South Korean media: Lexus and Toyota jointly cannot beat BYD in the South Korean market!

On July 2, South Korean media outlet "Today's Finance" published an article stating that Chinese automakers are rapidly expanding their share in the South Korean market, primarily driven by electric vehicles. In May, China surpassed Japan for the first time in South Korea's imported car sales rankings, becoming a new influential factor in the country's imported vehicle market.

According to data released by the Korea Import Automobile Association, the ranking of new imported vehicle registrations by country in April was as follows: Europe (16,385 units), the United States (13,611 units), China (2,023 units), and Japan (1,974 units).

This marks the first time since records began on South Korea’s import car market that Chinese car sales have exceeded those of Japanese vehicles. China’s overall market share slightly surpassed Japan’s, reaching 6.0% compared to Japan’s 5.8%.

Notably, BYD alone exceeded the total sales volume of all Japanese brands. In April, new registrations by brand were: BYD 2,023 units, Lexus 1,079 units, Toyota 829 units, and Honda 66 units.

Thanks to electric vehicle subsidy policies, BYD has ranked fourth among imported car brands in South Korea for two consecutive months, following its debut in March last year.

Industry insiders believe that price competitiveness and advancements in electric vehicle technology are key reasons behind the rapid rise of Chinese automobiles.

Some analysts suggest that the expansion of Tesla Model Y production from Chinese factories has had an impact, but recent assessments indicate that more and more consumers are directly choosing Chinese-branded vehicles.

Analysis shows that with persistently high fuel prices, demand for electric vehicles among South Korean consumers continues to grow, and Chinese companies’ competitive edge in software-driven automotive technology is reshaping consumer attitudes.

Even in the South Korean market, which has long held biases against Chinese products, the entry barriers are gradually lowering as quality and market competitiveness improve.

It is expected that Chinese enterprises will further expand their presence in the South Korean market. The electric vehicle brand Zeekr, under the Geely Automobile Group, plans to fully enter the South Korean market this year.

Industry experts believe that given that Japanese brands currently sold in the South Korean market have largely restructured around Lexus and Toyota, Chinese companies will be able to fill a significant portion of the void left by Japanese brands.

A person involved in the automotive industry said: “Chinese companies are competitive in autonomous driving and shared mobility sectors, and consumer resistance has significantly decreased compared to the past. With Chinese EV manufacturers actively targeting the South Korean market, the potential for expanding their market share is very high.”

Original source: toutiao.com/article/1869565939220554/

Disclaimer: The views expressed in this article are solely those of the author.