South Korea to phase out ICE vehicles by 2035
South Korea’s President-elect Yoon Suk-yeol has reconfirmed previous government plans to phase out sales of new internal combustion engine (ICE) vehicles by 2035, according to local reports.
The local auto industry had been pushing for an extension of that deadline to 2040, arguing that manufacturers and component suppliers needed more time to adjust to the full transition to zero-emission vehicles.
Automakers have argued that with electric vehicle (EV) sales still limited in the country, it would take time for the industry to grow before it could phase out ICE vehicles altogether.
Last year, electric vehicle sales in South Korea reached 100,439 units, or 5.8% of total registrations, making it Asia’s second-largest market for zero-emission vehicles after China. .
The auto industry has claimed that achieving 100% market penetration in just 13 years would be a major challenge, especially as the government wanted to cut subsidies for electric vehicles, which would prevent prices from falling anytime soon.
However, continuing to subsidize EV sales beyond a certain level of market penetration would become an unsustainable burden on taxpayers.