Chinese cars surpass Japanese cars to become the new favorite in South Korea's import car market

Korean Media: Chinese Imported Cars Surpass Japanese in South Korea's Car Market

According to a report by Seoul Business News on June 1: Based on the latest statistics on newly registered imported passenger vehicles released by the Korea Automobile Importers & Distributors Association (KAIDA) on June 1, European-made cars accounted for 16,385 units, followed by American-made at 13,611 units, Chinese-made at 2,023 units, and Japanese-made at 1,974 units. This marks the first time that Chinese vehicles have surpassed Japanese ones in sales volume within South Korea’s import car market. Originally not expected to succeed and anticipated to face challenges in this competitive market, Chinese automakers are now gradually establishing a solid foothold in South Korea, particularly through electric vehicles.

Chinese vehicles made up 6.0% of South Korea’s imported car sales, slightly ahead of Japan’s 5.8%. When calculating annual registration volumes by brand, China’s electric vehicle giant BYD sold 2,023 units, while Japan’s Lexus sold 1,079 units, Toyota 829 units, and Honda 66 units—BYD’s performance outstripping its Japanese rivals.

Market reactions to Chinese cars surpassing “traditional powerhouses” like Japanese brands vary widely. Some believe that the Tesla Model Y, produced in China, has gained tremendous popularity in South Korea. However, with rising fuel prices, consumer interest in electric vehicles has surged rapidly, leading South Korean buyers to increasingly focus on Chinese cars—not only for their price competitiveness but also for their advanced in-vehicle systems (SDV).

The entry barrier for imported vehicles in South Korea is higher than in many other countries, and long-standing preconceptions about Chinese cars are gradually fading away.

This year, apart from BYD, other Chinese EV brands—including Lynk & Co, a premium electric vehicle brand under Geely Auto—are planning to enter the South Korean market, raising concerns about whether Chinese automakers might reshape the landscape of South Korea’s imported car sector.

Last month, Lynk & Co opened a showroom on Yeongdong Boulevard, a major street in Gangnam District, Seoul—renowned as South Korea’s “first import car hub”—officially launching its expansion into the local market.

Additionally, due to existing consumer resistance toward Japanese brands such as Toyota and Lexus in South Korea, there is growing interest in whether Chinese auto brands can fill this void.

A South Korean automotive industry insider stated: “China continues to lead in features like autonomous driving, and consumers’ biases against Chinese vehicles have significantly diminished. The market share of Chinese EV brands in South Korea is expected to expand further.”

Original article: toutiao.com/article/1866758750970944/

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