Electric Vehicles - South Korea | Statista Market Forecast

In 2024, the projected revenue in the Electric Vehicles market in South Korea is estimated to reach US$7.9bn.
Looking ahead, the market is expected to demonstrate a steady annual growth rate (CAGR 2024-2029) of 5.49%, resulting in a projected market volume of US$10.4bn by 2029.
It is anticipated that Electric Vehicles market unit sales will reach 174.30k vehicles in 2029.
The volume weighted average price of Electric Vehicles market in South Korea is expected to be US$60.4k in 2024.
On an international scale, it is evident that China will generate the highest revenue in the Electric Vehicles market, amounting to US$376bn in 2024.
South Korea is experiencing a surge in electric vehicle sales, driven by government incentives and a growing awareness of environmental issues.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in South Korea has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Electric Vehicles market in South Korea is the increasing customer preference for environmentally friendly transportation options. With growing concerns about climate change and air pollution, more and more consumers are looking for alternatives to traditional gasoline-powered vehicles. Electric vehicles offer a cleaner and greener mode of transportation, reducing carbon emissions and improving air quality. Additionally, electric vehicles are often perceived as more technologically advanced and innovative, attracting consumers who value cutting-edge technology.

Trends in the market: The South Korean government has been actively promoting the adoption of electric vehicles through various incentives and policies. One of the key initiatives is the introduction of subsidies and tax benefits for electric vehicle buyers. These incentives make electric vehicles more affordable and accessible to a wider range of consumers. Furthermore, the government has been investing in the development of charging infrastructure across the country, making it easier for electric vehicle owners to charge their vehicles conveniently. This infrastructure expansion has helped alleviate concerns about range anxiety, a common barrier to electric vehicle adoption.

Local special circumstances: South Korea is home to several major automotive manufacturers, including Hyundai and Kia. These companies have been at the forefront of electric vehicle development and have launched a range of electric vehicle models in the market. The presence of these domestic manufacturers has not only contributed to the growth of the electric vehicle market but has also instilled a sense of national pride and support for locally produced electric vehicles.

Underlying macroeconomic factors: South Korea has a strong economy and a high level of technological advancement. This provides a favorable environment for the growth of the electric vehicle market. Additionally, the government's focus on reducing greenhouse gas emissions and promoting sustainable development aligns with the global trend towards electric vehicles. South Korea's commitment to clean energy and environmental sustainability further supports the growth of the electric vehicle market. In conclusion, the Electric Vehicles market in South Korea is experiencing significant growth due to increasing customer preferences for environmentally friendly transportation options, government incentives and policies, the presence of domestic automotive manufacturers, and the country's strong economy and technological advancement.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.