South Korea announces EV incentives

South Korea’s Yonhap News Agency reported that the Korean government will offer tax incentives of up to 4.2 million won (US$3,654) to buyers of electric vehicles (EV). The incentive scheme will be implemented on December 1 and will give buyers of new electric vehicles a 5% discount from Korea’s special consumption tax and a 7% purchase and registration tax exemptions. The incentives will be less than the 6 million won (US$5,220) planned earlier by the government. In a news release, the South Korean Ministry of Knowledge Economy said, “The government will continue to revise and expand its tax incentives and the scope of electric vehicles subject to the tax breaks to help promote electric cars.” So far, the South Korean market does not feature compact EVs, although GM has already developed at GM Daewoo the electric Chevrolet Spark. Hyundai is set to launch in early 2012 its BlueOn, and according to reports, an industry-led consortium is developing a medium-sized battery-electric commercial vehicle which will be launched in 2014. The Korean government also announced its standard formats which will measure the fuel efficiency of electric vehicles and requires manufacturers to specify the car’s maximum speed and maximum distance of travel for every full charge. (October 14, 2011)