The Korean national government is working to ensure that electric vehicles are accessible to the everyday consumer through several policies that will help with the prices of electric cars in Korea down significantly. The country recently announced a move to remove subsidies for electric car brands expensive in the country. This policy affects cars that are more than 90 million won. The most affected brand is Tesla, whose pricing in the country tops to a range of 100 million, especially for its Model X and Model S variants. Such a move places Tesla in a negotiating position to reduce its prices to meet the subsidies quarter that the government raised.

The ministry reported that it had allocated 1 billion won to facilitate its electric vehicle subsidy for 2021. According to an outline for the assistance, the government plans to roll out specified ranges of price reductions according to the vehicle’s level and price. The breakdown shows that cars sold at a higher price today will have fewer subsidies than lower-priced vehicles. Vehicles what is 50 million won will receive the full amount subsidies while cars between 60 million won and 90 million won will get allocations for half the subsidy amount and vehicles above 90 million one will not get any subsidy location.

Fortunately, the Korean market has a limited number of entries for + 90000001 range for electric vehicles, including the Portia Tycoon with 145 5.6 million come out of Tesla’s Model X sold for 115.99 Audi’s e-Tron coming at 114.92 million. Additional entries in this class include the Jaguar I pace offered for 10.4 million. The Tesla Model S goes for 103.13 million similar entries and consists of the Mercedes-Benz EQC that goes for 95.5 million won.

With the previous subsidy policy in effect, all-electric vehicle models received subventions in price that included a 7.36 million subsidy for the Model S while Audi’s e-Tron received 6.28 million off the Mercedes EQC scored a 6.3 million subsidy in 2020. In 2021 these vehicles will not receive the subsidy unless the affiliated companies reduce the prices significantly below the 90 million won mark.

However, experts relate that the move might support locally made electric vehicles from companies like Hyundai and Kia, whose price offerings come less than 50 million won on average. Implementing the policy will widen the price difference between the two sets of cars making locally made vehicles more accessible.

By Adam