Carbon regulation – urea avalanche – supply of eco-friendly vehicles due to rising oil prices, faster than expected
‘Golden Cross’ has appeared one after another across Europe… Hyundai Motor “Electric Vehicles with 7 or More New Cars Next Year”
Accelerating global ‘end of internal combustion locomotive’
The increase in the number of registered eco-friendly vehicles such as electric vehicles, hydrogen electric vehicles and hybrid vehicles in Korea this year surpassed that of internal combustion locomotives such as gasoline vehicles, diesel vehicles and liquefied petroleum gas (LPG) vehicles for the first time in Korea.
While electric, hydrogen, and hybrid cars increased by 270,000 from January to October of this year, internal combustion cars only increased by 160,000, making a ‘golden cross’ in which the spread of eco-friendly cars surpassed that of internal combustion locomotives. The supply of eco-friendly vehicles is spreading faster than expected as global carbon regulations are strengthened, the number of urea for vehicles, and oil prices are overlapping.
According to the vehicle registration statistics of the Ministry of Land, Infrastructure and Transport on the 16th, the cumulative number of eco-friendly vehicle registrations until last month was 1,095,000, an increase of 275,000 from the end of last year (820,000). This is 110,000 more than the increase of eco-friendly cars (165,000 units) between January and October last year. Internal combustion locomotives, which had a net increase of 400,000 units during the same period last year, decreased by 60% this year (160,000 units). From January to October of this year, domestic sales of Hyundai Motor and Kia decreased 6.5% compared to the same period of the previous year, but sales of eco-friendly vehicles (183,000 units) increased by 45.7%.
By car type, diesel cars that suffered measles due to the recent urea water crisis decreased the most. At the end of last year, there were 9992,000 diesel vehicles, but in October, the number decreased by more than 100,000 to 9,888,000. The government and local governments have started to support the scrapping of old diesel vehicles to reduce fine dust, and the popularity of hybrids has increased as sports utility vehicles (SUVs), which were the mainstay of diesel vehicles.
Hyundai Motor Company has strengthened its hybrid lineup by introducing a new Santa Fe Hybrid and Kia Sportage Hybrid. Domestic sales of Hyundai-Kia hybrid cars (118,203 units) from January to October this year increased by 20.7% compared to the same period of the previous year.
Gasoline growth also slowed. Gasoline cars increased by 292,000 units from the end of last year, but 90,000 less than the increase during the same period last year (382,000 units).
The growth of electric and hybrid cars is accelerating thanks to the government’s eco-friendly policies and the effect of new car launches. The increase in electric vehicles from January to October this year (77,000 units) is more than double that of the same period last year (38,000 units). Hybrid cars increased by 191,000 units, exceeding the annual increase last year (168,000 units).
This golden cross is also taking place overseas. The increase in the market share of eco-friendly car sales, which appeared in parts of northern Europe, such as Norway and Sweden, which are active in electric vehicles, has recently been spreading throughout Europe. According to the European Automobile Manufacturers Association (ACEA), the share of diesel cars in the European car sales market in the third quarter (July-September) was 17.6%, a sharp decrease from last year (27.8%), while hybrids surpassed diesel cars at 20.7% for the first time. Electric vehicles (9.8%) are approaching 10%.
In the United States, the epicenter of the Tesla craze, new car sales fell 13.4% in the third quarter due to a supply shortage of semiconductors, but sales of eco-friendly cars increased 63.1%.
The eco-friendly car craze is expected to accelerate further next year. Manufacturers with the goal of ending internal combustion locomotives in accordance with carbon-neutral policies are pouring out electric vehicle models in earnest, and it is expected that the exit speed of diesel vehicles, which has recently suffered a shortage of urea, will be accelerated.
Hyundai Motor Group is expected to fill more than seven of its 10 new cars to be introduced next year with electric vehicles. This is the first time that the company has introduced more new electric vehicles than internal combustion engine vehicles. The government is considering reducing the subsidy for LPG trucks and injecting them into electric truck expansion projects.
Reporter Dongjin Shin [email protected]