South Korea is one of the world’s largest car markets, which makes it a good consumer for Tesla’s Model S and Model X. The country also stands number 6 in terms of the reservations for Tesla’s Model 3.
South Korea promotes electric cars by giving a subsidy equivalent to approximately $18,000 dollars on buying cars that can be recharged in 10 hours or less using 220 volt household current. It was to encourage manufacturers to target less charging time. However, the car industry could not achieve it as a matter of fact.
The government says it may be a time for his country to revisit that rule. A ministry official tells Reuters that an appointed panel will submit recommendations either to keep the rule or amend it.
Various opposition leaders and lawmakers have been raising questions on the effectiveness of this rule. Lee Sang-don, an opposition lawmaker, called it as “unreasonable non-tariff barrier” that obstructs drivers in considering long range EVs.
Kim Pil-soo, president of the Korean Electric Vehicle Association, told Reuters. “We have kept telling the government they should remove it.”
Tesla Vice President of North Asia told media that the company is urging the government to amend the rule. On the other hand, it is trying to strengthen its roots in the Korean market. It is about to open its first showroom in the upscale Starfield shopping district east of Seoul, which is delay due to some permit issues.
Tesla has been receiving orders for Model S and X, and reservations for the Model 3. With the current rule in place, it is difficult to hold a strong foot in the Korean market, as the Model S 90D takes more than 10 hours recharging time, which disqualifies it for the incentive of the subsidy.
China too has delayed its plans to market its e6, unless the rule is changed.
Consequently, only 4,000 EVs could be registered in the entire country.
Korea’s current target is to minimise the charging time for Evs, so of the Tesla, which is improving and increasing its capability of developing and establishing of Superchargers. This development can make Korea as the most ‘hot’ market for Tesla’s new brands of cars. Currently, it is planning to construct Supercharger locations in Seoul, Busan and Pyeongchang.