S. Korea to produce mid-size electric cars from 2014

SEOUL, Aug. 10 (Yonhap) -- South Korea will begin producing mid-size electric vehicles from 2014, three years ahead of schedule, in an attempt to secure a dominant position in the global market, the government said Wednesday.
The Ministry of Knowledge Economy signed a memorandum of understanding late last month with a consortium led by the country's leading automaker Hyundai Motor Co. to develop the country's first "mid-size" electric vehicle for commercial use by 2014.
The ministry earlier sought to complete development of mid-size electric vehicles in 2017 under its so-called Green Car Development Plan, announced late last year.
Hyundai Motor, along with its 43 partners and suppliers, developed the country's first compact electric vehicle, the BlueOn, last year and is set to produce about 250 units before the end of the year for use mostly by public offices.
Kia Motors Corp., an affiliate of Hyundai, is also developing an electric compact utility vehicle, which is expected to be revealed at the end of this year.
The latest project to develop a mid-size sedan also seeks to significantly improve the performance of electric vehicles and lower their prices, according to the ministry.
"The most outstanding characteristic of this project is that it will try to lower high prices and improve poor performance (of electric vehicles) that have been considered as an obstacle to promoting wide use of electric cars," the ministry said in a press release.
Currently, Hyundai's BlueOn can travel up to 140 kilometers per six-hour recharge, shorter than 160 kilometers covered by its main Japanese rival the LEAF by Nissan Motor Co.
The ministry said Hyundai Motor and 43 others under the consortium will develop new batteries that will significantly improve the car's performance and shorten the time needed to recharge.
The new batteries will also help lower the price of electric vehicles, which currently stands at about five times higher than that of gasoline-powered cars, because the lithium-ion batteries make up large part of the vehicles' price, the ministry said.
The Hyundai consortium also includes three other automakers in South Korea, including GM Korea Co., the South Korean unit of U.S. automaker General Motors Co., and Renault Samsung Motors Co., the South Korean unit of French automaker Renault SA.