Solution for Reducing Emission
South Korean President Moon Jae-in promised during his election campaign that he would retire personal diesel vehicles in the country by encouraging the supply of green cars for particulate matter reduction. Specifically, he remarked that he would reduce particulate matter emissions by at least 30% before the end of his term by banning personal diesel vehicles in or before 2030.
The Korean government is expected to raise its diesel tax and carry out deregulation for LPG vehicles to that end. In addition, LPG vehicles are likely to be allowed to anyone. At present, this type of vehicles can be purchased only by taxi drivers, car rental businesses, disabled persons and people of national merit. The government already formed a task force in this regard. Specific measures concerning the unlimited use of LPG vehicles are scheduled to come out next month.
The government’s policy for particulate matter reduction is likely to have a significant impact on the local automobile market including foreign car brands focusing on diesel vehicles and those that need to increase the ratios of gasoline vehicles and green cars.
These days, most automakers supply diesel, gasoline and green cars at the same time and, as such, they can cope with a decline in demand for diesel cars without substantial difficulties. Still, they may temporarily fail to meet the demand for non-diesel cars because engines that can be immediately supplied are not unlimited.