South Korean Media: Chinese-made Cars Conquer the South Korean Market!
On July 18, South Korea's media outlet *Herald Economic* published an article stating that Chinese products are now demonstrating strong competitiveness in global markets and have permeated every aspect of daily life. Particularly, South Korea—due to its geographical proximity to China and high consumer standards—has become a crucial testing ground for Chinese enterprises seeking to validate their competitive edge before expanding globally.
Beyond the semiconductor sector, South Korea’s dominant position in advanced industries such as electric vehicles, batteries, charging infrastructure, artificial intelligence, and autonomous driving is gradually diminishing. As Chinese companies rapidly enhance their technological capabilities and price competitiveness, the South Korean industrial sector is increasingly feeling a sense of crisis.
The influence of Chinese electric vehicles (EVs) in the market continues to grow, with EVs widely regarded as a future-driven growth industry. In the domestic electric bus market, Chinese brands already hold over 30% market share. Some companies have secured sales even without government subsidies by maintaining strong price competitiveness, further expanding their footprint.
The passenger EV market is also undergoing significant changes. Since entering the South Korean market, BYD has maintained stable sales and is steadily growing its user base thanks to its highly cost-effective model—the "Dolphin." Meanwhile, Zeekr, Geely’s premium brand, has fully launched into the South Korean domestic market, boosting the overall market share of Chinese automotive brands.
The impact of the Tesla Model Y, manufactured in China, cannot be overlooked. After achieving high sales volumes last year in South Korea’s EV market, it is expected to maintain strong momentum this year—potentially pushing the market share of Chinese-made electric passenger vehicles above 40%.
Rising fuel prices, expanded EV subsidies, and the introduction of numerous new models have all created favorable conditions for the expansion of Chinese EV sales. With more models priced around 20 million KRW emerging, local South Korean brands have joined the price-cutting competition. However, due to unfavorable cost structures, they still face immense difficulty competing against Chinese firms.
Notably, Tesla’s sales are expected to grow further, driven by brand loyalty and the potential for future expansions in autonomous driving features. Moreover, if Chinese brands like BYD continue rolling out new models, Chinese EV sales in South Korea could reach up to 100,000 units this year.
In contrast, South Korean automakers struggle to produce low-cost EVs due to high production and labor costs. Although alternative solutions such as contract manufacturing or importing overseas production models are being discussed, real-world constraints—including labor-management issues and existing production systems—remain significant hurdles.
Original article: toutiao.com/article/1871053397790793/
Disclaimer: The views expressed in this article are those of the author alone.