SEOUL, Aug. 9 (Yonhap) — The Ministry of Trade, Industry and Energy of South Korea has declared that it will take proactive steps to address France’s new subsidy policy for electric vehicles (EVs). This is due to worries that the policy may have a negative impact on automobile exports.
The new system, which will start in January 2024 with a six-month grace period, will involve a score system that evaluates the carbon footprint of the manufacturing process of EVs. The French government will provide subsidies to EVs that meet the required environmental score, while those with a large carbon footprint will not be eligible for the benefits.
The ministry stated that it is currently analyzing the policy’s implications for South Korean companies with the help of related parties and will submit the government’s stance to France. South Korea is the fifth-largest player in the French EV market, with Hyundai Motor Co. and Kia Corp. selling a total of 16,570 units last year.
The ministry added that it will continue to communicate with the French government in order to make its opinion known in the final version of the scheme.