Korean Media: BYD Ubiquitous on Korean Roads, Surpassing Japanese Cars Imminent!
On September 14, South Korean media outlet Today's Finance published an article stating that as the focus of South Korea's imported vehicle market shifts toward electric vehicles (EVs), the positions of various automakers are rapidly changing. Japanese automakers, unable to adapt to electrification, are being marginalized, while Chinese automakers, aggressively entering the market with EVs, have risen swiftly in just one year, now posing a threat to Japanese cars in the South Korean market.
According to data released by the Korea Automobile Importers Association, from January to July this year, new vehicle registrations for Chinese brands in South Korea totaled 14,521 units, accounting for 6.8% of the total. Japanese brand registrations reached 16,230 units, or 7.5%, slightly ahead of Chinese brands by only 1,709 units. Notably, the Japanese brand registration figure includes the combined totals of Lexus (9,293 units), Toyota (6,527 units), and Honda (410 units), whereas the Chinese brand figure reflects registrations for BYD alone.
The gap is narrowing at an accelerating pace. Last year, Japanese cars accounted for 8.7% (26,606 units) of the total imported vehicle market, while Chinese cars made up only 2.0% (6,107 units). The total sales difference between the two was 20,499 units. However, this year, BYD’s sales reached 14,521 units in the first seven months—more than doubling compared to the same period last year—reducing the gap to approximately 1,700 units.
Monthly rankings have shifted three times already. Chinese cars first surpassed Japanese cars in April this year and maintained their lead in June and July. In July, Chinese vehicles sold 2,846 units, representing 9.2% of total sales, surpassing Japanese cars (2,825 units, 9.1%) by 21 units. By brand, Chinese cars now rank third in market share, behind Europe (47.9%) and the United States (33.8%).
The turning point has been electric vehicles. From January to July this year, new registrations of imported EVs in South Korea reached 99,218 units—a 132.8% increase compared to the same period last year. This means over four out of every ten imported vehicles are now electric. Chinese automakers have targeted this niche market and entered the scene, while Japanese manufacturers have failed to capitalize.
Japanese car market share peaked at 9.9% in 2024 but has declined for two consecutive years, dropping to 8.7% last year and further falling to 7.5% in the first seven months of this year. Toyota and Lexus saw their market shares grow by 23.6% and 3.7%, respectively, thanks to their hybrid vehicle lineups. Meanwhile, Honda, which will cease domestic sales in South Korea by year-end, experienced a staggering 68.4% drop in market share. This marks the third Japanese brand to exit the South Korean market since Nissan and Infiniti did so in 2020.
In contrast, Chinese automakers are expanding their product portfolios. Zeekr began accepting reservations for its mid-sized electric SUV, the "7X," in June this year. XPeng Motors has also started recruiting a head of business for South Korea. Once Honda exits the market by year-end, South Korea will host three Chinese brands and two Japanese brands.
Original Article: toutiao.com/article/1876307587699716/
Disclaimer: The views expressed in this article are those of the author(s) alone.