Electric vehicle (EV) sales in South Korea rose 37 percent in January-May from a year earlier, as government subsidies and new models boosted demand.
Electric vehicle sales jumped to 22,142, up more than 6,000 from the same period in 2018, according to the Korea Automobile Manufacturers Association. Imported brands had the largest percentage increase of more than five times, but amounted to only 521 items. Domestic electric vehicle sales grew 35 percent to 21,621.
The South Korean government has offered the world's highest subsidies to electric vehicle makers while abandoning sales incentives for hybrid vehicles. This year's national budget provides subsidy funding for an average of nearly 10.9 million won (about US $ 9,200) for 42,000 vehicles. Some regional governments offer additional incentives, and EV drivers have insurance and parking benefits.
South Korean carmakers are keen on boosting EV export sales, so EV exports rose 243 percent in April to 5,017.
South Korea's budget funding for subsidies will be exhausted in October and new EV models will be released later by the end of the year, which could accelerate sales. Sales of conventional fueled vehicles in South Korea in January-May exceeded last year's figures by about 7 percent, to more than 547,000 units.
