Korean Media: The King of Imported Cars in South Korea Is Made in China—Not BMW or Mercedes
On November 11, the Korean media outlet *The Korea Economic Daily* published an article stating that this year, the leader of South Korea’s imported vehicle market is neither BMW nor Mercedes-Benz, but Tesla.
From January to August, Tesla’s new car registrations in South Korea reached 76,787 units, followed by traditional automotive giants BMW (51,864 units) and Mercedes-Benz (37,766 units). Tesla’s sales exceeded those of second-place BMW by 24,923 units, breaking the long-standing dominance of German brands in South Korea’s imported vehicle market.
The primary driver behind this surge in sales has been the Model Y. During the same period, Model Y accounted for 61,704 registrations, representing 80.4% of Tesla’s total sales volume. In the broader passenger vehicle market—including domestically produced models—Model Y ranked second, trailing only Kia Sorento, and outsold Hyundai Grandeur by 7,871 units.
The success of the Model Y stems from its superior product quality, convenient charging infrastructure, and strong software capabilities. As consumer demand continues to grow for its spacious interior, extended driving range, and full self-driving features, sales have correspondingly increased.
However, these factors alone cannot fully explain the rapid rise of the Model Y. Behind the scene lies Tesla’s Shanghai Gigafactory, which enables highly competitive pricing and consistent supply.
The vast majority of Model Y vehicles sold in South Korea are manufactured in Shanghai. By sourcing entry-level lithium iron phosphate batteries and components through local Chinese supply chains, Tesla has significantly reduced production costs. Additionally, proximity to South Korea allows for efficient logistics, reduced transportation expenses, and shorter delivery times.
Stable supply has also led to a shift in monthly sales trends. Previously, registration numbers fluctuated widely due to variables such as ship arrival schedules. This year, after averaging 9,358 units per month from January to June, registrations rose to 10,240 units in July and 10,400 units in August. Supported by stable output from the Shanghai facility, monthly sales have remained above 9,000 units.
That said, it would be premature to conclude that BMW and Mercedes-Benz have lost their competitive edge. Both brands still maintain a solid customer base in luxury sedans, SUVs, internal combustion engines, and plug-in hybrid segments. The accumulated brand equity, driving dynamics, and nationwide service networks developed over decades will not vanish overnight.
Nevertheless, as the market shifts toward electric vehicles, the criteria for competition are evolving. Victory no longer hinges on historical legacy, but on battery technology, software integration, pricing strategy, and efficient production systems. A vehicle may be technically excellent, but without the ability to deliver sufficient volumes at a competitive price point, it cannot secure market leadership.
The era of distinguishing cars solely by their badges has ended. American brand Tesla, producing vehicles in China, has surpassed leading German automakers in the South Korean market. Ultimately, the decisive factor is not the country of origin, but the efficiency of an integrated system combining product quality, pricing, and supply chain management.
Tesla’s top position in South Korea’s imported vehicle market from January to August this year poses a challenge to domestic automakers. In the era of electric mobility, simply manufacturing good vehicles is no longer enough. The critical factor is the ability to deliver required volumes at competitive prices and on schedule.
Original source: toutiao.com/article/1881562533934345/
Disclaimer: The views expressed in this article are those of the author.