'Electric vehicles are the next battleground for potential growth rate rebound'

Autonomous driving technology, core parts R&D to be expanded

Industry calls for future vehicle transition support, battery lease scheme

The government plans to announce an electric vehicle industry competitiveness package this month, covering measures to advance autonomous driving technology and expand research and development of core components and technologies.

Deputy Prime Minister and Ministry of Economy and Finance Minister Lee Hyung-il visited the Hyundai Motor and Kia technology research center in Hwaseong, Gyeonggi Province, on Monday, where he held an industry roundtable on strengthening the competitiveness of the EV sector.

Deputy Prime Minister and Ministry of Economy and Finance Minister Lee Hyung-il [Yonhap]
Deputy Prime Minister and Ministry of Economy and Finance Minister Lee Hyung-il [Yonhap]

"The next battleground for a rebound in potential growth rate is electric vehicles," Lee said. "Companies must achieve technology capabilities on par with global leaders within the next two to three years to survive, making swift adaptation and technological innovation by our firms more urgent than ever."

The roundtable was organized to review the current state of EV industry development and autonomous vehicle technology, and to hear about challenges facing companies and areas where government support is needed. Executives from Hyundai Motor and other EV, autonomous vehicle and parts industry firms attended, along with vice ministers from related ministries.

Before the roundtable, Lee inspected autonomous driving test vehicles set to be deployed this month in Gwangju's autonomous driving demonstration city and reviewed the status of vehicle production and technology development. The city is scheduled to receive up to 200 electric-based autonomous test vehicles by the end of this year, with the cumulative total rising to 3,000 next year.

Lee also heard briefings on next-generation EV and autonomous vehicle development plans from Hyundai Motor and other domestic companies.

At the roundtable, industry representatives said swift government support was needed as global competition intensifies. They particularly called for production tax credits for electric vehicles and expanded assistance for parts makers transitioning to future mobility. They also requested that a legal framework be established for introducing a battery lease system and that dedicated autonomous vehicle agencies be given more specialist staff.

In response, Lee said the government would work alongside companies with full commitment, and pledged to closely review industry requests with related ministries and move quickly to address them. On EV production tax credits, he said the government would actively participate in National Assembly deliberations and engage in in-depth discussions.

The government plans to incorporate the industry opinions raised at Monday's roundtable into its electric vehicle industry competitiveness package.


y2k@heraldcorp.com