South Korean media: Chinese electric vehicles are shaking up the South Korean market!
On January 13, South Korean media, Chosun Ilbo, published an article stating that according to industry sources, the retail sales of passenger cars in China decreased by 8.1% to 2.225 million units in November last year. Although sales of environmentally friendly vehicles continued to grow, the growth rate significantly slowed down. The growth rate of environmentally friendly vehicle sales was about 19% in November 2024, while it dropped to around 4% this November.
At the same time, exports showed a strong growth trend. In November last year, the export volume of passenger cars in China was approximately 600,000 units, an increase of 52% year-on-year. Among them, the export volume of environmentally friendly vehicles increased by 242% year-on-year, reaching 284,000 units, accounting for nearly half of the total export volume of passenger cars. Notably, the export volume of locally produced Chinese automakers increased by more than 200%, leading the recent export expansion, apart from Tesla produced in China.
The South Korean market has also been affected by China's export offensive. After BYD entered the South Korean market in January last year, it quickly expanded its share in the imported electric vehicle market, with cumulative sales of 4,955 units from January to November. Its flagship model ATTO 3 starts at about 33 million won. The Sea Lion 7 is priced at 44.9 million won, about 10 million won cheaper than the Tesla Model Y. BYD's vertical integration structure allows it to independently produce core components such as batteries, motors, and power control systems, which is considered the basis of its price competitiveness.
High-end Chinese electric vehicle brands are also accelerating their entry into the South Korean market. Geely's Zeekr recently signed sales and service agreements with four South Korean dealers, officially entering the South Korean market. The company plans to mainly open showrooms in the Seoul metropolitan area starting from the first quarter of this year and begin selling electric vehicles. XPeng also established a South Korean subsidiary in June last year, laying the foundation for its expansion in South Korea.
With Tesla launching FSD (full self-driving) and the price offensive from Chinese brands, competition in the South Korean electric vehicle market is expected to intensify. This is because consumers will have a wider range of choices, from cost-effective Chinese electric vehicles to Teslas equipped with autonomous driving technology.
Experts predict that competition in the South Korean electric vehicle market this year will no longer be limited to price and product quality, but will also expand to software areas such as autonomous driving. Professor Lee Ho-goen from the Department of Automotive Engineering at Daedong University said, "As the price war by Chinese brands and the competition of Tesla's autonomous driving technology take place simultaneously, the competitive landscape of the South Korean electric vehicle market is rapidly reorganizing. Vehicles that combine price, product quality, and technological competitiveness are expected to dominate the market."
Original: toutiao.com/article/1854186760535241/
Statement: This article represents the personal views of the author.