South Korea’s automakers and car parts suppliers have agreed to increase investments in the development of electric and hydrogen vehicles as part of their commitment to the government’s goal of carbon neutrality by 2050.

On Wednesday, the local automaking community launched a consultative body for carbon neutrality in the automotive industry and issued a joint statement to support the state goal.

The consultative body to be headed by Korea Automobile Manufacturers Association President Jeong Man-ki will discuss carbon neutral strategies and challenges in the automotive industry as a communication channel between the government and the industry.

The launching ceremony was attended by Korea’s Trade, Industry and Energy Minister Sung Yun-mo, Hyundai Motor President Gong Young-woon, GM Korea President Kaher Kazem, Renault Samsung Motors President Dominique Signora, SsangYong Motors Managing Director Chung Moo-young and Foundation of Korea Automotive Parts Industry Promotion Head Oh Won-seok.

The automotive industry has agreed to build a carbon-neutral foundation by achieving high efficiency and hybridization of internal combustion engine cars in the short term.

In the mid to long term, the industry will try to achieve complete carbon neutrality by applying carbon-neutral fuels together with the supply of world-class electric and hydrogen vehicles.

At the same time, the industry requested the government to provide a strategic measure to maintain production bases and jobs during the industry’s transition towards future mobility.

The industry also requested the government to incentivize the private sector through various measures such as R&D and subsidy improvement to lower car prices; creation of financing and guarantee programs; reduction of production costs through incentives for investment and improvement in labor-management relations; relaxation of environmental regulations; more benefits for eco-friendly vehicles; and expansion of EV charging infrastructure.

In response, Minister Sung said the government will support the industry’s efforts through five major policies for carbon neutrality in the automotive industry.

By Pulse

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