EV market expected to zoom in 2026 with influx of new models

Korea’s EV market is expected to hit its most competitive year yet in 2026, with local and overseas automakers planning to launch up to 30 new models — nearly double the number released this year of 16.

The Genesis GV90 concept car. The vehicle features suicide doors, a design expected to be offered as an option on the production model. [GENESIS]

Korea’s EV market is expected to hit its most competitive year yet in 2026, with local and overseas automakers planning to launch up to 30 new models — nearly double the number released this year of 16. Fifteen new EV models are confirmed for release next year, including the Kia EV3, EV4 and EV5 GT, Genesis GV90, BMW iX3 and Polestar 5, according to industry sources on Monday. With additional models undergoing certification or under consideration, the final tally may reach as high as 30.

The surge in new releases comes as EV sales in Korea rebound sharply. From Jan. 1 to Nov. 13, a total of 200,650 EVs were newly registered, up 36.6 percent from 146,902 in the same period last year, according to the Ministry of Climate, Energy and Environment.

Visitors look at a BYD Dolphin Mini at the launch event of Chinese EV maker BYD in Buenos Aires, Argentina, Oct. 8. [REUTERS/YONHAP]

EV sales stagnated in 2022 and 2023 at 164,486 units and 162,606 units, respectively — leading to talk of a “chasm,” or temporary demand plateau. But the market rebounded this year, and for the first time since mass EV sales began in 2016, annual registrations surpassed 200,000.

Kwon Yong-joo, a professor of automotive transport design at Kookmin University, attributed the increase to the earlier-than-usual rollout of EV subsidies and the release of several new models.

“With improved vehicle performance easing consumer concerns about driving range, sales are likely to remain strong next year,” he said.

Fierce competition is expected in the budget EV segment, particularly for models priced between 30 million and 40 million won ($20,000 to $27,000). When subsidies are applied, their prices become comparable to similarly sized combustion engine vehicles — making them attractive to consumers looking to save on fuel and maintenance.

Chinese automaker BYD is expected to enter the market with the Dolphin, a compact EV hatchback priced just over 20 million won, likely to compete with Hyundai’s Casper Electric, which is priced in the mid-20 million won range. In response, Hyundai and Kia are expected to launch aggressive discount campaigns for their Ioniq and EV series to defend their domestic market share.

The Polestar 5 [POLESTAR]

The premium EV segment is also poised for growth, with a wave of flagship models set for release. While luxury EVs accounted for only about 10 percent of total EV sales in Korea this year, at roughly 20,000 units, they offer higher profit margins and brand value, prompting automakers to ramp up offerings.

Mercedes-Benz will unveil electric versions of its GLC and CLA models equipped with its new AI-powered operating system “MB.OS Superbrain.”

BMW plans to release the new iX3, the first mass production model built on its next-generation EV platform, “Neue Klasse.” Porsche will launch the Cayenne Electric, while Polestar will debut the Polestar 5. Genesis will join the race with its flagship EV model, the GV90, which may feature rear-hinged suicide doors.

An industry insider described the GV90 as a “bold move” and a sign of Hyundai Motor Group’s seriousness in the luxury EV space.

The government’s recent finalization of its Nationally Determined Contribution targets is also seen as a driver behind the industry's EV push. Korea aims to reduce greenhouse gas emissions by 53 to 61 percent from 2018 levels by 2035. To meet those goals, 40 percent of new car sales must be zero-emission vehicles, referring to EVs or hydrogen fuel cell vehicles, by 2030, and 70 percent by 2035.

The BMW iX3 [BMW]

Based on last year’s domestic car sales total of 1.64 million units, that would mean selling 660,000 zero-emission vehicles by 2030, and 1.15 million by 2035.

“The industry needs to gain a firm grip on the EV market well ahead of those deadlines,” one industry source said.

To support adoption, the government plans to increase the EV subsidy budget from 780 billion won this year to 936 billion won next year — a 20 percent increase. But Cho Chuel, a senior researcher at the Korea Institute for Industrial Economics & Trade, noted that the increase only applies to purchases that involve scrapping old combustion engine cars.

“For the average buyer, the subsidy remains unchanged,” he said. “Now that the demand chasm has passed, the government must expand subsidies and charging infrastructure if it hopes to meet its EV adoption targets.”

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 KIM HYO-SEONG [shin.minhee@joongang.co.kr]