The Ministry of Trade, Industry and Energy (MOTIE) is not the only Korean ministry who want to push the electrification of transportation.
The Ministry of Environment (ME) of Korea has recently signed an agreement with two car makers and five logistics players to accelerate the adaptation of electric trucks and retirement of diesel trucks. The signatories include two car manufacturers under Hyundai Motor Group Hyundai & Kia Motors as well as CJ Logistics, Hanjin, Lotte Global Logistics, DHL Korea, and Hyundai Glovis.
The agreement stipulates each signatory’s role in the initiative to enhance the penetration of EV trucks in Korea’s logistics network. ME will provide grants to electric truck buyers, building recharging infrastructure as well. Hyundai & Kia Motors will introduce a variety of electric truck models in the market, also ensuring the market to be supplied enough with such trucks. Logistics companies pledged to preferentially purchase electric trucks, as well as replacing existing diesel fleets with electric units.
ME estimated the ‘accelerated transition’ to electric trucks will newly introduce around 8,200 electric one-ton trucks in the logistics industry as a whole. The five logistics signatories of the latest agreement might buy around 2,800 units, according to the estimation.
ME is also planning to install fast chargers in logistics hubs. In the second half, ME will introduce ‘Mid-Long Term Strategy for the Transition of Delivery Trucks” with the cooperation of the industry. The strategy will presents transition targets in phase, a detailed transition plan, and government aid programs.
The signing has happened in a time when Hyundai is rigorously revealing the electric versions of its bestselling trucks. The group showcased ‘Porter II EV’ in December 2019 and Bongo III EV in January 2020. With new models coming out, the number of electric trucks in the Korean market is also soaring, from only three in Q1 2019 to 2,890 units in Q1 2020.