Car Association: "Removing Prejudices and Misunderstandings About Electric Vehicles Will Increase Demand"

The Korea Automobile Mobility Industry Association (KAMA) emphasized the importance of awareness improvement activities to eliminate public misunderstandings and prejudices about electric vehicles (EVs) in order to revive the declining demand for EVs.

On the 11th, KAMA held a specialized committee meeting on eco-friendly vehicles under the theme of "Consumer Awareness Improvement Measures to Revitalize Electric Vehicle Demand" at the Automobile Hall in Seocho-gu, Seoul. Kang Nam-hoon, chairman of KAMA, stated, "To overcome the sluggish demand for electric vehicles, extraordinary measures such as expanding subsidies are necessary," and added, "Awareness improvement activities to correct misunderstandings and prejudices about electric vehicles are needed."

According to a survey conducted by the Electric Vehicle Users Association targeting 529 people, positive perceptions of electric vehicles among non-owners were only about 59%, whereas positive perceptions among actual EV owners reached 90%. Negative perceptions were 9.4% among non-owners and 0% among owners.

The main cause of negative perceptions was most frequently cited as "negative news such as fires or sudden unintended acceleration accidents (54%)," followed by "lack of charging infrastructure (48.3%)." Kim Sung-tae, chairman of the Electric Vehicle Users Association, said, "Negative perceptions among non-users stem from prejudices and misunderstandings about electric vehicles, including negative media coverage," and added, "Consumer awareness improvement activities based on accurate information are necessary."

Professor Jung Yeon-je of Seoul National University of Science and Technology, who gave the next presentation, announced the results of an economic analysis comparing electric vehicles to internal combustion engine vehicles based on total cost of ownership. According to Professor Jung, as of 2021, the total operating cost of electric vehicles was approximately 6.5 million KRW more advantageous than that of internal combustion engine vehicles.

However, he analyzed that the economic advantage of electric vehicles is gradually weakening due to the continuous annual reduction of subsidies and the expiration of special discounts on charging fees. Professor Jung said, "Due to recent supply chain disruptions, the decline in battery costs has slowed, making it difficult to reduce vehicle prices," and added, "To overcome the electric vehicle chasm, it is necessary to secure a clear economic advantage through increased subsidies and charging fee discounts."

Chairman Kang also added, "For the next two to three years, it is necessary to maintain electric vehicle subsidies at the 2022 level (6 million KRW for passenger cars, 14 million KRW for cargo vehicles) temporarily for three years and to reinstate special discounts on charging fees, implementing groundbreaking incentive policies that consumers can feel."