The domestic production and sales of electric buses have been on an upward trajectory. (Image courtesy of Yonhap)
SEOUL, May 1 (Korea Bizwire) – As the global electric vehicle (EV) market’s growth decelerates, South Korea’s electric passenger car sales have dipped this year.
However, the domestic production and sales of electric buses have been on an upward trajectory, according to data from the Ministry of Land, Infrastructure and Transport and the Korea Automobile Manufacturers Association (KAMA).
In the first quarter of 2023 (January to March), 461 new electric buses were registered in South Korea, a 33.2% increase compared to the same period last year when 346 units were registered.
The annual registration figures for electric buses in the country have been rising steadily. While only 98 units were registered in 2017, when separate statistics for domestic and imported electric buses became available, the numbers have grown by hundreds annually, surpassing 1,000 units for the first time in 2021 with 1,271 registrations.
This upward trend continued with 2,075 registrations in 2022 and 2,815 in 2023.
Despite this growth, Chinese-made electric buses still account for over 40% of the market share in South Korea.
In the first quarter of 2024, 262 out of the 461 newly registered electric buses, or 56.8%, were manufactured by domestic companies such as Hyundai Motor, Woojin Industrial Systems, and KGM Commercial (formerly Edison Motors).
The remaining 43.2% (199 units) were imported from China, meaning more than four out of every 10 electric buses registered in South Korea this year were Chinese-made.
On an annual basis, the market share of Chinese electric buses in new registrations reached 41.8% in 2022 and a staggering 54.1% in 2023.
This dominance is attributed to the price competitiveness of Chinese electric buses, which often feature larger and relatively cheaper batteries, as well as policies that promote the adoption of electric buses in regions outside of Seoul.
Hyundai Motor, a major domestic EV manufacturer, has also steadily increased its electric bus production.
According to the KAMA, Hyundai produced 159 electric buses in the first quarter of 2024, a 9.7% increase from the same period last year (145 units).
While Hyundai’s first-quarter electric bus production was just 21 units in 2020, it crossed the 100-unit mark for the first time in 2021 with 102 units.
On an annual basis, Hyundai’s electric bus production grew from 383 units in 2020 to 424 in 2021, 697 in 2022, and 959 units in 2023.
Hyundai Motor, Woojin Industrial Systems, and KGM Commercial are the only companies currently producing electric buses in South Korea, with statistics from the KAMA solely reflecting Hyundai’s production figures.
Kevin Lee (kevinlee@koreabizwire.com)
