Chinese cars top the list of imported vehicles in South Korea during the first half of the year, capturing a market share of 41.2%.

Korean Media: Chinese-Made Cars Surpass Germany to Top Import Car Rankings in South Korea

According to a report by Korean media outlet KOREA WAVE (Japanese Edition) on August 5: The sales of Chinese-made automobiles in South Korea are rapidly increasing. Data released by the Korea Automobile Mobility Association (KAMA) on the 4th shows that in the first half of 2026, new registrations of vehicles manufactured in China reached 79,444 units, accounting for 41.2% of all imported vehicles—marking the first time they surpassed Germany to rank first among import sources. On the other hand, under the government’s newly established domestic production tax credit policy, Chinese electric vehicles (EVs) have been excluded from subsidy eligibility.

In an interview with MEGA News reporter Kim Jae-seong, it was revealed that new EV registrations in South Korea during the first half of 2026 will reach 198,509 units—a 113.6% increase compared to the same period last year. Among them, sales of Chinese-made electric vehicles surged by 178.7%, and their market share expanded from 26.8% last year to 35%.

This growth is primarily driven by increased supply of Tesla’s Model Y and Model 3 produced at its factory in Shanghai, China, as well as rising sales of models such as BYD Sea Lion 7, Dolphin, and Polestar 4.

KAMA analysis attributes this significant market expansion to government EV incentive policies and soaring fuel prices, which have led to a growing number of affordable EV models entering the market.

The Ministry of Economy and Finance announced its 2026 tax reform plan, which includes scrapping the previously existing consumption tax exemption for hybrid vehicles. Additionally, certain environmental vehicle tax regulations are being re-evaluated.

The South Korean government is enhancing the competitiveness of domestically produced vehicles by introducing a domestic production tax credit, increasing depreciation deductions for electric commercial vehicles and hydrogen-powered vehicles.

The South Korean auto industry is closely watching the rapid rise of Chinese electric vehicles, which are leveraging price competitiveness as a strategic advantage. At the same time, the government is expanding support for the production of key components such as semiconductors and batteries, while excluding finished vehicles from tax reduction programs.

Original article: toutiao.com/article/1872640672223242/

Disclaimer: This article represents the personal views of the author.