Tesla success in South Korea causes subsidy review
The successful sales of Tesla in South Korea could lead to a withdrawal of the state premiums there. After Tesla vehicles benefited from 43 per cent of all subsidies paid out in the first half of 2020, the South Korean Ministry of the Environment has now announced changes.
The revision of the subsidy program for electric cars will be implemented by October 2020. Higher-priced models such as Tesla’s could be excluded from the subsidies in the future, as the company alone managed to soak up $176 million of subsidy funding. This of course does not help local industry, which was presumably one of the goals of the premiums.
In the next step, government representatives will meet with 11 automobile manufacturers, and figure out how to best support the green industry and environment: “For our ‘Green New Deal’ initiative to yield results, it’s crucial for EVs to be deployed without any setback. The ministry will consult and collaborate closely with related businesses and groups in the industry,” said Choi Jong-won, head of Air Quality Policy Bureau.
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