The adoption of electric vehicles (EVs) in Incheon, South Korea’s third-largest city, has been declining for two consecutive years after peaking in 2022. (Image courtesy of Yonhap)
INCHEON, Aug. 12 (Korea Bizwire) – The adoption of electric vehicles (EVs) in Incheon, South Korea’s third-largest city, has been declining for two consecutive years after peaking in 2022, according to recent data from the city government.
From January to July of this year, only 2,607 new EVs were registered in Incheon, a mere 37% of the total 6,953 vehicles added in all of last year. This year’s registrations comprise 2,197 passenger cars (84.3%), 404 cargo vehicles (15.5%), and six buses (0.2%).
The slowdown has forced city officials to revise their initial projections. The city had originally budgeted 91.7 billion won in subsidies for EV purchases this year, anticipating 14,939 new registrations. However, faced with lower-than-expected demand, Incheon slashed this budget by 37.7 billion won in a June supplementary budget.
The downward trend is stark when compared to previous years. EV registrations in Incheon rose from 2,430 in 2020 to 5,667 in 2021, reaching a peak of 11,900 in 2022 before declining to 6,953 in 2023.
City officials attribute this deceleration to several factors, including higher upfront costs compared to conventional vehicles, decreasing government subsidies, charging inconveniences, and emerging safety concerns.
The disparity in subsidies between EVs and hydrogen fuel cell vehicles is notable. While EV buyers can receive up to 10.06 million won per passenger car, hydrogen vehicle purchasers are eligible for subsidies of up to 32.5 million won.
As of June, Incheon had 46,697 registered EVs, accounting for 2.7% of the city’s 1.74 million vehicles. The city has installed 19,573 charging stations, including 1,486 rapid chargers, resulting in a ratio of one charger per 2.4 EVs.
An Incheon city official stated, “The recent slowdown in EV growth is a national trend. We saw a surge of purchases around 2022, followed by a decline due to various factors.” The official added that the city plans to assess charging infrastructure in apartment complexes, aligning with the central government’s efforts to address EV fire safety concerns.
Kevin Lee (kevinlee@koreabizwire.com)
