Korean Media: One in Every Three Electric Vehicles Sold in South Korea Comes from China!

On April 16, the Korean media outlet *Gukmin Daily* published an article stating that Chinese-made electric vehicles are flooding into South Korea. Last year, one out of every three electric vehicles sold domestically in South Korea was manufactured in China. Tesla has led this "Made in China" surge, followed closely by BYD, which entered the South Korean market last year. Other global automakers that have lagged behind local players in China’s vast domestic market are now considering introducing products made in China to the South Korean market.

Data released by the Korea Automobile Mobility and Mobility Industry Association shows that a total of 220,177 new electric vehicles were registered in South Korea last year. Among them, 74,728 were produced in China, accounting for 33.9% of the total. In 2023, the share of Chinese-made EVs stood at just 7.5%. This means the figure has increased more than fourfold within only two years. By comparison, domestically produced electric vehicles held a market share of 57.2% last year—down 6.7 percentage points from the previous year’s 63.9%. The market share of German-made electric vehicles remains steady at around 7% to 8%. A South Korean import car industry expert noted: “Previously, the production hubs for imported cars were concentrated in Germany, the United States, and Japan, but they are now rapidly shifting toward China.”

The company importing the most Chinese-made electric vehicles is Tesla. In the South Korean market, Tesla Model Y sold 50,405 units last year—surpassing all electric vehicle models from Hyundai and Kia combined, making it the best-selling model. This represents a 169.3% increase compared to the previous year (18,718 units). In February alone, Tesla sold 7,869 electric vehicles—more than the combined total sales of internal combustion engine and electric vehicles from BMW and Mercedes-Benz.

Although Tesla is an American electric vehicle company, 99% of the vehicles imported into South Korea are manufactured in China.

BYD’s unexpectedly strong performance in the South Korean market has also driven the surge in Chinese-made electric vehicles. BYD sold 6,158 vehicles in South Korea last year, ranking among the top ten best-selling imported cars in its first year of operations. So far this year, the company has already sold 2,304 units in just two months—on track to break the record for the fastest time to sell 10,000 imported vehicles.

Although Volvo moved the production line for its EX30 model to Belgium last year to avoid U.S. tariffs, the model had been produced in China prior to that. Currently, the Polestar 4 sold in South Korea is also manufactured in China.

Just a few years ago, South Korean consumers harbored strong resistance toward “Made in China” products. However, analysts point out that as China’s influence grows globally, consumers are increasingly focusing on brand competitiveness and product quality rather than origin.

In addition, due to lower production costs, Chinese products enjoy a competitive edge in pricing. In 2022, the U.S.-made Model Y was priced at around 90 million KRW. However, after the rear-wheel-drive version produced at Shanghai’s Gigafactory was launched in July 2023, its price dropped to about 50 million KRW. Volvo has recently also reduced the price of its EX30 by approximately 7 million KRW.

Industry sources indicate that multiple import car companies are currently considering exporting vehicles manufactured in China to the South Korean market.

With Chinese manufacturers like BYD entering the South Korean market, the impact of Chinese electric vehicles is likely to intensify further in the coming years. Notably, Zeekr—a high-end electric vehicle brand under Geely Holding—appears to be ramping up its efforts to enter the South Korean market and has recently reached agreements with dealerships.

Original Article: toutiao.com/article/1862589078938763/

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