S.Korean hybrid car market surpasses $4.56 bn in H1 2023

South Korea's hybrid car market has shown a remarkable surge, reaching 6.12 trillion won ($4.56 billion) in the first half of 2023, according to the Ministry of Land, Infrastructure, and Transport.

The figures represent a 53.1% increase over the same period last year, nearly reaching half the size of the internal combustion engine car market.

The report, submitted to the National Assembly on August 20, highlights the continuous growth of the hybrid car market, which has nearly doubled since the first half of 2021.

It rose from 3.16 trillion won in the first half of 2021 to 4.24 trillion won in the second half of 2022, showcasing the technology's rapid adoption.

Moreover, the market share of hybrid cars compared to traditional combustion engine vehicles has seen a significant uptick. Hybrids accounted for only 19% of the car market in the first half of 2021, but their share has soared to 43% in the same period this year.

Demand for hybrids is clearly on the rise, and prices have followed suit. The average price for a hybrid car, which was 27.39 million won in January 2021, escalated to 34.45 million won last month.

On the flip side, the electric vehicle (EV) market, which had been in a consistent growth pattern, shows signs of stalling.

The market size for EVs in the first half of 2023 was 2.28 trillion won, marking a slight decline compared to the second half of 2022, which recorded 2.34 trillion won.

The average price of electric cars has been steadily on the rise. It rose from 19.82 million won in the first half of 2021 to 28.70 million won in the second half, and 32.02 million won in the first half of 2022.

It rose to 44.24 million won in the first half of this year.

Write to Sungsu Bae at baebae@hankyung.com