UPDATED. 2024-04-22 18:10 (월)
Korean car firms call for hybrid car tax incentives from government
Korean car firms call for hybrid car tax incentives from government
  • Yang Tae Hoon
  • 승인 2021.06.04 07:23
  • 댓글 0
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Policy needed to achieve carbon neutrality, KAMA claims 
Image: Hyundai Motor
Image: Hyundai Motor

The Korea Automobile Manufacturers Association (KAMA) has called for the South Korean government to expand tax incentives for hybrid cars.

On Thursday, KAMA claimed hybrid cars had the same carbon emission rate as existing electric cars, but was more efficient when it comes to cost.

This means hybrid car was more advantageous in achieving carbon neutrality by 2050 as the government is hoping to, the association claimed.

KAMA cited data from International Energy Agency that showed hybrid cars emitted 27.5 tonnes of carbon dioxide during its life span, while an 80KW electric car emitted up to 28.2 tonnes of carbon dioxide.

Despite these findings, the government’s tax incentive for hybrid cars were only a tenths of what was provided for electric cars, KAMA said.

A single electric car could hop for up to 17.72 million won tax benefits, while a hybrid car could only hope for 1.83 million won, the association said.

KAMA asked the government to extend its individual consumption tax exemption and acquisition tax reduction of hybrid cars by three years, from December 31, 2021 to December 31, 2024. It also asked the acquisition tax reduction cap to be increased from 400,000 won to 1.4 million won. 

A KAMA spokesperson said hybrid car showed more environmentally friendly characteristics compared to electric cars when considering South Korea’s energy development mix.

This means hybrid car was the realistic solution for South Korea to achieve carbon neutrality by 2050 and needs tax incentives, they added.

Hybrid cars also use the same electric power components that will minimize risks of small- and mid-sized component suppliers and the automobile ecosystem, the spokes person said.

In 2020, around 65% of electric cars were locally made, while 87% of hybrid cars that meet the tax reduction requirement were locally made, the spokesperson said. This means support of hybrid cars will help in fostering South Korea’s automobile industry, they added.

Image: KAMA
Image: KAMA
Image: KAMA
Image: KAMA


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