means that if the index is greater than 1, the item has a comparative advantage over all exports, and the higher the index, the higher the competitiveness.

In the battery sector, which determines the performance and price of electric vehicles, Korean companies ranked 2nd, 4th and 5th in world market share from January to November last year.

Hydrogen electric vehicles only exported 995 units last year, but in terms of exports it was up 26.3% over the previous year.

Based on exports from Q1 to Q3 last year, Korean electric vehicles (battery electric vehicles + plug-in hybrid vehicles) ranked fourth in the world and fifth in the world as a whole for green vehicles. Same as 2019 ranking.

The Korea International Trade Association predicted that the global electric vehicle market will face new momentum as each country actively engages in environmental regulations, investment in charging infrastructure, and the provision of incentives for purchasing green vehicles.

“To concern the fast-growing electric vehicle market, especially the European market, it is necessary to closely understand the environmental regulations, incentive policies and market trends of each country, and supply a variety of competitive vehicles in a timely manner. “said Kim Kyung-hoon, a researcher at the Institute of International Trade and Commerce of the International Trade Association. investment in infrastructure and Reinforcement of R&D in line with the global trend of strengthening environmental regulations ”, he said.