Hyundai today unveiled the BlueOn, the first pure electric, full-speed vehicle for the South Korean market.
The South Korean government hopes the country will have 1 million electric cars by 2020.
Hyundai Motor, which has invested 40 billion won ($36.8m) in the past year developing an electric car powered by a lithium-ion polymer battery, will expand output capacity next year to produce the BlueOn, the company said in a written statement.
The South Korean government is encouraging the development of a mass produced electric-vehicles industry in the hope that production of small electric cars can begin in 2011 - two years earlier than originally planned - and medium-size electric cars in 2014.
“As major governments in the US, Japan, Germany and China are aggressively adopting plans to provide electric vehicles, we also recognised going to electric vehicles is not an option but a ‘must’ for the automobile industry,” an official at the Ministry of Knowledge Economy said.
The government hopes that by 2020, 20 per cent of passenger cars in South Korea will be solely electric. Subsidies and tax incentives to promote sales of electric vehicles will be offered once the vehicles begin rolling off production lines.
“Consumers’ interest in and demand for user-friendly cars are rising, and securing such advanced technology is critical in becoming an industry leader,” said Lee Hyun-soon, vice-chairman at Hyundai Motor’s corporate research and development centre.
Hyundai Motor said it will produce 2500 BlueOn vehicles for the domestic market by the end of 2012. The BlueOn is based on Hyundai’s i10, a small hatchback.
SK Energy will be the initial supplier of lithium-ion batteries for the BlueOn, the car-maker said.
One drawback already identified with the lithium-ion batteries is the seven-hour recharge time and the relatively high cost of the unit, which is fixed in the car’s engine.
The government said it will conduct a feasibility study on whether a new type of battery system can be developed so an electric car comes with two batteries, one of which can be recharging while the other powers the vehicle. The government’s study into so called exchange batteries will be carried out in the first half of 2011.
If the study finds high enough demand for battery-exchangeable vehicles, it will assist in the development of the cars starting in 2012, the ministry said.
“To be a success in the market, electric cars should carry a reasonable price tag and most of all there should be recharging infrastructure for electric cars,” the ministry official said.
