Ministry of Environment Reviews Electric Vehicle Deployment Performance by Companies and Provinces
Prepares Budget Reallocation Plans for Freight Trucks and Buses
Electric Vehicle Deployment Guidelines for Next Year... Subsidy System Reorganization
[Asia Economy Reporter Kim Bo-kyung] The government is set to adjust the allocation of electric vehicle (EV) supply volumes among different vehicle types and reform the subsidy payment system to expand the adoption of electric vehicles.
Along with plans to reallocate the budget for electric passenger cars to electric trucks and buses, the government is also considering excluding subsidies for high-priced vehicles such as Tesla, which have recently been the subject of controversy.
On the 9th, the Ministry of Environment announced that it will review the progress of the EV supply project in response to consumer downturn caused by the novel coronavirus disease (COVID-19) and low oil prices, and will promote institutional improvements to expand EV adoption.
On the 10th, the Ministry of Environment will hold a meeting with 11 manufacturers and sellers subject to the 'Low Emission Vehicle Supply Target System' at the Automobile Environment Association in Seocho-gu, Seoul, and on the 20th, it will hold a meeting for city and provincial EV supply project managers at the KTX conference room in Seoul Station.
Through these meetings, the ministry will conduct a mid-term review of the EV supply performance by companies and regions for the first half of the year, and discuss plans and suggestions for expanding EV supply in the second half.
In particular, the ministry plans to focus discussions on the supply status and market demand by EV model. Based on this, it will prepare a plan within this month to adjust this year’s EV supply budget by reallocating the budget for passenger cars and ultra-small trucks to trucks and buses.
The Ministry of Environment will also address shortcomings raised during this year’s EV supply project and start early preparations for next year’s EV supply project guidelines.
Furthermore, starting with a recent meeting with four automobile-related associations, discussions will continue with local governments, experts, and related associations until October. The ministry will review recent international trends and comprehensively analyze domestic market conditions and supply status to devise a plan to reform the EV subsidy calculation system.
To maximize the climate crisis response and fine dust reduction effects, which are policy goals of the Green New Deal, the subsidy calculation criteria will be completely revised to derive new support amounts by vehicle type, and the exclusion of subsidies for high-priced EVs will also be considered.
Choi Jong-won, Director General of Air Environment Policy at the Ministry of Environment, said, "For the successful achievement of the Green New Deal, the smooth implementation of EV supply is crucial," adding, "We will listen more closely to voices from the field and work closely with the EV-related industry and organizations."
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