Domestic Electric Vehicle Sales Share in Q2 Hits Record High of 4.2%

Electric Vehicle Sales Growth Accelerates Sharply

Ioniq 5

[Asia Economy Reporter Changhwan Lee] In the second quarter of this year, the market share of electric vehicle (EV) sales in the domestic automobile market reached an all-time high. This was thanks to the popularity of major EV models such as Hyundai Motor's Ioniq 5 and Tesla's Model Y.

According to the Korea Automobile Manufacturers Association (KAMA) and Hana Financial Investment on the 2nd, the market share of EV sales in the domestic automobile market in the second quarter reached 4.2%, marking a record high. The EV sales share has been sharply rising, from 1.9% in the second quarter of last year to 2.9% in the first quarter of this year.

As of June, domestic EV sales increased by 61% year-on-year to 7,918 units. The sales share was 4.6%. Annually, the shares were 1.6% in 2018, 1.8% in 2019, and 2.3% in 2020, with this year expected to be around 4%.

The increase in EV sales in the second quarter is attributed to the full-scale launch of new models by major companies. Hyundai Motor released its first dedicated EV, the Ioniq 5, domestically in the second quarter.

The Ioniq 5, which has gained great popularity with over 40,000 pre-orders, shipped a total of 9,046 units in June, with 3,667 units sold domestically. Thanks to the popularity of the Ioniq 5, Hyundai's EV shipments in June reached 16,059 units, a 17% increase compared to the previous year.

Tesla's Model Y, which was first launched domestically in May, sold 3,328 units that month, ranking first in imported car sales. In June, it sold 1,972 units, ranking third in imported car sales volume.

The increase in EV sales is a global trend, not just in South Korea. Worldwide EV sales in the second quarter surged by 200% year-on-year to approximately 1.41 million units. During the same period, the EV sales share more than doubled from 3.1% to 6.8%.

Automotive industry research firm LMC Automotive forecasts that by 2028, global EV sales will reach 17 million units, accounting for 15% of new car sales. Global credit rating agency Fitch also recently projected in a report that the global EV sales share could increase up to 45% by 2040.