Planned government subsidies for midsize hybrid electric vehicles are predicted to push up sales by giving them a price edge over gasoline-powered vehicles, industry watchers said Thursday.

The prediction comes after the government announced its plan to give 1 million won ($960) subsidies to those buying one of eight types of midsize HEVs sold on the market starting next year.

“In the case of the Sonata YF and K5 hybrids that already get 2.5 million won cuts from the carmaker, the cost difference vis-a-vis a gasoline-powered car will be nonexistent, after paying all the necessary taxes,” a Kia Motors source said.

He speculated that the hybrid version K5 may actually be marginally cheaper than the sedan that runs on petrol, if the two are comparably optioned.

At present, a fully loaded K5 HEV costs 29 million won, compared to a little over 23 million won for the gasoline combustion engine model. (Yonhap)