Korean LPG market growth in demanding EV environment

Interview with Robbie Smit, Area Manager South Korea and North America, Westport Fuel Systems
This article describes the view of Robbie Smit regarding the developments within the LPG / Autogas Markets with a focus on the strong growth in South Korea, based on his own experience.

Korean LPG market growth in demanding EV environment

Amidst the political push for BEV growth in South Korea, as seen in the Western world, Korean manufacturers have invested in more production capacity for EVs and set goals to increase the BEV market share.

Something very unique however is that the Korean OEMs look beyond the BEV solutions to make their changes for greener mobility solutions: When changing the traditional small Korean work vehicles to abandon the diesel engines in favor of an LPG engine.

The work trucks called the Hyundai Porter II and Kia Bongo III are sold annually in excess over 100.000 units every year. Anyone who has visited Korea in the past must have seen these iconic little commercial vehicles. And since the roll out in 2024, most of these trucks are now LPG vehicles being put to work. “This approach has shown that it is feasible for OEM’s to have a broader vision to the greener mobility demand and that BEV only is not working”, says Robbie Smit. “Hyundai and Kia have used their experiences and products to expand the LPG vehicle offerings to the commercial market and utilizing the existing fuel network for a fast integration. The results undoubtedly are massive CO2 savings and other greenhouse gases and particulate matters that are not being exposed to the Korean public by discontinuing the diesel engines for the commercial market.”

Millions of taxis have been using LPG for many years in Korea. 

The Korean LPG market traditionally serves the taxi industry as the majority adopter of LPG fuel, by means of OEM vehicles that are LPG mono-fuel. Currently 4 Korean OEMs are offering LPG in their vehicle line-up; Hyundai and Kia have the broadest range and highest volume. Followed by Renault Korea and KG Mobility (former SsangYong).

In addition to the OEM cars, SUVs and trucks, there are After-Market solutions being applied in Korea as well. The Korean LPG industry is very experienced and well locally integrated. With 4 Korean OEM’s and local manufacturers of system and fuel storage equipment there is a lot of knowledge and technology advancement.

After-Market solutions

Not all models made by Korean OEM’s are being offered with LPG. The limited range of vehicles and engines, with sometimes older engine technology, leaves opportunities for the Korean After-Market. The Korean LPG After-Market has created a broad range of vehicles and engines to become available for Taxi drivers, private owners and businesses. With better LPG fuel system technology, the newest engines, including DI, Turbo and hybrid engines are being installed and sold. If a particular model and engine is greatly appreciated by the Taxi industry, but the OEM does not offer an LPG option, there are professional companies that step in.

Check the box on LPG

Another welcome approach is that for some models, the LPG installations can be ordered as an added option at the dealerships.
In that case, the OEM supports and warranties these installations but does not produce the vehicles with LPG on the factor line. 
This flexible approach enables LPG models to become available faster to the public and on newer models.

Company Ro-Turn is a professional installation company that works on many different LPG vehicles. Ro-Turn takes on new developments with advanced technology as well as offering service to older LPG vehicles. Ro-Turn is recognized as an Excellent Tuning company by the Korea Safety Transportation authority (TS). They have been awarded this prestigious honor in 2024.

Shown here are the Kia Carnival 1.6T Hybrid which is a popular model of choice among Taxi companies and the Renault Arkana 1.6 Hybrid with LPG Bi-fuel.

Robbie Smit: “As I see it, annually there are in excess of 100.000 LPG vehicles being produced in factories in Korea, in addition there are vehicles upfitted when ordered as an LPG option at dealerships. With the upcoming sales of the LPG Hyundai Porter II and Kia Bongo III, this number has increased significantly in just one year and is expected to grow further. Western OEM’s could learn a thing or two from Hyundai and Kia when it comes to their approach for greener mobility. With their choice to double down on LPG, they are applying proven technology to existing vehicles, offering more solutions to reduce diesel vehicles and using existing fuel networks for fast and large integration.”

In the EU many companies are looking for commercial vehicles that are better alternatives for their operation than the EV Vans they are being offered currently. Charging times, reduced payload and towing, high vehicle and infrastructure cost are not favorable to businesses.
And as Korea shows, it is possible to offer LPG solutions today that overcome all those challenges.