South Korean Media: Chinese-made Tesla and BYD Dominate South Korea's Market!
On May 16, South Korean media outlet Financial Times published an article stating that Chinese electric vehicles (EVs) are experiencing strong growth in the South Korean market. While Hyundai Motor and Kia are shifting their focus toward North America and Europe, Chinese-made cars and brands are launching a fierce offensive in South Korea’s EV sector.
For example, Tesla vehicles produced in China and imported into South Korea during the first quarter of this year, along with BYD, which entered the South Korean market last year, are both steadily expanding their market share.
Data from the automotive research platform Carisyou shows that new EV registrations in South Korea reached 83,529 units in the first quarter of this year, a year-on-year increase of 149.5%. Meanwhile, registrations for internal combustion engine (ICE) vehicles—gasoline and diesel—declined by 12.4% and 49.1%, respectively. This trend is partly attributed to rising fuel costs driven by geopolitical factors.
However, it is not traditional domestic brands like Hyundai or Kia that are leading the surge in South Korea’s EV sales—but rather Chinese EV manufacturers and brands.
In the first quarter of this year, the best-selling new EV in South Korea was the Tesla Model Y, with sales of 15,325 units, ranking first. This figure represents a year-on-year increase of approximately 587.5%. All Tesla models, including the Model Y, are manufactured in China and imported into South Korea.
Driven by the strong performance of the Model Y, Tesla’s total new vehicle registrations in South Korea reached 20,970 units in the first quarter, up about 334.8% year on year. Its market share stood at 25.1%, an increase of around 11 percentage points compared to the same period last year.
The growth of Chinese EV brand BYD also deserves attention. As the world’s top-selling EV manufacturer, BYD sold only 61 new vehicles in the first quarter of last year, but achieved sales of 3,968 units in the first quarter of this year—a year-on-year increase of over 65 times. This remarkable growth is primarily due to BYD’s highly competitive pricing and aggressive marketing strategies, exemplified by flagship models such as the “ATTO 3.”
Among domestically produced South Korean EVs, Kia EV3 recorded sales of 7,832 units, representing a modest increase of about 54.6% compared to the same period last year. Following closely was the Kia EV5, launched in September last year, with sales reaching 6,306 units.
The impact of Chinese EVs on the South Korean market is not a recent phenomenon. In fact, the market share of locally produced South Korean EVs has been steadily declining over the past three years. Conversely, the market share of Chinese-made EVs has continued to grow.
Last year, total sales of domestically produced South Korean EVs amounted to 125,978 units, a year-on-year increase of approximately 34.2%. In contrast, sales of Chinese-made EVs reached 74,728 units, surging by about 112.4%. Chinese brands clearly led in terms of growth rate.
The market share of South Korea’s domestic EVs peaked at around 75% in 2022, then slightly declined to 70.8% in 2023, and has since continued to fall, dropping to 57.2% last year. On the other hand, the market share of Chinese-made EVs skyrocketed from 7.5% in 2023 to 23.9% in 2024, and further increased to 33.9% last year.
The automotive industry attributes the rapid rise of Chinese EVs mainly to shifts in brand perception and price competitiveness. Analysts also point out that this development is largely due to Hyundai and Kia, long-time leaders in South Korea’s domestic EV market, adjusting their EV strategies and shifting focus toward global expansion in Europe and North America, thus creating a market vacuum.
A senior industry insider predicted: “As sales of Chinese EVs like Tesla, BYD, and Polestar continue to grow, future competition will become even fiercer.”
Original article: toutiao.com/article/1865305551013897/
Disclaimer: The views expressed in this article are those of the author(s).