K Car: 72% of Drivers Willing to Replace Vehicles if Fuel Prices Rise... Majority Prefer Eco-Friendly Cars

When Replacing Vehicles, 39.2% Prefer EVs and 36.8% Opt for Hybrids
83.8% Willing to Pay Extra for Transition to Eco-Friendly Cars

A recent survey revealed that more than 70% of drivers in South Korea would consider replacing their vehicles if high fuel prices persist. Among respondents open to changing vehicles, the majority expressed a preference for eco-friendly models, such as electric or hybrid cars.

Survey Results from K Car. K Car

K Car, South Korea's largest directly-managed used car platform, conducted a survey of 500 drivers nationwide to examine car usage patterns and perceptions on transitioning to eco-friendly vehicles in an era of high fuel prices. According to the results published on August 29, 72% of respondents said they would consider replacing their vehicles should fuel prices increase or remain high.

The survey also found that the threshold at which monthly fuel (or charging) costs would prompt drivers to consider changing vehicles was most commonly set at an increase of “over 20%,” with 35.0% selecting this option. The next most common responses were “between 15% and 20%” (10.4%), “between 10% and 15%” (9.8%), “between 5% and 10%” (5.0%), and “less than 5%” (1.6%). Additionally, 10.2% said they were already considering a vehicle replacement. In contrast, 28.0% indicated that even if fuel costs rise, they have no intention of changing vehicles.

The target price per liter that would trigger consideration for vehicle replacement differed by fuel type. For drivers of gasoline or hybrid vehicles, “around 2,200 won per liter” was the most common response at 27.9%, followed by “around 2,000 won per liter” at 18.5%. Among diesel vehicle owners, “around 2,000 won per liter” was cited by 25.0% and “around 2,100 won per liter” by 21.7%, indicating that the 2,000-won-per-liter range is a key benchmark for considering a replacement across driver groups.

When asked about the timing of a replacement if high fuel prices persist, 26.8% indicated “more than one year,” and 26.4% said “between six months and one year.” “Between three and six months” was selected by 14.2%, “between one and three months” by 3.4%, and “less than one month” by 1.2%. The results suggest that sustained high fuel prices—rather than short-term price spikes—have a greater impact on stimulating demand for vehicle replacement.

If replacing their vehicles, respondents’ preferred fuel type was electric at 39.2%, followed by hybrid at 36.8%. Combined, these two eco-friendly alternatives accounted for 76.0%. Gasoline vehicles were preferred by 6.2%, LPG by 2.0%, and diesel by 1.8%, indicating that the burden of high fuel prices is significantly boosting interest in switching to eco-friendly cars.

Regarding willingness to pay a premium for eco-friendly vehicles over traditional internal combustion cars, 83.8% said they were ready to pay extra. Specifically, 21.8% were willing to pay “over 3 million won up to 5 million won,” followed by “over 7 million won up to 10 million won” at 16.0%, “over 10 million won” at 14.2%, and “over 5 million won up to 7 million won” at 13.6%. Those willing to pay more than 5 million won comprised 43.8% of total respondents.

There was almost an even split regarding preference for new or used eco-friendly vehicles. 45.2% said they would “choose a new car regardless of the price difference,” while 44.6% responded that “if the price advantage is significant, I would choose a used vehicle.” These results suggest that reasonably priced used eco-friendly cars could generate ample demand in the market.

In terms of current monthly average expenditures on fuel or electricity, 30.8% of drivers reported spending “over 100,000 won up to 150,000 won,” followed by “over 150,000 won up to 200,000 won” at 23.6%, “below 100,000 won” at 19.8%, and “over 200,000 won up to 300,000 won” at 17.6%. Altogether, 72.0% of respondents spend between 100,000 won and 300,000 won each month.

Jung Inguk, CEO of K Car, said, “Consumers tend to respond to short-term fuel price increases by reducing driving or utilizing discount benefits. However, when high fuel prices persist for a prolonged period, they begin to seriously consider vehicle replacement and the switch to eco-friendly cars. K Car will continue to analyze shifts in car usage and consumer awareness to proactively identify market trends and provide information to support customers in making rational vehicle choices.”

This content was produced with the assistance of AI translation services.