Korean Media: Chinese EVs Surge Sevenfold in Three Years, Sweeping South Korea!
On May 25, South Korean media outlet Herald Economic published an article stating that, according to a survey, the share of Chinese-made electric vehicles (EVs) in South Korea’s domestic EV market has increased more than sevenfold over the past three years, while the market share of locally produced Korean EVs has dropped by half.
Recently, Jeong Da-jin, President of the Korea Automobile & Mobility Industry Association (KAIA), said, “Although EV demand has recently increased, competition between the domestic South Korean market and low-cost Chinese EVs is intensifying. The market share of Chinese EVs rose from 4.7% in 2022 to 33.9% last year, while the share of domestically produced Korean EVs has continuously declined—from 75% to 57.2%.”
This trend continues this year. In the first quarter, sales of locally made South Korean EVs reached approximately 51,000 units, while sales of Chinese EVs reached around 25,000 units, increasing by 126.1% and 286.1%, respectively. The growth rate of Chinese EV sales was more than twice that of South Korean EVs.
Jeong Da-jin emphasized the necessity of protecting South Korea’s domestic automotive industry, stating, “Major countries are strengthening policy responses to safeguard and promote their own EV industries—for example, Japan offers tax incentives for domestic production in strategic sectors.”
He specifically pointed out, “As the burden of transformation in the auto parts industry grows heavier and access to technology and human resources becomes increasingly difficult, weakening of finished vehicle manufacturing bases could lead to the shrinkage of the entire industrial ecosystem. Over time, this may even result in hollowing out of domestic manufacturing.”
He added, “Beyond existing support measures centered on R&D and investment, urgent policy measures targeting the EV sector are needed—such as establishing a domestic production promotion tax system—to boost large-scale domestic production and improve capacity utilization.”
Lee Jae-sung, President of the Korea Automotive Industry Cooperative (KAICA), also expressed concern, saying, “If competition in the EV sector intensifies and import volumes continue to expand, the domestic production situation may further deteriorate. The weakening of production foundations will not only cause the collapse of the entire parts industry ecosystem but also threaten employment stability.”
Original source: toutiao.com/article/1866161091936265/
Disclaimer: The views expressed in this article are solely those of the author.