`Stricter fuel rule would lead to eventual demise of gasoline cars`

Setting a set of new pollution standards, the government yesterday launched a national campaign to reduce carbon emissions and raise the fuel-economy of new cars starting in 2012.

The new compulsory rule is expected to bring changes on Korean roads as it is ultimately aimed at promoting the development of green cars in the future, industry officials said.

"The standard for the fuel-economy will be increased again next year and so on. The government`s stricter rules on fuel economy or the carbon limit will finally make automakers abandon gasoline-fueled cars in the future," Choi Dae-shik, analyst of Hi Investment and Securities Co., said.

The plan unveiled yesterday will require passenger cars and mini-vans with less than 10 passenger seats to get an overall average of 17 kilometers per liter by 2015 and less than 140 grams per kilometer of carbon emission, according to officials. The requirement will be gradually phased in, starting with 2012 models.



The new rule means that there will be more cars equipped with a gas-electric hybrid or a diesel engine.

"The government`s regulation on the fuel efficiency of cars is a global trend. The measure will promote or speed up the production of hybrid cars in near future," the analyst said.

Major automakers yesterday said that they are ready for the rules.

But they will wait for more information and what assistance they will receive by fulfilling the requirement.

"The company has already been developing hybrid cars to meet with new requirements adopted by advanced countries like Europe and the U.S.," a PR manager at Hyundai Motor Co. said.

Last week, Hyundai Motor introduced the Avante LPi, or liquefied petroleum gas injection, the company`s first hybrid electric vehicle and the world`s first hybrid car powered by a combination of electric motors and an LPG-powered engine.

The government, in return, will strengthen R&D support for local carmakers and parts makers developing clean diesel, plug-in hybrid car and automobiles with fuel-cells.

The government plans to invest 262.5 billion won ($206 million) from 2010-2013 for the development of green cars.

It will also offer 3.1 million won of tax breaks for hybrid car buyers as well as considering launching preferential auto insurance policies for them.

With these and other programs, the government aims to make the country one of the four largest producers of green cars.

It hopes to increase the presence of the hybrid car market to 3.9 percent in the year 2013 and to 5.1 percent in the same year in the clean diesel car market.

However, experts raised concerns about smaller carmakers not capable of developing green cars.

"My concern is that the rule will have a negative impact on minor carmakers such as Ssangyong that produces heavy SUV vehicles and full-sized cars," said Chun Gwang-min, professor of Yonsei University.

The carmaker, which has filed for bankruptcy in the face of economic recession, will find it hard to fulfill the government`s new rules, other experts said.

(christory@heraldm.com)



By Cho Chung-un