In an impressive feat, South Korea’s hybrid car market has surged to a substantial 6.12 trillion won (equivalent to $4.56 billion) during the initial half of 2023. This remarkable growth, as reported by the Ministry of Land, Infrastructure, and Transport, signifies a substantial 53.1% increase compared to the same period the previous year. This surge brings the hybrid market to nearly half the size of the internal combustion engine car market.
An official report, submitted to the National Assembly on August 20, underscores the persistent expansion of the hybrid car market, which has nearly doubled in size since the first half of 2021. Starting from 3.16 trillion won during H1 2021, the market reached an impressive 4.24 trillion won in H2 2022, showcasing the rapid adoption of hybrid technology.
Furthermore, the market share of hybrid vehicles in comparison to traditional combustion engine cars has shown a substantial uptick. While hybrids constituted a mere 19% of the car market during H1 2021, their share has surged to an impressive 43% in the corresponding period of this year. The evident increase in demand for hybrids has resulted in a corresponding rise in prices. The average cost of a hybrid car, which stood at 27.39 million won in January 2021, has climbed to 34.45 million won as of the previous month.
Conversely, the electric vehicle (EV) market, which had been experiencing consistent growth, is now displaying signs of a slowdown. The EV market size for H1 2023 was 2.28 trillion won, indicating a slight decline compared to the second half of 2022, which registered 2.34 trillion won.
The average price of electric cars has been on an upward trajectory. Starting at 19.82 million won in H1 2021, it escalated to 28.70 million won in H2 2021, and further to 32.02 million won in H1 2022. The latest data reveals a rise to 44.24 million won in the first half of this year.