Price Decline Centered on Used Electric Vehicles Equipped with 'Chinese-Made Batteries'
After the electric vehicle fire in Cheongna, Incheon, a phobia of electric vehicles has spread among drivers. The number of electric vehicles for sale in the domestic used car market has increased. As the demand for electric vehicles decreases and the supply increases, prices are showing a downward trend.
Calls inquiring about the safety of electric vehicle batteries are flooding customer service centers of car companies. Some consumers have given up on purchasing electric vehicles, and conflicts have arisen, such as banning electric vehicles from entering underground parking lots in apartment complexes.
A notice stating that electric vehicles are not allowed to enter is posted at a parking tower in Mapo-gu, Seoul. [Photo by Yonhap News]
According to K Car, a direct used car platform, the number of electric vehicles registered for the 'Sell My Car Home Service' in the seven days following the underground parking lot electric vehicle fire accident in Cheongna, Incheon on the 1st increased by 184% compared to the previous week (from the 25th to the 31st of last month). Among the used electric vehicles registered during the same period, the Mercedes-Benz electric vehicle model involved in the fire accounted for 10%.
This indicates a significant increase in people putting electric vehicles up for sale after the fire, which is interpreted as a strong influence of anxiety about the fire.
Encar.com, an online used car sales platform company, also reported that among the 'Sell My Car' listings received from the 1st to the 8th, there were a total of 13 EQE models (EQE V295 and EQE SUV X294), greatly surpassing the 5 units registered throughout last month.
As supply increases and demand decreases, used electric vehicle prices are falling. According to Encar.com's 'August 2024 Car Price Index,' the used car prices of Hyundai Ioniq 5 and Kia EV6 fell by 1.97% and 1.11%, respectively, compared to the previous month.
In particular, Tesla Model 3 and Model Y prices dropped by 2.61% and 3.36%, respectively, showing a larger decline than average. It is analyzed that the Model Y listed for sale is a China-made model equipped with a lithium iron phosphate (LFP) battery, which may have influenced this trend.
With the fire controversy overlapping, the automotive industry is concerned that the current demand slowdown may worsen. According to Kaizyu Data Research Institute, the number of electric vehicles registered domestically from January to July this year was 80,613, a 13.4% decrease compared to the same period last year.
As public anxiety spreads due to successive 'electric vehicle fires,' the government is expected to announce a comprehensive plan as early as early September. It is anticipated to recommend 'above-ground installation' of electric vehicle charging stations, disclose battery manufacturers, and address measures to prevent overcharging.
Meanwhile, there are calls for improving electric vehicle battery performance. Solid-state batteries, which significantly reduce the risk of explosion, are needed. Currently produced batteries use liquid electrolytes, which pose a high fire risk if leaked. Replacing them with solid electrolytes can reduce the risk of explosion and fire while increasing energy density.
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