Korea Automobile Mobility Industry Association Holds Emergency Meeting
"All Vehicles Must Be Sold as Zero-Emission Vehicles by 2035"
"Market Encroachment by Chinese Electric Vehicles Will Accelerate"
The automobile industry has decided to propose to the government the introduction of production tax credits for eco-friendly vehicles and policies to stimulate demand, in order to achieve the '2035 National Greenhouse Gas Reduction Target (2035 NDC)'.
The Automobile Mobility Industry Association held an emergency meeting on the 26th and agreed that "the government's target for zero-emission vehicle distribution in the transportation sector must prioritize the sustainability of the domestic automobile industry's competitiveness." The association
The Automobile Mobility Industry Association held an emergency meeting on the 26th and agreed that "the government's target for zero-emission vehicle distribution in the transportation sector is a critical issue that will fundamentally change the current internal combustion engine-centered industrial ecosystem, and the sustainability of the domestic automobile industry's competitiveness must be the top priority in setting distribution targets." The association is a coalition of 11 automobile-related organizations, including the Korea Automobile Mobility Industry Association and the Korea Automobile Industry Cooperative.
On the 24th, the government announced its reduction targets for the transportation sector and its zero-emission vehicle distribution goals at the '2035 NDC Transportation Sector Public Forum'.
The proportion and number of registered zero-emission vehicles under each 2035 NDC reduction scenario, assuming a total of 28 million registered vehicles, are as follows: '(48% scenario) 30%, 8.4 million vehicles', '(53% scenario) 34%, 9.52 million vehicles', and '(61% and 65% scenarios) over 35%, more than 9.8 million vehicles'.
The association stated, "The government's announced distribution targets are at a level that would require almost all vehicles sold in 2035 to be zero-emission vehicles," and added, "Considering realistic distribution pathways, the 8.4 million vehicle target would require over 90% of vehicles sold in 2035 to be zero-emission, and the 9.8 million vehicle target would require 100% of vehicles sold in 2035 to be zero-emission."
Gang Namhoon, president of the association, pointed out, "Excessive distribution targets will lead to stricter regulations, such as average automobile carbon dioxide restrictions and mandatory sales quotas, increasing the regulatory burden on the industry and accelerating the market share of imported vehicles, especially Chinese electric vehicles, in the domestic market."
In addition, representatives of the auto parts industry emphasized, "Given the challenges such as U.S. tariffs and the electric vehicle chasm, we currently lack the capacity to invest in electric vehicles. Converting the parts ecosystem to 100% electrification within the next 10 years could threaten the survival of the parts industry." They added, "It is essential to first establish concrete and groundbreaking support measures for the transition, taking into account the parts industry's ability to adapt to electrification, and to devise strategies for the stable procurement of key minerals, which are highly dependent on Chinese supply chains."
Academia suggested that it is necessary to identify a variety of reduction measures in the transportation sector, including increased investment in research and development for zero-emission vehicles.
Gang Namhoon stated, "It is necessary to implement policies to strengthen the domestic production base through measures such as production tax credits for electric and hydrogen vehicles. At the same time, strong demand-creation policies that consumers can clearly experience must be prioritized." He added, "We will gather further opinions and submit a proposal to the government and the National Assembly."
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