Hybrids are becoming the vehicle of choice

Last year's best-selling hybrid cars in Korea: Kia Sorento SUV, Hyundai's Grandeur sedan, Kia K8 sedan, Hyundai Tucsan SUV and Kia Niro SUV. [HYUNDAI MOTOR, KIA]

Crude oil prices are skyrocketing, while Korea still lacks the infrastructure for electric vehicle (EV) charging, driving up demand for best-of-both-world hybrid cars.

Gasoline prices hit a 10-year high in Korea last week, crossing the 2,000 ($1.65)-won-per-liter mark for the first time since 2012.

According to Opinet, a website with oil price information from the Korea National Oil Corporation, gasoline prices at gas stations nationwide averaged at 2,002.56 won per liter as of 4 p.m. Friday, up 3.3 percent on week. The average price in Seoul was 2,082.39 won per liter, up 3.1 percent.

Soaring prices have led drivers to leave their cars at home and take public transportation instead, discouraged from driving by the sky-high prices.

"Even when going out on weekends, I have to consider how far the destination is," said a 40-year-old office worker. "It's difficult for me to drive anywhere far."

The same goes for commuting.

"I just leave my new car at home and take the bus to work," said a driver who recently bought a Hyundai Grandeur sedan with a gasoline engine. "Since I commute between Bundang in Gyeonggi and Gwanghwamun every day, the fuel cost would be too much for me."

Hybrid cars have become the next best option for car buyers who were thinking of getting a gasoline- or diesel-powered vehicle.

Hybrids are also an attractive alternative for those who want an electric vehicle but are concerned about the lack of charging stations and the expensive vehicle prices.

"I don't want to buy an internal combustion engine car since the tide has clearly turned to EVs," said a 30-year-old office worker. "But I'm not sure about getting an EV yet because of entry barriers, like the issue with charging."

Hybrids have been gaining more traction in recent years as consumers opt to make a slow transition to the greener automotive option.

Last year, 239,971 hybrid cars were sold in Korea — 36 percent more than the previous year, according to Korea Automobile Manufacturers Association. It was a threefold jump compared to 2017.

Six times more EVs were sold last year compared to 2017, but still far fewer than hybrids. A total of 100,355 all-electric cars were sold last year.

Sales of conventional gasoline vehicles have been on a steady decline from 1.58 million units in 2017 to 1.26 million last year.

The trend was accelerated by global crude prices, which have been rising since the start of this year due to the post-pandemic economic recovery and the Russia-Ukraine conflict.

BMW sold about 800 plug-in hybrid 530e sedans from January to February, nearly double from the same period last year. Mercedes-Benz sold more than 1,000 E 350 hybrid sedans in February.

"We have had more people asking about purchasing the car this month than before," said a spokesperson for Mercedes-Benz Korea.

One in every three would-be buyers was considering getting a hybrid, according to Encar, the online car marketplace.

A survey of 3,427 people conducted by the company in February found that hybrids were the most popular choice for 31 percent, followed by EVs (28 percent), gasoline vehicles (24 percent) and diesel vehicles (14 percent).

The results were in stark contrast to the previous year's survey by the company, in which 65 percent of respondents said they were planning to buy a gasoline or diesel car.

Supply is not keeping up with the high demand.

The wait time for a Kia Sorento SUV, last year's best-selling hybrid, is a year and three months.

"The SUVs that are in high demand now have waiting periods of more than a year, and among those, hybrid models require several more months than the gasoline ones," said a spokesperson for Hyundai Motor.

While the chip shortage was the initial cause of the longer waiting period, the Russian invasion of Ukraine made things even worse, further boosting the prices.

"People think that the price tag they are seeing now is the cheapest, so the pre-orders are sold out really quickly these days," said an auto industry insider, "so more consumers are eyeing the secondhand cars or leasing instead."

"Imported plug-in hybrid cars have recently gained popularity due to shorter waiting periods," said Lee Ho-geun, a professor of auto engineering at Daeduk University, adding that "a gasoline car may be an option for you if you mostly drive in the city."

BY BAEK MIN-JEONG [shin.hanee@joongang.co.kr]