Government Announces Administrative Notice for '2022 Electric Vehicle Subsidy Processing Guidelines Revision'
[Sejong=Asia Economy Reporter Kwon Haeyoung] From this year, electric vehicles priced over 85 million KRW will no longer be eligible for purchase subsidies. The vehicle price threshold for receiving 100% of the subsidy will also be lowered to 55 million KRW from last year's 60 million KRW.
According to the Ministry of Trade, Industry and Energy on the 23rd, the "2022 Electric Vehicle Subsidy Management Guidelines Revision" containing these details will be announced for administrative notice until the 25th.
Under this revision, the government will more than double the number of electric vehicle subsidies from 101,000 units last year to 207,500 units this year to expand the spread of eco-friendly vehicles. Specifically, passenger cars will increase to 164,500 units, cargo vehicles to 41,000 units, and passenger vans to 2,000 units. However, the maximum subsidy per vehicle type will be reduced, with national subsidies capped at 7 million KRW for passenger cars, 14 million KRW for small cargo vehicles, and 70 million KRW for large passenger vans.
Various incentives will also be provided to encourage companies to lower electric vehicle prices and accelerate popularization.
First, to promote the spread of affordable vehicle models, the upper limit of vehicle prices eligible for subsidies will be lowered by 5 million KRW compared to last year. ▲The 100% subsidy eligibility threshold changes from vehicles priced under 60 million KRW last year to under 55 million KRW this year ▲The 50% subsidy range changes from 60 million to 90 million KRW to 55 million to 85 million KRW ▲No subsidy applies to vehicles priced over 90 million KRW, now lowered to over 85 million KRW. For affordable vehicles priced under 55 million KRW, if the price is reduced compared to the previous year, an additional subsidy of 30% of the price reduction, up to a maximum of 500,000 KRW, will be provided.
Furthermore, the government will actively promote the transition of commercial vehicles with high air quality improvement effects to zero-emission vehicles. To this end, the additional subsidy of 2 million KRW for electric taxis will be maintained, and 10% of the total passenger car quota will be separately allocated for taxis. 20% of the cargo vehicle subsidy quota will be allocated to corporations and institutions to support the large-scale transition of commercial cargo vehicles to zero-emission vehicles. Additionally, an extra subsidy of 5 million KRW will be provided when purchasing electric passenger vans used as children's school buses, which have long idling times and frequent engine idling. An additional subsidy of 500,000 KRW will also be given for purchasing ultra-small passenger or cargo vehicles for transfer or tourism purposes within specific regions.
Besides, support for high-performance and high-efficiency vehicles will be strengthened, and information necessary for evaluating the residual value of batteries will be provided to activate battery recycling by electric vehicle manufacturers and importers. Qualification requirements will be standardized by local governments, and announcing the subsidy at least twice will be made mandatory to improve related procedures for easier public understanding.
Detailed information can be found on the Zero-Emission Vehicle Integrated Website.
An official from the Ministry of Trade, Industry and Energy stated, "The government will finalize the revision based on collected opinions to accelerate the spread of zero-emission vehicles," adding, "We will lead the era of electric vehicle popularization by closely responding to supply conditions and demand changes to achieve the national greenhouse gas reduction target (NDC) in the transportation sector without fail."
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