South Korea's Ministry of Trade, Industry and Energy revealed new policy initiatives this week designed to dramatically increase production of new energy vehicles (NEVs) in the country over the next five years.

The ministry wants production of NEVs such as hybrid and electric vehicles (EVs) in the country to reach 920,000 units by 2020, from an expected 80,000 units in 2015. 

It wants NEVs to account for 20% of domestic sales within five years, compared with just 2% at present. It also aims to increase the number of EV charging stations in the country from 400 to 1,400 in the same period.

The South Korean government will make grants worth up to KRW150bn (US$127m) available for domestic carmakers such as Hyundai-Kia to help strengthen their NEV product line-ups.

Longer term, the government expects "environmentally-friendly" cars to account for around 50% of global car sales by 2030.