With over 4,000 Model 3 deliveries in the last quarter, it is no secret that Tesla is dominating Korea’s EV market. Now, the California-based company is running into some problems in Korea with the Korean government considering increasing the price threshold for EV incentives potentially disqualifying Tesla.
In addition to the 4,000 delivered EVs, Tesla claims it still has a backlog of 4,000 to 5,000 Model 3 orders. Strong demands that EV incentives certainly play a role in.
With the strong demand for its electric cars, Tesla reportedly accounted for almost half of the $200 million in incentives Korea issued. Now, the government is reportedly rethinking its strategy when it comes to EV incentives to avoid this problem in the future. Via the Korea Herald “The Ministry of Environment is poised to revise the current calculation system for EV subsidies by October after discussions with municipalities, related experts and concerning associations. High-end EV brands are expected to be removed after consultations, as Tesla alone devoured 43% of total 209.2 billion won ($176 million) of subsidies in the first half of this year.”
The ministry, along with Kia, Hyundai, and 9 other automakers will hold a meeting to discuss the issue today.