South Korea's EV ‘Phobia’ Sparks Steep Price Cuts Amid Safety Concerns

In response to growing fears over electric vehicle safety, South Korean automakers are introducing steep price cuts, while the government convenes to address these concerns.

Steep Discounts Offered by Automakers in South Korea

After an electric Mercedes-Benz caught fire in South Korea, buyers apparently became terrified of electric vehicles (EVs). Automakers are slashing prices to entice new car buyers, while the government has set an emergency conference to discuss EV safety, Teslarati reports.

For first-time customers, dealerships selling foreign-brand vehicles intend to slash prices by about 30%. At least a 20% discount will be offered on about 30 vehicles from foreign brands. Approximately 73% of the discounted automobiles are electric vehicles, according to Getcha.

Foreign Automakers React to EV Safety Fears

Some of the foreign brands that are scheduled to start lowering their vehicle prices this month are Audi, Volkswagen, Mercedes-Benz, and BMW.

Sales on e-tron models are rolling out at Audi. The e-tron 55 quarto, e-tron S quarto, and Q8 e-tron Sportback, all manufactured by Audi AG, will be available at a discounted price of 29.5% off the MSRP. The Audi RS e-tron GT, meanwhile, will be discounted by 24.5%.

The i7 xDrive60 and iX XDrive50 are both being discounted by about 12%+ by BMW. A 10% discount is available on the EQE EV from Mercedes-Benz, while a 23% discount is available on the ID.4 from Volkswagen.

“Imported vehicles usually get higher discounts near the end of the year. But this time, foreign brand dealers are unusually offering sharper discounts even in the summer. Probably, they were influenced by the weakening consumer sentiment toward EVs following the Mercedes blaze,” an imported vehicle dealer told KED Global.

Government Responds to EV Safety Concerns

Damage from a fire in an underground parking lot was substantial last week, including an electric Mercedes-Benz. The Environmental Ministry of South Korea called an emergency conference to address the issue of EV fire safety following the fire.

South Korea's government was considering making EV manufacturers reveal which battery brands they use during the conference. The battery brands used by Hyundai and Kia electric vehicles have already been announced by Hyundai Motor Group. ​