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Is surge in EV interest a longterm shift, or just passing trend driven by gas prices?

Published: 12 Mar. 2026, 11:22 Updated: 12 Mar. 2026, 12:32

A man charges a Tesla vehicle using Chaevi’s “Supersonic” electric vehicle charger on Feb. 20. [CHAEVI]

As fuel costs rise amid fears of an oil shock, demand is increasing in Korea for EVs and other low-emission cars. Some industry observers say electric vehicle sales could reach a record high this year if high oil prices persist.

A total of 41,000 new electric vehicles were put on the road from the start of the year through the end of February, according to the Ministry of Climate, Energy and Environment on Wednesday. That was 2.6 times the 16,000 recorded during the same period in 2025.

Some local governments, including Daejeon, have already exhausted their first-half subsidy allocations. In Cheongju, North Chungcheong, applications for subsidies closed on Feb. 9, just 11 days after the notice was posted.

“The first-half subsidies had been exhausted and an additional round is set to be announced in July,” said a local government official, adding that the volume of phone inquiries had become difficult to handle.

Korea’s electric vehicle market went through a prolonged demand slowdown in 2023 and 2024, when sales declined for two consecutive years. But the market rebounded in 2025, when annual supply reached a record 220,000 units. Sales this year are already running ahead of last year’s pace since the start of the year.

[MINISTRY OF CLIMATE, ENERGY AND ENVIRONMENT]

The ministry’s 2026 subsidy guidelines introduced a new transition subsidy of up to 1 million won ($680) for buyers who sell or scrap an internal combustion vehicle and switch to an electric one.

Industry sales data showed that domestic EV sales in February reached 35,766 units, topping hybrid sales of 29,112 for the first time since October 2022.

The rise reflects expanded incentives, including the new transition subsidy, as well as new model launches and discount competition among automakers. It has also been fueled by a jump in gasoline and diesel prices skyrocketing toward 2,000 won per liter ($5.13 per gallon) as the war involving the United States, Israel and Iran pushed global oil prices sharply higher.

A driver refuels their vehicle at a gas station at the Mannam Square rest area along the Gyeongbu Expressway in Seocho District, southern Seoul, on Mar. 11. [NEWS1]

As fuel prices climb, the gap in running costs between electric and internal combustion vehicles is bound to widen.

“About 6,000 EVs had already been supplied by Thursday,” a ministry official said. “Subsidies are being executed quickly, and because quite a few local governments have already used up their first-round allocations for the first half of the year, we are considering moving up the timing of the second round.”

Experts explained that if high oil prices continue, electric vehicle sales this year could surpass 2025 and reach an all-time high.

At the same time, they cautioned that there are still too many variables to conclude that the market has fully moved past the slowdown and entered a lasting shift toward EVs.

“Higher oil prices are clearly helping to boost preference for EVs in the short term,” said Kim Pil-su, president of the Korea Electric Vehicle Association and a professor at Daelim University. “But charging is still inconvenient, and incentives are gradually shrinking, so it is hard to say the market has completely overcome the slowdown.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY CHON KWON-PIL [[email protected]]