LPG Passenger Cars Lose Ground to Hybrids... Facing Phase-Out

LPG Passenger Car Sales Drop 12.9% from January to August
Below 50,000 Units Last Year, Down from 60,000 in 2022

The position of passenger vehicles powered by LPG is steadily declining.

This is interpreted as the result of LPG cars losing ground not only in terms of running costs but also in the eco-friendliness race to electric and hybrid vehicles, which offer higher fuel efficiency and quieter rides. In response to the electrification trend, automakers are moving to discontinue their LPG models.

Yonhap News Agency

According to the Korea Automobile Mobility Industry Association, domestic sales of LPG passenger vehicles for the period from January to August this year totaled 27,687 units, down 12.9% from the same period last year. LPG passenger vehicle sales fell from 68,297 units in 2022 to 51,823 units in 2023, then 59,636 units in 2024, and further declined to 47,274 units last year, continuing this downward trajectory.

LPG vehicles have grown the market based on the advantages of low fuel costs and economic efficiency, but electric and hybrid vehicles are now quickly taking over this segment. Moreover, with recent increases in LPG prices, it is increasingly doubtful whether LPG cars can ever regain their former competitiveness.

Throughout this year, LPG prices have continued to rise. According to E1, the supply price of butane for transport use increased by 50 won per kilogram in April, 140 won in May, 30 won in June, and 50 won in July. Although rates were frozen in August and September, the September supply price stood at 1,719.54 won per kilogram, noticeably higher than at the start of the year. When converted to liters, the September supply price of automobile butane was 1,004.2 won per liter.

The shrinking LPG market has also led to fewer new model choices. Currently, LPG passenger cars available to consumers are limited to the Hyundai Sonata and Grandeur and Kia’s K5, K8, and Sportage. In contrast, the hybrid lineup is expanding rapidly across key segments, including sedans, SUVs, and MPVs.

This disparity is also reflected in sales figures. Last year, domestic sales of the Sportage totaled 74,517 units, with 28,006 of them being hybrids and only 5,172 LPG models sold. Hybrid sales were about 5.4 times higher than LPG.

For the Hyundai Grandeur, out of a total of 71,775 units sold last year, 35,569 were hybrids. Only 2,938 were LPG, meaning the hybrid sales were 12 times those of LPG.

As a result, it is expected that automakers will continue to discontinue LPG models. Kia is reportedly considering a plan to restructure the powertrain lineup for the upcoming Sportage, which is set to launch next year, to focus mainly on hybrid and plug-in hybrid models. Renault Korea had already discontinued the QM6 LPG variant at the end of last year.

An industry official commented, "Low fuel costs alone are no longer enough to persuade consumers, and the position of LPG in the passenger car market is weaker than in the past." The official further said, "The commercial vehicle market, including taxis, is also quickly transitioning to electric vehicles, which means the LPG market will inevitably continue to shrink."

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