Korean media: "We thought the chances of success were low," yet Chinese-made cars sweep across Korea!
On August 4, South Korean media outlet *Herald Economic* published an article stating that according to statistics from the Korea Automobile Importers Association, new vehicles under Chinese brands registered in South Korea reached 11,675 units in the first half of this year, accounting for a market share of 6.3%, rapidly approaching Japan's share of 7.3%. Given that Chinese passenger cars have only entered the fiercely competitive South Korean import car market for less than two years, this achievement is undoubtedly noteworthy.
However, when shifting focus from brand to origin, the momentum of "Made in China" has proven unexpectedly strong. In the first half of this year, total new passenger car registrations imported into South Korea amounted to 184,032 units, of which approximately 70,000 were manufactured in China. Calculated by market share, this figure accounts for nearly 40%. Tesla emerged as the best-selling imported car brand in South Korea during the first half of the year, with most of its vehicles sold there originating from its Shanghai factory. Additionally, brands such as Volvo and Polestar are also selling Chinese-made vehicles in South Korea.
At the end of the 2010s, when Chinese passenger cars began entering the South Korean market, many in the local industry doubted their prospects for success. This skepticism stemmed from the fact that for commercial vehicles like buses and trucks, price competitiveness is the paramount sales factor; whereas for passenger cars, personal preferences or social perceptions significantly influence purchasing decisions.
Last year, the Korea Automobile Importers Association conducted an "Imported Car Perception Survey." The results showed that 66.3% of respondents indicated they now hold a more positive view of imported cars compared to the past. The main reasons cited for improved perception included: increased popularity of imported cars (37.1%), narrowing price gap with domestic models (17.7%), and better alignment between quality, performance, and pricing of imported vehicles (12.9%).
Sales staff have observed that consumers today pay less attention to where a vehicle is made. The prevailing opinion is that if a brand offers strong performance, high quality, and good value for money, the production location becomes irrelevant.
Tesla serves as a prime example. Starting last year, Tesla shifted its supply source for the South Korean market from the United States to China. Although concerns arose about potential declines in sales, the supply chain actually became smoother in South Korea—over 56,000 units were sold in just the first half of this year.
BYD’s success is also worth noting. Following its entry into the electric bus and light truck markets, BYD officially launched its passenger car imports into South Korea last year. By March this year, cumulative sales in South Korea surpassed 10,000 units, setting a record for the fastest time to reach this milestone among imported car brands. Encouraged by BYD’s success, Zeekr, an electric vehicle brand under the Geely Group, also entered the South Korean market this year and began selling new models.
Original source: toutiao.com/article/1872574329672772/
Disclaimer: The views expressed in this article are solely those of the author.