A revised law on automobile safety and management took effect March 30 allowing local governments to designate roads on which the low-performance electric cars -- which run at less than 60 kilometers per hour and weigh less than 1,361 kilograms -- are available.
“By percentage, about 30 percent of local governments have designated roads for electric cars and have reported the designations to the ministry,” an official at the Ministry of Land, Transport and Maritime Affairs’ Motor Vehicles Policy Division said.
“But, because they are only required to tell us within 20 days of roads being designated for electric cars and an increasing number of local governments are doing so, the number we have now is inexact and growing fast.”
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| Neighborhood electric vehicles manufactured by local firms use a recharging station installed at a Homeplus store in Seoul. Yonhap News |
While CT&T, the country’s leading NEV maker, has exported its e-Zone electric car and signed on with Korean government agencies to supply the vehicle, e-Zone cars have yet to catch on with private motorists.
According to the company, only three or four have been sold to private consumers.
“The main cause is the lack of subsidies. The Japanese government provides different subsidies depending on the vehicle. For e-Zone the amount is about 700,000 yen, which is about 9 million won ($8,000),” a CT&T official said. He added that there is a similar subsidy system for electric cars in the United States.
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| Signs indicating whether a road is designated for neighborhood electric cars |
“This is not an issue the industry can push on -- it’s entirely up to the politicians -- but compared to other countries, our government’s response is weak.”
According to CT&T officials, the government has ruled out subsidizing NEVs citing that as the vehicles offer only a short driving range they have limited impact on reducing greenhouse gas emissions.
“It’s hard to understand why the government says that the environmental impact of NEVs is limited. Our vehicles do not use any motor fuel, and demand exists in both Europe and the United States,” a CT&T official said.
“The average daily running distance of cars in the country’s eight largest cities is only about 30 kilometers, and within that kind range it is unlikely that our cars will create problems.”
The question of subsidies also remains for full-speed electric cars.
“The subsidy will be given to electric car buyers during the test phase on a limited basis, and not given to the general public,” an Environment Ministry official said. He added that the ministry had no other plans in the works at present, and declined to comment further.
The lack of infrastructure for recharging electric cars is also a problem that affects not only NEVs but also full-speed electric vehicles.
While local and foreign carmakers have electric car plans for Korea, some in the industry say that such plans can’t help but be dependent on government policies.
Renault Samsung Motors Co. has plans to produce Renault’s electric cars in Korea, while GM Daewoo Auto and Technology Co.’s parent General Motors is planning to bring in a test fleet of its electric vehicle Volt to Korea next year.
The country’s largest carmaker Hyundai Motor Co. is also planning produce a fleet of electric cars this year, and being mass production in 2013.
“The most important thing is the infrastructure and government policies. Without the means to recharge an electric car, it is pointless for a company to make and consumers to buy electric cars,” an official at a local carmaker said.
“It could appear as though we are trying to pressure the government into providing subsidies and making infrastructure investments if we just go ahead and start producing electric vehicles.”
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