"Subsidies Up 82% This Year" Electric Van Market Heats Up... Staria EV Set for Launch

2026 Electric Vehicle Purchase Subsidy Reform Plan
Electric Van Subsidies Up 82% Year-on-Year
New Models Like Staria EV Enter the Market
Government Supports Overcoming the Electric Vehicle Chasm

With the government significantly increasing subsidies for electric vans this year, the domestic market for these vehicles is expected to expand in earnest. The launch of new models such as the Hyundai Staria electric vehicle is expected to inject new energy into the domestic electric vehicle market by filling a previously vacant vehicle segment.

According to the Ministry of Climate, Energy and Environment's "2026 Electric Vehicle Purchase Subsidy Reform Plan" released on January 3, the budget for electric van subsidies this year is 279.5 billion won, an 82% increase from the previous year. The subsidy budget for electric passenger cars remains unchanged from last year at 780 billion won, while the budget for electric trucks has actually decreased to 358.37 billion won. A new conversion support fund of 177.5 billion won has been allocated to provide up to 1 million won per vehicle when switching from internal combustion engine vehicles to electric vehicles.

"Subsidies Up 82% This Year" Electric Van Market Heats Up... Staria EV Set for Launch

The government's decision to significantly increase the budget for electric vans appears to be driven by the anticipated market launch of new electric van models such as the Staria EV this year. In particular, the main focus of this subsidy expansion is on small electric vans, specifically vehicles with a seating capacity of 11 to 15 passengers and a length of less than 7 meters.

This policy shift is also linked to the recent stagnation in domestic electric vehicle demand. Although electric vehicle sales increased in 2025 compared to the previous year, experts point out that additional demand drivers are needed to achieve the government's 2035 Nationally Determined Contribution (NDC) greenhouse gas reduction target.

Accordingly, the government appears to have adopted a strategy to support the expansion of electric vehicle adoption by actively supporting new market segments. The plan is to foster new vehicle classes, such as small electric vans and medium- and large-sized electric trucks, which have so far been absent from the market, thereby broadening the foundation for adoption. A ministry official stated, "For vehicles scheduled for release in 2026, we reviewed the appropriate level of support through consultations with industry, experts, and relevant agencies," adding, "We will establish timely subsidy criteria to support the creation of new markets."

The government’s decision to substantially increase subsidies for electric vans is also interpreted as an efficient measure for carbon reduction, given that these vehicles can transport a large number of people at once. The expansion of electric van adoption is seen as not only a way to grow the market but also as a practical means of reducing greenhouse gas emissions.

Small electric vans are eligible for subsidies of up to 15 million won per vehicle. If classified as an electric van for transporting children to and from school, the subsidy can reach up to 30 million won for small models. With additional local government subsidies, the actual purchase price is expected to be even lower.

The Hyundai Staria EV, scheduled for release this year, is expected to debut as one of the largest domestic electric vehicles. Hyundai Motor Company plans to unveil the Staria EV for the first time at the Brussels Motor Show, which will be held in Belgium starting January 9.

Previously, last year, some local governments were spotted conducting road pilot tests of the Staria EV for the purpose of operating mobility services for transportation-vulnerable groups, drawing attention on online communities. The government is also believed to have significantly increased the proportion of electric van subsidies after comprehensively considering both the potential for public use and the carbon reduction effect.