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(News Focus) S. Korea set to speed up electric car production
By Lee Joon-seung
SEOUL, Oct. 8 (Yonhap) -- South Korea will speed up production of electric vehicles (EV) to meet rapid changes in automotive technologies and better position itself to secure future markets, the government said Thursday.
A master plan outlined at an economic policymakers meeting chaired by President Lee Myung-bak calls for full scale production of EVs in the second half of 2011, two years ahead of the original target date of 2013.
Such efforts have gained urgency as leading carmakers in the United States, Japan and Europe have already launched or plan to mass produce electric powered automobiles within the next few years. Japan unveiled the world's first mass produced EV, called the i-MiEV, in July with GM expected to produce similar vehicles in 2010.
Other countries have also said that they will start enforcing tougher greenhouse gas emission rules for new cars to cut back on carbon dioxide emissions that are cited for contributing to global warming. Moves by automobile manufacturers to develop greener vehicles come in the face of greater calls to preserve the environment and rising fuel prices.
"The world is currently engaged in a war to develop (new) automobiles and while it is difficult to predict the future of the industry, EVs will play an important role as the world must move to confront global warming," Lee said. Car emissions make up about one-fifth of all carbon dioxide gases released into the atmosphere.
The president told officials and business leaders gathered at the Hyundai-Kia America Technical Center that investment in this sector must be seen as part of an ongoing effort to prepare for the future and pledged government support to manufacturers.
Other officials stressed the steps announced will be implemented in tandem with ongoing efforts by local carmakers and laboratories to develop hybrid vehicles, plug-in cars and automobiles powered by advanced hydrogen fuel cells, all of which are candidates to replace conventional internal-combustion engines.
"Since there is no clear consensus even among foreign countries on what type of technology holds the greatest promise, Seoul too must explore all possibilities," Cho Seok, a deputy minister at the Ministry of Knowledge Economy, said.
He said that while new state support is not planned for EV development, companies will be able to draw R&D funds from the 400 billion won (US$341.8 million) already set aside for next generation vehicle research.
"Funds can be made available for individual projects based on market potential," he said, adding that all local and foreign companies that engage in development efforts in the country will be eligible to receive state aid.
The expert said that if all goes according to plan, South Korea should be able to capture 10 percent of the worldwide EV market by 2015, with 10 percent of all small-sized cars sold in the country to be electric-powered vehicles by 2020.
"Such production capability will allow the country to be one of the world's top four leaders in the EV manufacturing field," Cho said.
Besides offering R&D support, policymakers at the transportation and environmental ministries said administrative measures would be put in place in the near future, allowing EVs to operate under the same rules as gasoline and diesel powered vehicles.
South Korea currently bans the use of cars that rely on electricity as their only power source, citing safety reasons such as a lack of transportation standards and other administrative issues.
"Legal revisions have been sent to parliament for passage that will remove all administrative and legal obstacles to operating EVs," said an official at the Ministry of Land, Transport and Maritime Affairs.
He said detailed rules on operations for both EV and neighborhood electric vehicles (NEVs) will be established in the near future. NEVs are used mainly for short distance travel and usually have a top speed of 60km per hour.
Seoul, in addition, said that it is reviewing steps to spur sales that could include tax breaks and direct subsidies.
Japan, along with European countries and the United States all give tax benefits or financial support to consumers who purchase eco-friendly cars, while China says it will give direct subsidies.
The government will also offer incentives to public organizations that buy such vehicles and could use EVs for official purposes when South Korea hosts the G20 meeting next year.
Local carmakers that will benefit from state support, meanwhile, called on the government to do more to build the necessary infrastructure needed to permit widespread use of EVs and other eco-friendly cars.
Engineers at companies like Hyundai, Kia Motors Corp and Renault Samsung Motors said that R&D support should be concentrated in such areas as electronic control systems and the building of chasis for eco-friendly cars.
"In terms of batteries, motors and power re-chargeable systems South Korea is nearly equal to foreign leaders, but lags behind in key components and basic technology used to make such cars," industry sources said.
Technology levels in components stand at just 30 percent, while rising to 90-100 percent for batteries.
yonngong@yna.co.kr
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