[Inside Chodong] Drawn to Small Electric Cars

[Asia Economy Reporter Kim Jonghwa] "It is a perception that neglects small cars."

K, the CEO of a company that produces and sells ultra-small electric vehicles, immediately answered this way when asked, "What is the biggest obstacle blocking the expansion of the ultra-small electric vehicle market?" It is not the lack of charging infrastructure, insufficient subsidies, or regulations preventing driving on car-only roads, but the negative perception of small cars that is the biggest hurdle! As a writer who envied the truly diverse small cars weaving through alleyways during a trip to Europe, it was somewhat surprising but soon understandable.

In the domestic automobile market, small cars are a 'gye-reuk' (a Korean idiom meaning a necessary but neglected thing). The larger and higher-performance the car, the higher the unit price and profit, so domestic automakers focus on large luxury cars.

According to analyses by the automotive industry and sociologists, the reason Korean society neglects small cars is that cars are perceived as goods for the family rather than individuals, and the size of the car is considered a tool to display one's 'wealth' and 'social status.' Moreover, there is a widespread belief that bigger cars are safer, and it cannot be denied that small car and compact car drivers sometimes feel threatened by larger vehicles on the road. For these reasons, the preference for small cars is not high.

According to data from Kaizyu Data Research Institute, last year, domestic passenger car sales reached 1,657,186 units, a 7.5% increase from 2019 (1,540,880 units). However, sales of compact and small cars decreased by more than 10%. Last year, 173,418 small cars were sold, a 12.2% decrease compared to the previous year (197,601 units), and compact cars sold 98,743 units, a sharp 14.3% drop from the previous year (115,218 units). Notably, compact car annual sales fell below 100,000 units for the first time in eight years.

Although the preference for small cars will not suddenly surge, it is hoped that consumers attracted by environmental concerns, practicality, and low purchase and maintenance costs will gradually increase. The ultra-small electric vehicles encountered during recent reporting may serve as a catalyst.

Ultra-small electric vehicles are smaller than compact cars. They have a maximum rated output of 15 kW or less, engine displacement of 250cc or less, weight of 600 kg (passenger) or less, speed of 80 km/h or less, and dimensions of 3600 mm length, 1500 mm width, and 2000 mm height or less, accommodating 1 to 2 passengers. In Korea, nine companies including KST Electric, Sebo Mobility, and Master Electric Vehicle are producing them, and sales are increasing as delivery vehicles or personal short-distance second cars.

They have received 'EU L7 certification,' proving safety in crash tests, and vehicle maintenance costs are low?electricity costs about 40,000 KRW per month even when driving over 100 km per day. With subsidies from local governments, they can be purchased for 8 to 9 million KRW.

Driving and parking are convenient. There is no acquisition tax, annual automobile tax is about 130,000 KRW, and parking fees are half price. The only consumable is brake oil, which needs occasional replacement. Because they travel at speeds below 80 km/h, they cannot use car-only roads, but regulatory improvements are underway, and driving on dedicated roads is expected to be possible soon.

If small and practical ultra-small electric vehicles become more common than now, air pollution caused by exhaust gases will decrease, urban traffic flow will improve, and parking difficulties may ease somewhat. A change in consumer perception that does not neglect small cars is the first step toward creating stylish, small cars that embody Korea’s world-class automobile production technology, allowing these cars to roam our land and be sold worldwide.